Loan for Self & Unemployed in GOA | Chief Minister’s Rojgar Yojana

Download Project Report Format for CMRY Loans above 10 Lakhs.

Chief Minister’s Rojgar Yojana (CMRY) – 2023

Purpose of Loan

To provide self-employment (Rojgar) opportunities to Goan youth by way of financial assistance to new as well as expansion of existing units for setting up projects for eligible activities.

Eligibility

Age

18 years to 50 years (Relaxable by 5 years in case of widow, disabled person, scheduled caste, scheduled tribe, other backward class person).
The loan repayment period should not exceed 60 years of the age of the borrower.

Educational qualification

VIII^thpassed, (Relaxable in deserving cases). Preference will be given to those who have technical/professional qualifications. These will include candidates trained by GHRSSIDC, Agriculture Department, Forest Department or under any other Government Training Scheme.

Family income

No income ceiling.

Residence proof

Permanent resident of the area for at least 15 years. Documents required– Residential Certificate or School Leaving Certificate or passing Certificat1e from Goa Board/Goa University or any document to the satisfaction of the sanctioning authority.
Those who do not fulfill the domicile condition, but are married to a person of Goan origin, and whose spouse is a resident of Goa for atleast 15 years, shall also be eligible for assistance, provided he/she is settled in Goa for a minimum period of one year.

Defaulter/ Non Eligibility

Should not be a defaulter to any nationalized bank/financial institution/co-operative bank. Further, a person already assisted under other subsidy linked scheme will not be eligible under this scheme, unless otherwise relaxed/specified.

Activities covered

All economically viable/legal activities except dealing in alcohol & tobacco. The scheme shall cover the following activites:
CSC-VLE ( Common Service Centres – Village Level Enterprises)
Start- ups (for fixed assets only)
Homestay, Bed and Breakfast (for fixed assets only)
Civil/Electrical Contractors (for fixed assets only)

Loan Assistance

Project cost

Professional degree/diploma/I.T.I., including those undergoing special training programmes conducted by authorised Government Departments/ Corporations.	Maximum Rs. 25.00 Lakhs
Others	Maximum Rs. 20.00 Lakhs

Means of Finance

DITC Share Capital	General (Men)	50% of Project Cost
	Women /OBC /Disabled	50% of Project Cost
	SC/ ST	80% of Project Cost

EDC Term Loan	General (Men)	40% of Project Cost
	Woman/ OBC/ Disabled	45% of Project Cost
	SC/ ST	15% of Project Cost

Promoter’s Contribution	General (Men)	10% of Project Cost
	Woman/ OBC/ Disabled	5% of Project Cost
	SC/ ST	5% of Project Cost

Interest rate
Penal Interest

Both EDC Term loan & DITC Share capital @ 8%p.a
Penal interest @ 2% p.a. on the defaulted amount for the defaulted period of EDC Term Loan &DITC share capital shall be charged.

Margin for loan

General (Men)	10%
Woman/ OBC/ Disabled/SC/ST	5%

Moratorium period

Maximum one year (Moratorium period at the discretion of the Task Force Committee).

Security

First charge of mortgage/hypothecation of fixed/current assets

Collateral

1.Loans up to Rs.2.00 lakh: Personal guarantee by the applicant & spouse, as a Confirming Party, in case of married person and of parent/relative, in case of unmarried person and also for non transport loans, where minimum 75% (50% in case of SC/ST applicant) of the loan amount is secured by way of hypothecation / mortgage of the fixed assets being financed.

2.Loans above Rs.2.00 lakh and up to Rs.6.00 lakh: The applicant has to provide third party personal guarantee of one or more guarantors depending upon the loan amount in addition to the guarantee of the spouse in case of married person and parent/relative in case of unmarried person. Such a guarantor could be one of the following:-
a) An employee of the Government of Goa/ Corporations of Government of Goa/ Autonomous Body/ Government Aided and other Institutions controlled by the Government of Goa.

b) Any other person with taxable income of minimum Rs.5.00 lakh for preceding 3 years with take-home salary commensurate to the EMI of the loan.

c) An employee of Companies of repute to the satisfaction of the TFC provided they are regular employees working for more than 10 years.

d) A person owning an unencumbered immovable property in Goa, the value of which should commensurate to the loan amount.

3. Loans above Rs.6.00 lakh: Notarised copy of ownership documents of the unencumbered immovable property owned by the guarantor/s, commensurate to the loan amount to be produced.
The guarantor should not be a defaulter with any financial institution/bank and shall have suitable capacity to service the loan being extended.

Loans upto ` Rs. 1.00 lakh

The Task Force Committee could consider proposals up to Rs.1.00 lakh depending upon genuineness of the applicant and the project, based on an affidavit of self-declaration of having obtained/in the process of obtaining all clearances from competent authorities, as applicable to their proposed venture.
The Joint Managing Director, EDC Limited or in his absence General Manager, EDC Limited (Link officer) is authorized to sanction CMRY loans up to Rs.2.00 lakh and vehicle loans up to Rs.6.00 lakh.

