Goa Chief Minister's Rojgar Yojana

Scheme Introduction: A Brief Overview

The scheme is designed to help eligible applicants turn a viable business idea into a working enterprise without having to arrange the entire project cost on their own. Applicants with professional or technical qualifications such as a degree, diploma or ITI can undertake projects costing up to ₹25 lakh, while other eligible applicants can undertake projects up to ₹20 lakh. The project cost is shared through DITC Share Capital, an EDC Term Loan and the applicant's own contribution.

CMRY also offers an important interest benefit. Eligible beneficiaries can receive a 75% interest rebate, equivalent to 6% per annum, subject to the prescribed conditions. Beneficiaries who repay their EMIs regularly and keep their business operational may therefore have an effective interest burden of around 2% per annum, subject to the applicable scheme conditions and Government reimbursement norms.

The scheme supports a wide range of economically viable and legally permitted activities. These include CSC-VLEs, start-ups, homestays, bed-and-breakfast establishments, and civil and electrical contracting activities, along with other eligible business activities. However, activities involving alcohol or tobacco are not covered under the scheme.

Chief Minister's Rojgar Yojana is available to eligible applicants who meet the prescribed conditions relating to age, education, residence, banking record and project eligibility. The scheme also provides specific benefits and funding arrangements for categories such as women, OBC, persons with disabilities, SC and ST applicants.

CMRY was initially introduced for the period from 1 April 2023 to 31 March 2026. The scheme has subsequently been extended for another three years and is now valid up to 31 March 2029. Applications are processed through EDC Limited as per the prescribed procedure and conditions of the scheme.

Benefits

• Financial assistance is available for setting up new eligible enterprises as well as for the expansion of eligible existing units.
• Professional and technically qualified applicants can undertake projects up to ₹25 lakh.
• Other eligible applicants can undertake projects up to ₹20 lakh.
• An interest rebate of 75% of interest, equivalent to 6% per annum, is available subject to the prescribed conditions.
• Women, OBC, persons with disabilities, SC and ST applicants are required to contribute only 5% of the project cost from their own funds.
• General Male applicants are required to contribute 10% of the project cost.
• Working capital can be included up to 40% of the project cost.
• A moratorium of up to 1 year may be allowed by the Task Force Committee.
• The scheme covers a broad range of economically viable and legally permissible activities.

Activities Covered

The scheme covers all economically viable and legally permissible activities, subject to the conditions of CMRY-2023.

• CSC-VLE – Common Service Centres / Village Level Enterprises
• Start-ups – fixed assets only
• Homestays – fixed assets only
• Bed & Breakfast establishments – fixed assets only
• Civil contractors – fixed assets only
• Electrical contractors – fixed assets only
• Other economically viable and legally permissible activities

Note: Activities involving the sale or dealing of alcohol or tobacco are not covered under the scheme.

Eligibility Criteria

Applicants must satisfy the prescribed eligibility conditions before applying for CMRY.

• The applicant must be between 18 and 50 years of age.
• The upper age limit is relaxed by 5 years for widows, persons with disabilities, SC, ST and OBC applicants.
• The repayment period should not extend beyond the applicant attaining 60 years of age.
• The minimum educational qualification is VIII Standard pass. This requirement may be relaxed in deserving cases.
• Preference is given to applicants with technical or professional qualifications and those trained under Government schemes or departments.
• There is no income ceiling under Chief Minister's Rojgar Yojana.
• The applicant should generally be a permanent resident of Goa for at least 15 years.
• The applicant should not be a defaulter to any nationalized bank, financial institution or cooperative bank.
• A person already assisted under another subsidy-linked scheme is generally not eligible unless the applicable provisions permit relaxation or otherwise specify eligibility.
• Existing units can be considered for assistance for expansion.
• Applicants who have already repaid loans under specified earlier Government schemes such as PMRY, REGP, PMEGP and CMEGP may be considered on production of the required No Dues Certificate and fulfilment of the applicable conditions.
• Generally, CMRY assistance is restricted to one loan, existing or new, per family.

