Jharkhand Chief Minister Employment Generation Scheme

Scheme Introduction: A Brief Overview

The Jharkhand Chief Minister Employment Generation Scheme is being implemented by the Department of Scheduled Tribe, Scheduled Caste, Minority and Backward Class Welfare, Government of Jharkhand, to connect the state's youth with self-employment and entrepreneurship opportunities. Under the scheme, eligible youth are provided loans and loan subsidies to start their own businesses, pursue self-employment, or undertake other income-generating activities. The scheme aims to provide the financial support needed to start a business and build a livelihood through self-employment. In this way, the scheme focuses on providing financial assistance to youth so that they can establish their own work opportunities instead of solely seeking employment.

Under the Jharkhand Chief Minister Employment Generation Scheme, eligible beneficiaries can avail themselves of loans ranging from ₹50,000 to ₹25 lakh. A 40% loan subsidy is provided, subject to a maximum limit of ₹5 lakh. In addition, the loan carries an annual interest rate of 6%. As per the scheme guidelines, interest is calculated on the remaining loan amount after deducting the loan subsidy amount. Depending on the loan amount and applicable scheme provisions, the beneficiary may also be required to contribute a prescribed share from their own resources. Thus, the scheme provides a defined financial support structure consisting of both a loan and subsidy to help eligible beneficiaries start their businesses.

The scheme is not intended for personal or general consumption-related expenses. Beneficiaries must use the loan for income-generating activities, self-employment, and starting their own business. Different provisions relating to beneficiary contribution and guarantors apply depending on the loan amount. For loans up to ₹50,000, no beneficiary contribution or guarantor is required. For loans above ₹50,000, beneficiary contribution and guarantor requirements apply as per the prescribed rules. Therefore, applicants should understand the financial provisions applicable to the loan amount they intend to seek before submitting their application.

The Jharkhand Chief Minister Employment Generation Scheme allows applicants to apply online. Interested and eligible applicants can submit their applications through the official CMEGP Jharkhand Portal. While applying online, applicants are required to provide the necessary personal and scheme-related information. It is advisable to review the eligibility conditions and required documents before starting the application so that all necessary information and documents are available while completing the form.

Benefits of the Scheme

The following benefits are provided under the Jharkhand Chief Minister Employment Generation Scheme:

• Eligible beneficiaries can avail themselves of loans ranging from ₹50,000 to ₹25 lakh.
• A 40% loan subsidy is provided on the loan amount.
• The maximum loan subsidy is ₹5 lakh.
• The loan carries an annual interest rate of 6%, with interest calculated on the loan amount remaining after deduction of the subsidy amount.
• No beneficiary contribution is required for loans up to ₹50,000.
• No guarantor is required for loans up to ₹50,000.
• A 10% beneficiary contribution applies to loans above ₹50,000.
• The loan is intended for self-employment and income-generating activities.
• The scheme provides financial assistance to youth for establishing their own businesses.

Loan and Subsidy Structure

A 40% loan subsidy is provided on loans sanctioned under the scheme. The structure is as follows:

Beneficiary Contribution

• Loans up to ₹50,000: No beneficiary contribution is required.
• Loans from ₹50,001 to ₹25 lakh: A beneficiary contribution of 10% of the total project cost is applicable.
• The remaining amount is determined according to the term-loan/financial assistance structure prescribed under the scheme.

Guarantor Rules

• No guarantor is required for loans up to ₹50,000.
• A guarantor is required for loans above ₹50,000, as per the applicable provisions.
• A guarantor may be a serving or retired employee of a government/semi-government/private organisation, an elected or former elected public representative, or an income-tax payer.
• For loans related to plant and machinery and vehicles, hypothecation of the relevant asset is accepted as security.
• The corporation under the department may also accept movable or immovable property equivalent to the loan amount as security.

Eligibility Requirements

Applicants must fulfil the prescribed eligibility conditions to apply under the Jharkhand Chief Minister Employment Generation Scheme:

• The applicant must be between 18 and 50 years of age.
• The applicant must be a permanent resident of Jharkhand.
• The following categories are eligible to apply:
  • Scheduled Caste (SC)
  • Scheduled Tribe (ST)
  • Minority communities
  • Persons with disabilities
  • Backward Classes (BC)
• The annual family income in both rural and urban areas must not exceed ₹5 lakh.
• The applicant must not be employed in a government or semi-government service.
• The applicant must not have previously availed of a loan subsidy from any government or semi-government institution.
• The applicant must not be a defaulter of any bank or financial institution.
• Applicants with disabilities must have a disability certificate showing at least 40% disability.

Required Documents

Applicants should keep the following documents ready while applying for the Jharkhand Chief Minister Employment Generation Scheme:

• Applicant's photograph
• Residential certificate
• Caste certificate
• Income certificate
• Copy of Aadhaar and PAN card
• Copy of the first page of the bank passbook
• Copy of the project proposal
• Training certificate, if available
• Self-declaration form
• Guarantor documents, wherever applicable

Application Process

The application process for the Jharkhand Chief Minister Employment Generation Scheme is online and can be completed through the following steps:

• First, visit the CMEGP Jharkhand Portal.
• On the homepage, click on the Apply Online option.
• Next, select the New Registration option.
  
• Complete the registration form by entering the required information.
• After completing registration, go to Applicant Login and enter your mobile number and password.
  
• After logging in, enter the required personal, business, and scheme-related information in the application form.
• Upload the required documents as specified in the form.
• Finally, submit the application according to the instructions provided on the portal.
• Once submitted, the application process for the scheme will be complete.

Which Businesses Are Not Covered Under the Scheme?

The following activities/businesses are not covered under the scheme:

• Businesses related to intoxicants such as liquor, handia, and tari are not covered.
• Activities that cause environmental damage are not covered under the scheme.
• Loans under the Employment Generation Scheme cannot be used for consumption purposes.
• For example, businesses involving polythene bags/carry bags/packaging materials with a thickness of less than 20 microns are not covered.

Relevant Links

• Department of Scheduled Caste, Scheduled Tribe, Minority and Backward Class Welfare
• CMEGP Jharkhand Portal
• Jharkhand Chief Minister Employment Generation Scheme Guidelines

Contact Information

• Department of Scheduled Caste, Scheduled Tribe, Minority and Backward Class Welfare Helpline Numbers:
  • 0651-2400215
  • 0651-2446282
• Department Helpdesk Email: [email protected]