Jammu and Kashmir Self Employment Scheme

The Government of Jammu and Kashmir has introduced the Jammu and Kashmir Self

Employment Scheme to create self-employment opportunities in the State. As part of this scheme, the Government provides financial assistance for the entrepreneurs to start a new business. The Government implements this scheme in consultation with Ladakh Autonomous Hill Development Council (LAHDCK), Kargil. In this article, we will look at the Jammu and Kashmir Self Employment Scheme in detail.

Objective of the Scheme

The use of implementation of the Jammu and Kashmir Self Employment Scheme is listed as follows:

To create maximum employment opportunities in Jammu and Kashmir and to solve the growing unemployment in rural areas of Jammu and Kashmir
To empower the youth of Jammu and Kashmir
To provide and support self-employment in the state
To provide entrepreneur development training

Eligibility Criteria

The eligibility criteria to obtain the

financial assistance under the Jammu and Kashmir Self Employment Scheme are given here:

The general category applicant age should be 18–42 for availing the funds and 5 years relaxation is provided for women and persons belonging for SC/ST/Ex-Serviceman/physically handicapped.
The applicant should be the holder of middle-class pass certificate
The permanent resident of Jammu and Kashmir can apply for the scheme
Candidate should be unemployed to get the financial amount
The candidate should not have drawn any loan from any bank or financial institutions for setting up of venture of his/her own

Financial Assistance Details

The Government provides Jammu and Kashmir Self Employment Scheme funds from the District plan, LAHDC on account of Margin Money, Capital Subsidy and Interest Subsidy in favour of the applicant entrepreneur who has established their venture for income-generating.

Project Cost

The candidates selected by the Jammu and Kashmir Self Employment Scheme can establish the units with the following upper ceiling of project costs.

The entrepreneur can get Rs.2 lakhs for a retail trader under this scheme.
The business-related to Industry/Service can get assistance up to Rs.3.00 lakhs
For Joint Venture (minimum two people) can get the Rs.10.00 lakhs for their business

Credit Limit

The units can be established as per the following pattern:

Sl.No	Credit Limit
1	Loan from Bank	75%
2	Margin Money	15%
3	Contribution of the Applicant	5%
4	Capital subsidy	5 % (Maximum of Rs.7500)

Interest Subsidy

As part of the Jammu and Kashmir Self Employment Scheme, the entrepreneurs who establish the units are entitled to interest subsidy in the following pattern.

Sl.No	Interest Subsidy
1	During the first 6 months	100%
2	One year	75%
3	One and a half year	50%

Documents Required

The documents required for the Jammu and Kashmir Self Employment Scheme is listed as follows:

Matriculation certificate
Qualification Certificate
Proof of residence
Affidavit to effect that the applicant has not received a loan from any bank or financial assistance
Copy of Project Profile
Certificate from Gazetted officer that the applicant is Unemployed
Identification Certification from a Gazetted officer

Application Procedure

The application procedure for the Jammu and Kashmir Self Employment Scheme is explained in detail below:

The applicant has to submit an application form in prescribed format to avail the loan under the Self Employment Scheme.
After inviting application from all the interested eligible persons, the selection committee will interview to assess the technical feasibility and economic viability of the project.

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The selection of the applicant for the Self Employment Scheme will be done by the District Task Force Committee (DTFC), headed by the concerned District Development Commissioner.
The selected applicant will be sponsored to the various banks for sanction of the loan under the Self Employment Scheme.
Once the cases are sanctioned, margin money and subsidy will be released by the employment department into the applicant's accounts.
After the units are established, the interest subsidy will be released periodically into the loan accounts.

Note: The applicant has to return the Margin Money or Interest loan after five years.

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Frequently Asked Questions

Common questions about Jammu and Kashmir Self Employment Scheme.

The Jammu and Kashmir Self Employment Scheme is a government initiative aimed at creating self-employment opportunities in the state. It provides financial assistance to entrepreneurs for starting a new business venture.

To be eligible for the scheme, the applicant must be a permanent resident of Jammu and Kashmir, aged between 18-42 years (with relaxation for certain categories), holding at least a middle-class pass certificate, and be unemployed without any previous loan or financial assistance for self-employment.

The scheme provides margin money, capital subsidy, and interest subsidy to the selected entrepreneurs. The project cost limit varies from Rs. 2 lakhs for retail traders to Rs. 10 lakhs for joint ventures.

The funds are distributed as per the following pattern: 75% as a loan from the bank, 15% as margin money, 5% as the applicant's contribution, and 5% as capital subsidy (maximum of Rs. 7,500).

The interest subsidy offered under the scheme is 100% for the first six months, 75% for the next six months, and 50% for the following six months.

The documents required include matriculation and qualification certificates, proof of residence, an affidavit stating no previous loan or financial assistance, a project profile, an unemployment certificate, and identification certification from a gazetted officer.

The selection process involves submitting an application form, followed by an interview to assess the technical feasibility and economic viability of the project. The final selection is done by the District Task Force Committee (DTFC).

The selected applicants are sponsored to various banks for loan sanctioning. Once the loan is sanctioned, the margin money and subsidy are released by the employment department into the applicant's account.

Yes, the margin money or interest loan received under the Jammu and Kashmir Self Employment Scheme must be returned after five years.

The Jammu and Kashmir Self Employment Scheme is implemented by the Government of Jammu and Kashmir in consultation with the Ladakh Autonomous Hill Development Council (LAHDCK), Kargil.