The aim of SEMFEX-I Scheme is to encourage and assist eligible ex-servicemen to take up self- employment service ventures in Tiny, Small Scale Industry and Small scale Service and Business [Industry Related] Enterprises. Under the scheme, training in entrepreneurship is also provided to them facilitating success of the project.

With effect from 01 April 1993 , Debt Equity Ratio for loan upto Rs. 10 lakhs is 3:1 meaning thereby:

In case of loans above Rs 10 lakhs and upto 15 lakhs the Debt Equity Ratio is 2:1 meaning thereby:

Central and State Subsidy, if any, will not be taken into account while financing the project. Such subsidy and other concessions, if available, may be utilized for meting the working capital requirements.

will be provided in the form of loan. The amount of assistance will be limited to the amount required to meet the gap in equity after taking into account the Promoter’s Contribution to the project cost subject to a maximum of 15 per cent of the total project cost or Rs. 2.25 lakhs per project whichever is less.

The normal term loan required for the project is to be sanctioned by SFC/twin-functioning IDC. The term loan will not exceed Rs.11.25 lakhs per project.

During moratorium period nominal rate of 1% p.a. by way of service charge is payable annually. After the moratorium period, nominal rate of 6% p.a. is payable on half-yearly basis. Interest rate on Soft Seed Capital Assistance will be subject to annual reviews during currency of the assistance, if the financial position and profitability of the unit permits a higher rate of interest not exceeding the applicable rate of nominal term loan will be charged.

Rate of interest on term loan would depend upon the amount of loan. The rates are subject to change. The present interest rate structure under the scheme is as under:

(I) Up to & inclusive of Rs.25000/-                12% p.a.

(ii) Over Rs. 25,000/- & upto Rs 2 lakhs         13.5% p.a.

Over Rs. 2 lakhs as may be decided by the FCs/Twin/function IDCs' depending upon their risk perception in each proposal.

Ex-servicemen, war widow of ex-Servicemen and disabled Service personnel, sponsored for assistance under the scheme by DGR, after screening by a Committee constituted for the purpose, are for assistance. The applicants should be:

(a) Up to 60 years of age
(b) Registered with Zila Sainik Board (ZSBs). Where no ZSBs have been set up, the applicant should be registered with Rajya Sainik Board (RSB). Persons who are not registered as above will be required to do so before their applications are accepted;
(c) Should not have any outstanding loan under other Schemes.

Ex-servicemen forming partnerships with one or more ex-Servicemen or one or more non-ex-servicemen would also be eligible for assistance under the Scheme. However, if the non-ex-serviceman is a partner, his contribution should not exceed 25% of total promoter’s contribution required for the project and effective management of the project should vest with the ex-Servicemen.

Retired personnel of Para-military forces such as BSF. Assam Rifles, GREF etc. are not covered at present under the definition of ex-Servicemen and are, therefore, not eligible to apply for assistance under the scheme.

Contact

Officer In charge, Small Industries Development Bank of India (SIDBI)
Jammu BO
SIDBI, OB-26, Grid Bhawan,
Ground Floor
Rail Head Complex

Jammu
Jammu Kashmir - 180012
Email: neerajsri@sidbi.in

Managing Director,
State Financial Corporation, J&K (SFC)
Durga Nag, Dalgate, Srinagar.
Phone-0191-2500716/2500606/2501634

Sehkari Bhawan
Rail Head Complex, Jammu
Phone-240740/2471179/2475581/2471772

Director Sainik Welfare Board,
Department of Sainik Welfare, Jammu