Seed Money Scheme (Sms) in Maharashtra

 Updated on April 5, 2022, 6:27 a.m.

Maharashtra is the third biggest state in the country as far as the geography is concerned. The regional language of the state is Marathi, and the majority of the people speak Hindi. The state of Maharashtra has the Western Ghats running through the west coast, where we find the world renowned Konkan railway line connecting south to the north consisting of 40 tunnels created inside the mountains using the western technology.

The state has Arabian Sea on its western coast and is bordered by many states like Karnataka, Chhattisgarh, Goa, Madhya Pradesh and Gujarat. Narmada, Tapi, Godavari are the leading rivers of Maharashtra.

The process of raising the money to develop the region for growth of new business or a new idea is known as the Seed Money Scheme (SMS).The stimulating feature of this scheme is that it only takes into account the cost of creating the proposal.

Furthermore, in order to obtain approvals and support in the daily working of the firm you need to contact the venture capitalists and other financial institutions in Maharashtra.

VISION:

To inspire and remodel, build a healthy and worthwhile self-reliant movement in Maharashtra, to empower the society and reach superior heights by ensuing superior economic development.

OBJECTIVES:

  • The major objective of the Seed Money Scheme (SMS) is to motivate the unemployed youth of Maharashtra state to become job creators rather than becoming job takers.

ELIGIBILITY PARAMETERS:

The eligible criteria to become the member of the Seed Money Scheme (SMS) are as follows:

  • The person must be in the age group between 18 to 55 years.
  • Applicant must have cleared VIII standard.
  • Person must be born in the state of Maharashtra.
  • Must have lived in Maharashtra for 15 years and show the Domicile Certificate.

FEATURES OF THE SEED MONEY SCHEME (SMS):

Some of the features of the Seed Money Scheme (SMS) launched by the Government of Maharashtra are given below as follows:

  • Helps in offering soft loans to the unemployed people, so that they can share the expenses and deliver a good start to the business.
  • This scheme is appropriate for people in rural and urban Maharashtra.
  • The rate of interest is low under the Seed Money Scheme (SMS).
  • This scheme is the best fit for the project that costs up till INR 25 Lakhs in numerous segments.
  • Through the Seed Money Scheme (SMS), a bank loan comprising the 75% of the project cost is covered.
  • This scheme encourages the youth to have idea about starting business and being innovative in nature.
  • This is done through offering Soft Loans, Doing Ventures and offering quality services to noteworthy clients.
  • 20% reservation under the Seed Money Scheme (SMS) is offered to applicants belonging to the SC/ST, OBC, Differently abled and others.
  • Rate of interest is 6% and the person borrowing the money is liable to make payment within the stipulated time at a reasonable rebate of 3% only.
  • Not able to pay the instalments under the Seed Money Scheme (SMS) will attract 1% penal interest on the money.
  • Money offered to the applicants under this scheme is INR 3.75 Lakhs Per Annum.
  • If an individual borrows the money, the repayment of the money will begin only after 6 months of taking the loans.
  • If a corporate, industrial establishment, enterprise, or a business house borrows the money under the Seed Money Scheme (SMS), then the repayment of the money begins after 3 years in 4 yearly instalments.
  • This scheme plays avital role in creating a strong base and eco system for start-ups in Maharashtra.

DOCUMENTSREQUIRED FOR ENROLLING IN THE SEED MONEY SCHEME (SMS):

As per the Seed Money Scheme (SMS), introduced by the Government of Maharashtrathe documents required for enrolling in this scheme is given below as follows:

  • Birth Certificate attested by the Gazetted officer.
  • Nativity Certificate.
  • Attested copies of the Property documents and Invoices.
  • Industry license if the person is an entrepreneur and owning his/her business in Maharashtra.
  • Project report for the line of business to be created.
  • Source of Income details to be furnished.
  • Duplicate of Passport, Ration card, Voter Id, and Driving License signed by the Gazetted officer.
  • Caste Certificate attested.
  • Bank Passbook Xerox signed by the Gazetted officer.
  • Income Certificate attested by the Gazetted officer.

FREQUENTLY ASKED QUESTIONS:

  1. How much seed money is offered under the Seed Money Scheme?

Ans: INR 3.75 Lakhs is the maximum money offered under the Seed Money Scheme (SMS) by the Government of Maharashtra.

  1. When was this scheme executed by the Government of Maharashtra?

Ans: The Government of Maharashtra executed this scheme as per the government order dated on 18-05-2007.

  1. What is the salient feature of this scheme?

Ans: Under this scheme, 20% reservation is offered to applicants belonging to the SC/ST, OBC, Differently abled and others.

  1. When the industries taking the loan under the Seed Money Scheme start repaying the amount?

Ans: The industries taking the loan under the Seed Money Scheme will start repaying the loan after three years in four yearly instalments.

  1. What are the major benchmarks for the project costing up till 25 Lakhs for the business establishments in Maharashtra?

Ans: The scheme offers funds for the project up till INR 25 Lakhs for the business establishments in Maharashtra state.

  1. How to apply for availing the benefits under the Seed Money Scheme?

Ans: It is very simple. You need to visit any of the following offices to avail the Seed Money Scheme. They are as follows:

  • Nagar Palikas.
  • Nationalised banks like SBI, Canara Bank and others.
  • Khadi and Village Industries Boards.
  • District Industries Centre (DIC).
  • Grama Panchayats of respective villages.
  • Khadi and Village Industries Commission.
  1. Who can apply for the Seed Money Scheme?

Ans: A good start up established not less than 2 years and struggling for finance is invited to join this scheme sponsored by the Government.

  1. Can I apply for the scheme as an individual entrepreneur?

Ans: Yes, you can apply for this scheme as an entrepreneur even without any team, provided you submit the industry license and the project report for financial assistance.

  1. Does this scheme support start-ups from any specific segment?

Ans: No, The start-ups from any sector can apply for this scheme, since it is sponsored by the government.

  1. Are there any exemptions to the eligibility criteria’s?

Ans: No, there are no exemptions to the eligibility criteria’s.

  1. Are there any fees for joining this scheme?

Ans: No, there are no fees for joining this scheme.

  1. Who is going to review the application?

Ans: The application will be reviewed by the chairman of the    management committee and comprise of experts from industry, state government, and representative from financial institution.

CONTACT DETAILS:

The applicant must send the letter to the below mentioned address:

Directorate of Industries,
New Administrative Building,
2nd Floor, Madame Cama Road,
Opp. Mantralaya,
Mumbai—400032
Email: didci@maharashtra.gov.in
Phone: (022)-22028100.

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