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Agriculture Directorate:
SEMFEX SCHEMES

SEMFEX-II & III SCHEMES

SEMFEX-II (From Arms to Farms) Scheme

This Scheme has been promoted with the assistance of National Bank for Agriculture and Rural Development (NABARD). It provides refinance to Banks for financing for development of agriculture and allied activities, such as minor irrigation, farm mechanisation, mushroom cultivation, dairy, poultry, sheep and goat rearing, fisheries, plantation/ horticulture, Agro-processing units including food processing, forestry, wasteland development, etc. In addition, NABARD supports bio-gas, agro-industries, small scale industries, tiny, cottage and village industries, handloom and handicrafts and service sector activities in rural areas. Under the Scheme, Soft loan Assistance for Margin Money (SLA-MM) will be available to all ex-servicemen borrowers irrespective of their rank and income to undertake all schemes under farm and non-farm sectors. Refinance assistance is also available to individual borrower upto Rs 10 lakh for acquisition of a maximum of 2 transport vehicles. Ex-servicemen Transport Corporation/Registered Society/Institution can be formed to acquire a maximum of 30 transport vehicles under the SRTO Scheme.

SEMFEX-III Scheme (Sena Se Gramodyog)

This Scheme has been launched to help rehabilitate the ex-servicemen and widows to undertake rural industries. This Scheme is operative in collaboration with the Khadi and Village Industries Commission. There are 116 rural industries including service sector activities (Appendix 'A') which have been identified for financing to ex-servicemen/widows. This is a most lucrative Scheme. The ex-servicemen will be considered as a special target group and their loan cases will be sanctioned on preferential basis. The facility of margin money grant (subsidy) will be at the rate of 30% of the project cost upto Rs 10 lakh for the projects above Rs.10 lakh and upto Rs.25 lakh the rate of margin money grant will be 30 % of Rs. 10 lakh plus 10 % of the remaining cost of the project. The borrower would be required to contribution only 5% of the project cost as margin money and the remaining 95 % of the project cost would be sanctioned by the KVIC/KVIB/Banks. All the schemes within the purview of KVIC will be financed through the State Khadi and village Industries Board or Scheduled Commercial Banks including Sainik Sahakari Bank Ltd., Satara. In case of Bank finance under Margin Money Scheme , the KVIC has already placed a lumpsum deposit of margin money in advance with the Corporate Office of each bank or a Nodal Branch designated by the bank in savings bank account in the name of KVIC (Appendix 'B'). The lending institutions would be fully responsible for recovery of consortium bank credit. Free training facilities are also available at the KVIC/KVIB training centres.

Eligible ex-servicemen/widows desirous of getting loans will have to apply to the concerned Zila Sainik Board/Rajya Sainik Board (ZSB/RSB) on the prescribed form. Five copies of the application form along with the project reports are required to be submitted by the borrowers. Guidelines regarding application format for various disciplines and level of manufacturing/service units, they are amended suitably from State to State to take care of some local needs. But in general a common format in this regard is available with ZSBs/RSBs/KVIBs/KVICs/Banks/DGR.

SEMFEX SCHEMES FOR EX-SERVICEMEN AND WIDOWS

SEMFEX II	SEMFEX III
* The Scheme is formulated jointly by the DGR and NABARD	* The Scheme is formulated jointly by the DGR and KVIC.
* The Scheme is operative in rural areas. No restriction of location for agro/ food processing units	* The Scheme is operative in rural areas. Mother units and Charmshilpa show-room can be set-up even in urban area.
* Loan is available for agriculture, allied activities and to set up tiny, cottage and village industries.	* Loan is available for 116 village industries and service activities.
* Soft Loan Assistance for Margin Money is available for all schemes under Non-Farm Sector (other than SRTO scheme) and certain Farm Sector activities.	* 30% subsidy is available upto Rs. 10 lakhs and above this 10% of the remaining project cost.
* No upper ceiling for loans under farm sector.	* Loan is available for individual upto Rs.10 lakhs and Rs. 25 lakhs for institutions / co-operatives.
* Non-farm sector can be assisted upto SSI limit	* KVIC Margin Money Scheme is applicable to scheduled commercial banks
* No loan limit to set up agro/ food processing units.	* Margin Money requirement is only 5% of the project cost.
* No Margin Money required for loan upto Rs.10,000/- under farm sector and above this ranges 5 to 25%.	* KVIC has placed lump-sum deposit of margin money in advance with the Banks to provide grant/ subsidy.
* No margin money required for loan upto Rs.50,000/- under non-farm sector and above this ranges 5 to 25%	* Purchase of transport van as part of overall project is permitted under the scheme
* No upper age limit to set-up units.	* No upper age limit to set-up units.
* Interest on term loan ranges from 12 to 13.5% p a upto Rs.2 lacs and above this as per bank's discretion.	* Interest rate for village industries is @ 13.5% p a upto Rs. 25 lakhs.
* Loan is available through Banks	* Loan is available through KVIB/ KVIC/ Banks
* An individual can undertake even an independent project under SRTO Scheme. Loan ceiling is Rs. 10 lakhs per borrower.	* Loan is available for expansion of the project.
* Application along with project report needs to be submitted to ZSB/RSB.	* The KVIC has earmarked 10% of the State allocated budget for ex-servicemen through KVIB.
* Screening Committee is constituted at ZSB/RSB.	* Screening Committee is constituted at ZSB/RSB.
* Repayment of loans is based on income generation and decided as per project.	* Repayment of loan will be in 8 years including one year moratorium.
* Repayment of Soft Loan Assistance is along with the term loan.	* KVIC Margin Money is provided as subsidy/grant.

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