Group Loan Interest Reimbursement Scheme

Group Loan Interest Reimbursement Scheme

Group Loan Interest Reimbursement Scheme

The Government of Maharashtra has launched Group Loan Interest Reimbursement Scheme to encourage the unemployed candidates for self-employment. The Annasaheb Patil Financial Backward Development Corporation has introduced this scheme as part of Chhatrapati Rajaram Maharaj Entrepreneurship and Skills Development Campaign. Under Group Loan Interest Reimbursement Scheme, Government provides interest subsidy on loans taken by candidates from Economically Weaker Sections. In this article, we will look at  Group Loan Interest Reimbursement Scheme in detail.

Objective of the Scheme

The objective of the Group Loan Interest Reimbursement Scheme is listed as follows:

  • To develop socio-economic development of economically backward communities
  • For developing the economically weaker sections of the state
  • Making the scheme available for employment and self-employment opportunities.

Eligibility Criteria

Eligibility criteria to obtain a loan under the Group Loan Interest Reimbursement Scheme is listed as follows:

  • Applicant should be a resident of Maharashtra
  • The beneficiary should be linked his her Bank Account with Aadhaar Card
  • Applicant’s age limit should be of 18 to 45 years (The maximum age limit for women and women business group is excluded.
  • The annual income should be in the range (competent authority as defined by the certificate issued by the limit)
  • The group should not be liable to any bank or financial institution.
  • One person can only take advantage of the scheme once
  • lIf you are applying for Divyanga, certificate of Divison is mandatory

Note: To apply for this scheme beneficiary group members should not have availed of this or any other corporation plan before.

Eligibility Criteria for Entity

The eligibility criteria of entities for Group Loan Interest Reimbursement Scheme is explained in detail below:

Condition for Group Loan Interest Reimbursement Scheme

To avail the benefit of this scheme, the age limit of men in the group should be 50 years and women should be 55 years. This condition of the age applies to FPOs established under the Women Savings Group and the Companies Act, 2013, are engaged in agricultural and ethnic business. It does not apply to Divya groups. Each beneficiary member of the group should be economically backward.

The Government will bear the total annual income of the beneficiary from time to time in the non-affirmative limits which is the certificate of competent authority that is within the limit of Rs 8 lakhs or annual income of the family as per the ITR, and the net taxable income will not be accepted.

Interest Rate

The interest rate for a maximum period of 5 years and the maximum interest rate is Rs. 12%.

Eligibility Certificate (LOI)

On successful verification of application, the beneficiary will be provided with an eligibility certificate (LOI) of the respective group under this scheme. The LOI received is required to be present at the time of taking the loan from the bank.

LOI Validity

The LOI will be valid for three months. The period of renewal of LOI is 30 days after the expiry of validity, the revalidation of the eligibility certificate will be made. In case the LOI is invalid for any reason, then for renewal, the applicant needs to pay Rs. 500.

Documents Required

Documents required for Group Loan Interest Reimbursement Scheme are listed below:

For User Registration

  • Aadhar card – Requiring to upload the photo of applicant members and Aadhaar numbers
  • Resident proof -Must be attached any of the following
  • Updated electricity bill
  • Latest gas connection book
  • Rescheduled telephone bill
  • The resident certificate is given by Tehsildar
  • Copy of ration card
  • Applicant’s passport size photograph

For Applying to Scheme

Family Annual Income Certificate of group members

  • ITR of all group members
  • All group member’s Aadhar Details
  • Company Registration copy

For Update Loan Detail

  • Loan Disbursal Proof
  • Bank Sanction letter
  • Bank EMI Schedule
  • Project Report

For Claiming Interest

  • Bank Statement with proof of payment
  • Interest Debit in ODC a/c and payment

Group Loan Interest Reimbursement Scheme Application Procedure

The application procedure for Group Loan Interest Reimbursement Scheme is explained in detail below:

Step 1: Access the home page of Mahaswayam Portal. Select the Entrepreneurship option from the menu list. Upon clicking on that, you will be redirected to the new page.

Image 1 Group Loan Interest Reimbursement Scheme
Image 1 Group Loan Interest Reimbursement Scheme

Step 2: For new user registration, select the registration option. If you are a registered member of Employment / Skills, use the same credentials for login.

Image 2 Group Loan Interest Reimbursement Scheme
Image 2 Group Loan Interest Reimbursement Scheme

Step 3: The new user registration application will be displayed. Provide personal information as per the details furnished in the Aadhar card.

Image 3 Group Loan Interest Reimbursement Scheme
Image 3 Group Loan Interest Reimbursement Scheme

Step 4: System support will verify the details provided and send an OTP to the registered mobile number. Authenticate the mobile number using the OTP.

Step 5: Fill out all the other details and password to complete your registration process. On successful verification, you will be provided with user credential for login to portal.

Step 6: Enter the user name and password, by clicking on the login option. You can proceed with the application.

Step 7: Once you login to the portal, click on the Group Loan Interest Refund Scheme. The link will navigate to a new page.

Step 8: Select the concerned district from the drop down menu, Click on the Apply option.

Image 4 Group Loan Interest Reimbursement Scheme
Image 4 Group Loan Interest Reimbursement Scheme

Step 9: The Group Loan Interest Reimbursement Scheme application form will be displayed. Provide all mandatory details in the application form.

Step 10: After furnishing the details, click on the save button for uploading the documents. Upload all essential documents as listed above.

Step 11: By clicking on the submit button, the information will be saved, and the application will be forwarded to the concerned department.

Step 12: Once the online application is filed, the status of application whether the relevant group loan is eligible for a refund of interest or any errors in it will be updated within seven working days.

Get LOI

After this, beneficiary groups will be eligible to receive the eligibility certificate (LOI) of the respective group under this scheme. As mentioned above, the LOI applicant group received is required to be present at the time of taking a loan from the bank, and the LOI will be valid for three months.

On successful verification, the system will generate an eligibility certificate (LOI). By clicking on the print option, you can get the hard copy of LOI.

Apply for Loan

Once the LOI is issued, you can apply for a bank loan. Refer the below-attached document to know about the list of banks made with MOU / AGREEMENT with Corporation:

mou

The concerned bank will verify the LOI and other documents. Once all the information & documents furnished, the bank will sanction the loan and disbursed to the applicant.

Update Loan details

After receiving the loan, the applicant needs to update the loan details in the Mahaswayam portal. Using the user credentials, you can update the information.

  • Disbursal Proof
  • Bank Sanction letter
  • Bank EMI Schedule
  • Project Report

Pay EMI

Once the loan is obtained, the applicant needs to pay the regular EMI.

Claim Paid Interest

Login to Mahamandal portal using the credentials and upload the necessary documents s described above to claim the paid interest. After verifying the details, the interest amount will be paid to Group bank account by the bank.

Repayment of the Interest

According to the bank’s lending rules, after repaying the interest amount by the bank, the corporation deposits the interest amount into Group bank account. Monthly refunds can be given if the monthly repayment is made weekly.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.