To provide finance to eligible candidates sponsored by JKEDI under the Seed Capital Fund Scheme of Government of Jammu & Kashmir.

Finance under this product shall be available to trained and registered first generation entrepreneurs sponsored by the JKEDI under the Seed Capital Scheme to start environment-friendly ventures relating to certain core areas of the state economy which inter-alia shall include:
 i) Horticulture, floriculture, cultivation of medicinal and aromatic plants;
 ii) food-processing at the household/village level;
 iii) establishment of facilities for storage of food products/horticulture products: particularly cold chains;
 iv) handloom, handicrafts and other artisanal products: particularly design improvement, technology-transfer and marketing;
 v) ventures in poultry, sheep-breeding and production, collection, storage and marketing of milk: aimed at import substitution;
 vi) setting up of computer literacy/training institutes in villages/habitations particularly with a population of less than 3000 souls;
 vii) setting up of Fair Price Shops at small habitations across the State;
 viii) Health services unit/dental care units set up by doctors;
 ix) Pathological labs including diagnostic facilities set up by doctors/trained professionals;
 x) Services industry units engaged in maintenance ,repairing, testing of both electrical and electronic equipments/ instruments, services of all types of vehicles and machinery including TV’s, Radio’s, transformers, motors, etc set up by technically qualified persons such as Engineers or trained entrepreneurs;
 xi) Servicing and supply of components/parts of agricultural farm equipments/machinery items such as tractors, pumps, boring machines ,etc, set up by Engineers or technically trained entrepreneurs.
 xii) Tailoring and boutique units set up by educated and trained entrepreneurs;
 xiii) Tourism-related enterprises covering houseboat owners, setting up of Paying Guest facilities, small dhabas and restaurants with a capacity of 20 seats.
 xiv) All the above activities as approved by JKEDI or any other economically viable activity as may be approved by JKEDI

  • Priority Sector Advance.

The following shall be eligible under the Scheme:-
 (a) A state subject in the age group of 18 to 37 years having a qualification of 10+2 or above who is unemployed;
 (b) There will be no income ceiling for coverage under the scheme;
 (c) The beneficiaries must be registered with the concerned District Employment and Counseling Centre. They can also be registered with other departments and institutions like DICs etc. wherever required so as to take advantage of the benefits which may accrue through such registrations. The JKEDI shall facilitate this during the course of training under Entrepreneurship Development Programme;
 (d) Any person or any, existing units and the units which have already availed of any incentive or subsidy under any scheme of the Government of India or the State Government shall not be eligible for assistance under the scheme;
 (e) No institution, corporate body, society or an NGO shall be eligible for assistance under the scheme.

    Seed Capital for different categories of borrowers shall be as under:
    I). Individuals
    Under Graduates/Graduates: 35% of the project cost subject to a maximum of Rs 3 lacs.
    Post Graduates: 35% of the project cost subject to a maximum of Rs 5 lacs.
    Technically Qualified persons*: 35% of the project cost subject to a maximum of Rs 7.5 lacs.
    In Individual Cases where costlier technologies are involved, the upper limit shall be Rs 10.00 lacs**.

    II). Groups
    35% of the project cost subject to a maximum of Rs 10 lacs.
    * Technically Qualified Persons shall include Engineers, Doctors, Computer Science& Technology Graduates, MBAs, etc.
    ** The Screening Committee shall decide as to which case falls in this category.
  • Bank Loan:
    65% of the project Cost .In cases where the bank finance is secured by CGTMSE Cover, the maximum ceiling on Bank Finance shall be Rs 25 lacs. However, if the loan amount is secured by collateral security of immovable property, there shall be no ceiling on the amount of Bank finance.
  • c) Borrowers Contribution:
    Normally, the borrower shall not be required to contribute any margin money. However, in cases, where the project outlay exceeds the Seed Capital requirement and the Bank Loan, the entrepreneur/s shall induct the deficit amount from his own sources
  • d) Interest during moratorium: 
    Interest during moratorium shall be capitalized and shall form part of the total project cost.
  • e) Project cost comprises of Capital Cost as well as the entire working capital requirement.
  • Maximum of 2 years.

The maximum repayment period for different categories of borrowers shall be as under:
  Individual Undergraduates 5 Years
 Graduates                        6 Years
 Group                              7 Years
The repayment period shall be exclusive of the applicable moratorium period. For categories where sophisticated equipment is needed, the repayment period shall be 8 years after the applicable moratorium period.

  1. Primary Security:
    Hypothecation of assets created out of Bank Finance.
  2. Collateral Security: 
     For MSE Units where Bank Finance is up to Rs 25 lacs
    Guarantee cover under Credit Guarantee Scheme of CGFTMSE. 
    b. For MSE Units where Bank Finance is above Rs 25 lacs / Units not covered under MSE
    Mortgage of unencumbered immovable property having value not less than 100% of the Loan amount.
  • Comprehensive insurance of assets created out of Bank finance with the usual bank Clause.
  • Disbursement of Bank Loan shall be subject to receipt of full Seed Capital which shall be kept in a linked current account to be opened in the name of the borrower.
  • Finance including seed capital and margin, if any, shall be disbursed to borrowers in the manner as phased out in DPR.
  • Working Capital component of the Project cost shall be made available as a running facility(Cash Credit).
  • Finance for acquiring of Technology /machinery, etc shall be made directly to suppliers of goods.
  • Amount earmarked for interest to be released as applicable for servicing of interest during moratorium.