Financial Assistance

Goa Chief Minister's Rojgar Yojana finances eligible projects through a combination of DITC Share Capital, EDC Term Loan and the applicant's own contribution.

Maximum Project Cost

Project Funding

Interest Rebate

Under CMRY-2023, 75% of the interest, equivalent to 6% per annum, on the EDC Term Loan and DITC Share Capital can be credited to the beneficiary's loan account as an interest rebate, subject to the prescribed conditions. The rebate is subject to the beneficiary's entitlement and reimbursement of the amount by the Government as per the applicable norms.

• The beneficiary must pay EMIs regularly.
• The financed unit must remain fully operational.
• The rebate is calculated on the amount actually disbursed.
• The subsidy is eligible on the fixed assets and current assets funded under the scheme.
• If the loan is pre-closed within 3 years from the first date of disbursement, the interest rebate already extended may be reversed and debited to the loan account.
• If the financed unit is found to be non-operational, the interest rebate already extended may be reversed and debited to the loan account.
• If the rebate has been extended because of misrepresentation or miscalculation, the applicable amount becomes recoverable as prescribed.

Repayment and Security

Repayment Terms

Security Requirements

The loan is secured through a first charge by way of mortgage or hypothecation of the fixed and current assets. Additional collateral and guarantee requirements depend on the loan amount.

The security required for the loan depends on the amount of assistance you receive. In simple terms, EDC may require a personal guarantor and, for higher loan amounts, property as security.

• Eligible third-party guarantors may include Government employees, employees of Government corporations, autonomous bodies, Government-aided and other institutions controlled by the Government of Goa, persons with taxable income of at least ₹5 lakh for the preceding three years and take-home salary commensurate with the EMI, regular employees of reputed companies who have worked for more than 10 years, and persons owning suitable unencumbered immovable property in Goa.
• The guarantor should not be a defaulter with any financial institution or bank and should have suitable capacity to service the loan.
• Proposals of up to ₹1 lakh may be considered by the Task Force Committee based on the genuineness of the applicant and project, supported by an affidavit or self-declaration confirming that the required clearances have been obtained or are in the process of being obtained from the competent authorities.

Disbursement of Loan

Once the loan is sanctioned and the required formalities are completed, the assistance is disbursed according to the approved project and prescribed procedure.

• The loan is disbursed directly to suppliers on the basis of proforma invoices for machinery, furniture and furnishing, working capital, vehicles and other approved items.
• The supplier is required to provide an undertaking in the prescribed format confirming that the items or vehicle will be delivered as specified in the proforma invoice.
• Physical verification of the assets acquired under the loan is carried out.
• Furniture and furnishing are subject to valuation as prescribed.

Default in Repayment

• If the borrower fails to repay the loan amount and applicable interest according to the repayment schedule, the outstanding amount may be recovered from the borrower or guarantor under the applicable laws.
• Recovery may be undertaken under provisions including the Goa Public Monies (Recovery of Dues) Act, 1986, Land Revenue Code, applicable provisions of the SFC Act, SARFAESI Act and the Recovery of Debts Due to Banks and Financial Institutions/DRT framework, along with any other applicable law.
• No interest rebate is payable on defaulted EMIs. The rebate may resume after the defaulted EMIs are paid, subject to the applicable conditions and for the eligible balance/fresh EMIs.

Required Documents

Applicants should keep the required documents ready before submitting the application. The exact documents may vary according to the applicant, business activity, loan type and security requirements.

• School Leaving Certificate or qualification certificate
• 15-year Residence Certificate
• Aadhaar Card
• PAN Card
• Election Card, where applicable
• House Tax Receipt
• Self-declaration in the prescribed format
• Professional Driving Licence/badge or business assurance recommendation letter for vehicle loans, wherever applicable
• Quotations or proforma invoices from authorised suppliers
• Required NOCs, permissions and licences for the proposed activity
• Project report for financial assistance of ₹10 lakh or more
• Guarantor's Aadhaar Card, PAN Card and Election Card, where applicable
• ITR for the preceding three years where required for a guarantor
• Salary slip where the guarantor is a Government employee
• Notarised property ownership documents where property security is required for loans above ₹6 lakh
• NOC from the lessor in the prescribed EDC format and latest House Tax Receipt in the lessor's name where the premises are taken on rent

Steps to Apply

Applicants who wish to avail of assistance under CMRY-2023 should carefully complete the prescribed application process and keep the relevant documents and project details ready. The application is submitted to EDC Limited for scrutiny and further processing.

