Swarna Jayanti Gram Swarozgar Yojana

The gist of SGSY Scheme guidelines is given below

Launching
A new programme known as Swarnjayanthi Gram Swarozgar Yojana has been launched from 1.4.99.This is a holistic programme covering all aspects of self employment such as organisation of the poor into Self Help Groups, training, credit, technology, infrastructure and marketing. With the introduction of this scheme, the earlier programmes viz., IRDP, TRYSEM, DWCRA, SITRA, GKY and MWS are discontinued.

Eligibility
The list of Below Poverty Line (BPL) households identified through BPL census, duly approved by the Gram Sabha will form the basis for identification of families for assistance under this scheme. The beneficiaries are known as ‘SWAROZGARIS”. The Swarozgaris may either be individuals or groups. SGSY lays emphasis on the group approach, under which the rural poor are organised into SGSY Groups.

Selection
The Swarozgaris would be selected from the BPL families by a three-member team consisting of BDO, Banker and Sarpanch.

Eligible Activities
The selection of activities should be such that it would enable the swarozgaris to expand their assets- and skill-base in three years so that in the third year the net income of the swarozgaris would be more than Rs.2,000 per month. The scheme lays stress on cluster approach i.e., concentration on a few selected activities (called Key Activities) in each block and attend to all aspects of these activities so that swarozgaris can draw sustainable incomes from their investment.

Quantum of Loan
The quantum of loan depends on the nature of the project and the area. Generally composite loan viz., both fixed and working capital is ensured under this scheme. SGSY has no investment ceiling other than the unit cost worked out for the project.

SGSY Groups
The formation of SGSY Groups lasts over a period of 6 months. At the end of this stage, the group is subjected to a test to ensure whether it has evolved into a good group and is ready to go into the next stage i.e., stage of evolution. In this stage, the group is graded. Groups with good grade will receive “Revolving Fund” from DRDA to augment the group corpus. This would enable more members to have access to credit and increase the per capita loan available to the members. At the end of six months from the date of receipt of the revolving fund, the groups will be subjected to another grading test to see if it has been functioning effectively and is capable of taking up an economic activity through higher levels of investment. Once the group has demonstrated that it has successfully passed through the second stage, it is eligible to receive the assistance for economic activities, in the form of loan and subsidy. The assistance is provided in two ways viz :

  1. Loan cum subsidy to the individuals in a SGSY Group, provided the prospective Swarozgaris in the group are capable of and willing to take up income generation activities under key activities.
  2. Loan cum subsidy to the Group, where all the members in the Group want to take up a group activity.

Subsidy
Subsidy under SGSY will be uniform at 30% of the project cost, subject to a maximum of Rs.7,500. However, in respect of SC/STs, subsidy will be 50% of the project cost with a ceiling of Rs.10,000 per borrower. For SGSY Groups, subsidy will be 50% of the cost of the project, subject to a ceiling of Rs.1.25 lakhs per Group. There will be no monetary limit on subsidy for irrigation projects under SGSY. Subsidy is back-ended.

Sub Targets-Stipulation
SGSY focus on the vulnerable groups among the rural poor. Accordingly, the 50% should go to SC/STs; 40% to women ; and 3% to the disabled.

Security & Margin
where movable assets are created

Loan Amount Security Norms Margin Norms
1. Individuals – up to Rs.50,000/- Hypothecation of assets created out of bank loan No margin (subsidy is to be treated as margin)
2. Groups – up to Rs.5.00 lakhs
1.Individuals - more than Rs.50,000/- Hypothecation of assets created out of bank loan and Mortgage of land 15-25% Margin (Margin inclusive of eligible subsidy)
2.Groups - More than Rs.5.00 lakhs

 where movable assets are not created

Loan Amount Security Norms Margin Norms
1. Individuals – up to Rs.50,000/- Mortgage of land * No margin (subsidy is to be treated as margin)
2. Groups – up to Rs.5.00 lakhs
1.Individuals - more than Rs.50,000/- Mortgage of land * 15-25% Margin (Margin inclusive of eligible subsidy)
2.Groups - More than Rs.5.00 lakhs


* Where mortgage of land is not possible, adequate collateral security in the form of insurance policy with adequate surrender value, marketable security/ deeds of other property etc. to be obtained to cover the loan amount

Rate of Interest
Interest rates is applicable irrespective of activity and individual or group as given below: [w.e.f. 15.02.2008]

Slab Interest rate
Upto Rs.50,000.00 8.75 % (Fixed)
Above Rs.50,000.00 9.00% (Fixed)

 

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