Today’s Youth is driven by passion, it does run after prosperity and luxury at the cost of their content. It aims towards a purposeful life. The daily 9-5 job & the hectic routine is not the kind of life a young person in this generation would like to lead. Youth is full of aspirations nowadays, they often go for startups for their content & certain areas of work where creativity is the core.
New market trends continue to emerge in India Travel and Tourism, involving the improvement in economic conditions & companies coupled with technological advancements to shape new market dynamics.The major reason for travel industries’ growth is the will of the people to try something new & exciting for an adventurous experience. The travel field stands by your faith in it & gives you never forgetting experiences. Plus, being a part of travel industry is itself a beneficial option to go for as everyday in this field is a new day, creativity is at its peak.
Those going for startups in the travel & tourism must know about the schemes introduced by the Government of India which might prove to be a great turn in their business to increase their goodwill.
The following schemes are mentioned below :
1.Prime Minister Employment Generation Programme (PMEGP) Scheme
It is a new credit linked subsidy programme merging the two schemes that were in operation till 31.03.2008, namely Prime Minister’s Rozgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non Government Organization (NGOs)/reputed autonomous institutions/Self Help Groups (SHGs) / National Small Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development.
Objectives of (PMEGP):
It aims to generate continuous and sustainable employment opportunities in Rural and Urban areas of the country and to facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility for (PMEGP) :
1. Individuals above 18 years of age
2. VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
3. Self Help Groups and Charitable Trusts
4. Institutions Registered under Societies Registration Act- 1860
5. Production based Co-operative Societies
Salient Features Of ( PMEGP) :
1. No income ceiling for setting up of projects.
2. Assistance under the Scheme is available only to new units to be established. Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
3. Any industry including Coir Based projects excluding those mentioned in the negative list.
4. Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
5. Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector.
How to apply for (PMEGP) :
- Prepare a project report on your business.
- Apply online on kvic website
- Go through interview process by kvic/dic/kvib chosen nodal agency.
Terms & conditions on Loan (PMEGP) :
1.The Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of special category of the beneficiary/institution,
and disburse full amount suitably for setting up of the project.
2. Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital.
- The amount of Bank Credit will be ranging between 60-75% of the total project cost after deducting 15-
4. 35% of margin money (subsidy) and owner‟s contribution of 10% from beneficiaries
belonging to general category and 5% from beneficiaries belonging to special categories.
5.Though Banks will claim Margin Money (subsidy) on the basis of projections of
Capital Expenditure in the project report and sanction thereof, Margin Money (subsidy) on
the actual availment of Capital Expenditure only will be retained and excess, if any, will be
refunded to KVIC, immediately after the project is ready for commencement of production.
6.Working Capital component should be utilized in such a way that at one point of
stage it touches 100% limit of Cash Credit within three years of lock in period of Margin
Money and not less than 75% utilization of the sanctioned limit. If it does not touch aforesaid limit, proportionate amount of the Margin Money (subsidy) is to be recovered by the Bank/Financial Institution and refunded to the KVIC at the end of the third year.
7. Rate of interest and repayment schedule
Normal rate of interest shall be charged. Repayment schedule may range between 3
to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial
Prime Minister Mudra Scheme
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non Banking Finance Companies (NBFC) for loans upto Rs 10 lakhs for non-farm income generating activities. The scheme was launched on 8th April, 2015 by the Hon’ble Prime Minister.
Eligibility for Mudra Scheme :
Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under Pradhan Mantri Mudra Yojana (PMMY).
How to apply for Mudra Scheme :
1.Approach the local branch of any of the financial institutions in their region – PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non Banking Finance Companies (NBFC).
2.Apply on the portal website
Terms & conditions on Mudra Loans :
Types of loan –
Shishu : covering loans upto 50,000/-
Kishor : covering loans above 50,000/- and upto 5 lakh
Tarun : covering loans above 5 lakh and upto 10 lakh
(The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth & Development and funding needs of the entrepreneur and also provide a reference point for the next phase of graduation / growth to look forward to.
- It would be ensured that at least 60% of the credit flows to Shishu Category Units and the balance to Kishor and Tarun Categories.
3. There is no subsidy for the loan given under PMMY. However, if the loan proposal is linked some Government scheme, wherein the Government is providing capital subsidy, it will be eligible under PMMY also.
- No processing fee and No collateral
5. Repayment period of loan is extended up to 5 years. Applicant should not be defaulter of any Bank / Financial Institution
Stand Up India Scheme
Objective of Stand Up India Scheme :
Main objective is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector.
Eligibility for Stand Up India Scheme :
1. SC/ST and/or woman entrepreneurs, above 18 years of age.
2. Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
3. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
4. Borrower should not be in default to any bank/financial institution.
How to apply for Stand up scheme :
Access the portal website ( standupmitra.com) or visit a bank branch.
Terms & conditions on Loan of Stand -Up India :
- The nature of the loan is Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.
2. Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
3.The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
4. Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
5. The loan is repayable in 7 years with a maximum moratorium period of 18 months.
6. For drawal of Working capital upto 10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower.
Working capital limit above 10 lakh to be sanctioned by way of Cash Credit limit.
7. The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.
For the above schemes
Documents required :
1. Proof of identity & Residence : Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aaadhaar Card / Passport / Photo Ids issued by Govt. authority etc.
3. Applicant’s recent Photograph (2 copies) not older than 6 months.
4. Quotation of Machinery / other items to be purchased / Name of supplier
5. Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any
6. Proof of category like SC / ST / OBC / Minority etc.
The above schemes have an objective of encouraging, promoting & boosting the youth to stand on their own feet. It will help the freshers to start their business in any sector without worrying about the capital & loans.