1. Obtain the prescribed CMRY application form from EDC Limited. The application form is priced at ₹100.
2. Provide the required details of the proposed business, including the nature of the activity, estimated project cost and project funding.
3. Obtain quotations or proforma invoices for the machinery, equipment, vehicle or other assets proposed to be financed.
4. Arrange the required certificates, NOCs, permissions, licences and other supporting documents applicable to the applicant and proposed project.
5. Complete the application form and submit it to EDC Limited along with the prescribed non-refundable processing fee.
6. EDC examines the application and supporting documents. The proposed project may also undergo appraisal and physical verification wherever required.
7. After scrutiny and appraisal, the eligible proposal is considered by the competent authority or Task Force Committee for sanction.
8. Once the assistance is sanctioned, the applicant must complete the prescribed legal, security and guarantee formalities.
9. The beneficiary must complete the prescribed entrepreneurship training before disbursement, unless the training is exempted or made optional by the Task Force Committee.
10. After the required formalities are completed, submit the applicable supplier invoices and other disbursement documents. The sanctioned assistance is then released according to the prescribed disbursement procedure.

Second Loan for Expansion: Beneficiaries who have already availed of a CMRY loan may also be considered for a second loan to expand their existing unit within 3 years, subject to the prescribed project cost limits and other conditions of the scheme.

Application Fee

Note: The processing fee is non-refundable. 50% is payable when the application form is submitted and the remaining 50% after sanction of the loan.

Training

The scheme provides for compulsory entrepreneurship training of up to 3 days after the loan is sanctioned but before disbursement. The Task Force Committee may, on a case-to-case basis, exempt the beneficiary from the training or make it optional.

Important Terms & Conditions

• Only economically viable and legally permissible activities are covered.
• Activities involving alcohol and tobacco are excluded.
• Projects without fixed assets are not eligible.
• Working capital is restricted to 40% of the project cost.
• Cost of land cannot be included in the project cost.
• Commercial vehicle assistance is subject to the self-driven requirement.
• A project report is required for financial assistance of ₹10 lakh or more.
• Takeover of an existing loan is not permitted.
• CMRY assistance is generally restricted to one loan, existing or new, per family.
• Existing units and applicants who have repaid specified earlier Government scheme loans may be considered with the required No Dues Certificate.
• The applicant must not be a defaulter to the specified banks or financial institutions.
• The sanctioned amount must be disbursed within the prescribed period for eligibility for the applicable interest rebate.
• The financed unit must remain operational for continuation of the applicable interest rebate.
• Pre-closure within the prescribed period may result in reversal of the interest rebate already extended.
• If the unit becomes non-operational, the interest rebate already extended may be reversed.
• Misrepresentation or miscalculation resulting in an incorrect interest rebate can lead to recovery of the applicable amount.
• The beneficiary must use the assistance only for the purpose for which it was sanctioned.
• Default in repayment can result in recovery from the borrower or guarantor under the applicable recovery laws.

Important Links

• EDC Limited Official Website
• Directorate of Industries, Trade & Commerce, Goa
• Goa Chief Minister's Rojgar Yojana Guidelines
• CMRY Application Form
• Guarantor's Form
• Self Declaration From

Contact Details

EDC Limited (Economic Development Corporation Limited)

• Address: EDC Limited, 1st Floor, EDC House, Dr. A.B. Road, Panaji, Goa
• Phone: 08322224510
• Email: [email protected]
• Departmental Coordination: Directorate of Industries, Trade & Commerce, Government of Goa
• Loans Related Information Contact Details