Disbursement

Disbursement of loan is made to the suppliers on the basis of proforma invoice in respect of machinery, furniture and furnishing, working capital, vehicle etc.
The supplier will have to furnish an undertaking in the prescribed format stating that the items/vehicle will be delivered as per specified in proforma invoice.
Physical verification of the assets acquired and valuation of the furniture/furnishing will be carried out.

Repayment Schedule

Vehicle	5 years
Other activities	5 to 7 years

Repayment schedule includes the moratorium period of maximum 1 year in monthly EMIs.

Default In Repayment

If the borrower fails to repay the loan amount including interest thereon as per repayment schedule, the same shall be recovered from the borrower/guarantor under provisions of the Goa Public Monies (Recovery of dues) Act,1986 (PMRA)/Land Revenue Code (LRC) and/or section 29,30 &31 of SFC’s Act, or SARFAESI Act or Recovery of Debts Due to Bank Act (DRT) and/or any other provisions of Law.

Application Form/Fees

Application form

Eligible persons shall apply in prescribed application form priced at Rs.100/- giving details of their project along with requisite documents.

Processing Fees

Duly completed application form shall be submitted to EDC Ltd. with non- refundable processing fee of :

Rs.500/- (plus GST applicable) for loans up to Rs.5.00 lakh;

Rs.5,000/- (plus GST applicable) for loans above Rs.5.00 lakh.

(50% to be paid on submission of the form and 50% to be paid after sanction of the loan).

However, SC/ST applicant will be charged application fee of Rs.200/- (plus GST applicable) irrespective of loan amount.

Subsidy

Interest rebate 75%(@ 6% p.a.) of EDC Term loan and DITC share capital shall be credited to the loan account of the beneficiary as subsidy, subject to fulfilling terms and conditions for availing the said subsidy. This subsidy shall be subject to entitlement and reimbursement of the amount by the Government as per the laid down norms.
This Subsidy shall be eligible on all the fixed assets and current assets.
This subsidy shall be released to borrowers who pay EMIs regularly & the unit being fully operational.

Training

The Scheme envisages compulsory entrepreneurship training of upto 3 days for the beneficiary after the loan is sanctioned but before disbursement of the loan. This may be exempted and made optional based on recommendations of Task Force Committee on case to case basis.

Other terms & conditions

Projects without fixed assets are not eligible, working capital will be restricted to 40% of the project cost.
Cost of land cannot be covered under project cost.
The Existing units and the units that have already repaid earlier loans of PMRY, REGP, PMEGP, CMEGP or any other schemes, by production of No dues for the said loan may be considered.
CMRY Loan will be restricted to one loan (existing/new) per family.
For financial assistance of Rs.10.00 lakh or more the Applicant shall submit a project report.
No takeover of existing loans will be considered.
TFC and EDC management shall decide on all matters related to interpretation/implementation/ operation of the scheme and it will be referred to the Government only if required.
In case the unit is found ineligible on account of misrepresentation/ miscalculation, the amount of interest rebate shall be repayable forthwith by the unit/party if not shall become recoverable as arrears of Land Revenue.

Task Force Committee

A Task Force Committee (TFC) comprising of the following will scrutinize and sanction applications under the Scheme:

1.	Vice Chairman of EDC or any other Director of EDC, as approved by the Government	:	Chairman of TFC
2.	Director, EDC Board	:	Member
3.	Representative of Directorate of Industries, Trade & Commerce (not below the rank of G.M.-DITC)	:	Member
4.	Representative of Finance Department (not below the rank of Under Secretary)	:	Member
5.	Technical person (Government Nominee)	:	Member
6.	Professional in the field – Chartered Accountant	:	Member
7.	Jt. M. D. – EDC Limited	:	Member

Validity

The Scheme shall be valid for a period of 3 years w.e.f. 01/04/2023 to 31/03/2026.

FREQUENTLY ASKED QUESTIONS (FAQ)

Who is eligible under the CMRY Scheme?

All educated unemployed / self-employed persons between18 to 50 years are eligible. The age is relaxable by 5 years incase of widow, disabled person, scheduled caste, scheduled tribe and other backward class person.

What are the main criteria for availing the Scheme?

The applicant should be minimum Std. VIII^thpass, have a 15 year residence certificate years and should not be a defaulter to any nationalized bank/financial institution/co-operative bank.

What happens if the applicant does not have a 15 years residence certificate?

Those who do not fulfil the domicile condition of 15 years, but are married to a person of Goan origin, and whose spouse is a resident of Goa for atleast 15 years, shall also be eligible for assistance, provided he/she is settled in Goa for a minimum period of one year.

What are the activities that can be financed under the Scheme?

All economically viable/legal activities are financed except those dealing in alcohol & tobacco.

What is the maximum project cost that can be considered for finance?

Maximum Rs. 25.00 lakh, for an individual with professional degree/diploma/I.T.I., etc

Maximum Rs. 20.00 lakh, for others in general

How much is the finance that I will get?

Depends on the project and the quotations submitted.

What is the promoter’s margin that I need to bring in?

10% minimum promoter’s contribution in general category and 5% in case of woman/disabled/SC/ST/OBC applicant.

What is the repayment period for the loan?

5 to 7 years (including moratorium of maximum 1 year) in monthly installments. In case of loans against vehicles, and certain other activities involvingassets having shorter life span the maximum repayment may be restricted to 5 years.

What is the interest rate applicable?

8% p.a., Interest rebate @ 6% p.a. (i.e. 75% of the interest charged), subject to unit being in operation and regular in repayment of EMI’s.

Effective rate of interest @ 2% p.a.

What happens if interest is not paid as per schedule?

In case of late payment, Penal interest @ 2% p.a., on the defaulted amount for the defaulted period of EDC Term Loan and share capital of DITC shall be charged.

What is EMI?

EMI stands for Equated Monthly Instalments. This instalment comprises of both principal and interest components.

How do I pay the EMI?

You can pay the EMIs through www.goaonline.com. For details visit our website www.edc-goa.com

Do you check the CIBIL report of the borrower and guarantor ?

The CIBIL Report of the applicant and guarantor should be satisfactory.

Can I avail loan to acquire a premise?

Yes. Assistance for acquiring premises which may be required for the proposed project, could also be considered, subject to the condition that exposure for such premises shall not exceed 50% of the maximum eligible project cost limit under the Scheme, in all cases except in case of professionals and technically qualified persons, wherein it can be as high as 70%.

How is the loan secured?

The loan is secured by way of hypothecation of fixed assets and working capital and by way of mortgage of the premises if it is being acquired.

Do I need to have a guarantor for the loan?.

Yes,

a) For loans amount upto Rs. 2.00 lakh: Personal guarantee of the applicant and spouse, as a Confirming Party, in case of married person. If unmarried, guarantee ofparent/relative to be provided.

b) For loans from Rs. 2 lakhs upto Rs 6.00 lakh: The applicant has to provide personal guarantee of one or more guarantors depending upon the loan amount in addition to the guarantee of the spouse in case of married person. Such a guarantor could be one of the following:

An employee of the Government of Goa/ Corporations of Government of Goa/ Autonomous Body/ Government Aided and other Institutions controlled by the Government of Goa;
Any other person with taxable income of minimum ₹5.00 lakh for preceding 3 years with take-home salary commensurate to the EMI of the loan;
An employee of Companies of repute to the satisfaction of the TFC provided they are regular employees working for more than 10 years;
A person owning an unencumbered immovable property in Goa, the value of which should commensurate to the loan amount;

c) For Loans above Rs. 6.00 lakh: Notarised copy of ownership documents of the unencumbered immovable property owned by the guarantor/s, commensurate to the loan amount to be provided.

What are the documents that need to be submitted by the promoter?

The general documents to be submitted are:

School leaving or qualification certificate
15 years Residency certificate
Aadhar card
PAN card
Election card
House tax receipt
Self declaration by the applicant in the prescribed format
Professional Driving license/ badge / business assurance recommendation letter in case of loan for vehicle

What are the documents of the guarantor required?

Aadhar card
PAN card
Election card
Notarized copy of title of immoveable property owned if loan is more then Rs 6 lakhs
ITR for preceding 3 years (if in business/private sector job)
Salary slip (if Government Employee)

In case the premises are taken on rent what are the documents required?

NOC from the lessor in the prescribed EDC format.
Latest House tax receipt of the said premises in the name of the lessor.

In case I am sanctioned CMRY loan, am I am eligible for a second loan for expansion?

Yes, within 3 years subject to project cost limits.

Am I entitled for any subsidy under the CMRY Scheme?

There is no subsidy for purchase of fixed assets. However, Interest rebate @ 6% p.a ( i.e 75% of the interest charged) on EDC term loan and DITC share capital shall be credited to the loan account of the beneficiary, subject to fulfilling terms and conditions for availing the rebate. This rebate shall be subject to entitlement and reimbursement of the amount by the Government as per the laid down norms.

This rebate amount shall be eligible on all the fixed assets and current assets funded by the Corporation and shall be released to borrowers who pay EMI’s regularly & the unit being fully operational.

What happens if I default in payment of loans?

If the borrower fails to repay the loan amount including interest thereon as per repayment schedule, the same shall be recovered from the borrower/guarantor underprovisions of the Goa Public Monies (Recovery of dues) Act, 1986 (PMRA)/ Land Revenue Code (LRC) and/or section 29, 30, & 31 of SFC’s Act, or SARFAESI Actor Recovery of Debts Due to Bank Act (DRT) and/or any other provisions of Law. No interest rebate is payable on the defaulted EMI’s. Rebate can be resumed on payment of defaulted EMI’s but only for the balance amount or for fresh EMI’s.

Chief Minister’s Rojgar Yojana – 2023

FREQUENTLY ASKED QUESTIONS (FAQ)