1. The Scheme: The scheme is sponsored by Director General of Resettlement DGR Ministry of Defence, Government of India to provide equity assistance to ex-servicemen for starting small scale industries including transport and other service industries for self employment.

2. Eligibility: Ex-servicemen as defined by Government of India and sponsored by Director General of Resettlement after screening by the Committee constituted for the purpose will be eligible for assistance. Widows of Ex-servicemen and disabled service personal are also eligible if the Screening Committee considered these persons. The age of the personnel applying for assistance shall not exceed 60 years.

3. Project Cost: The total project cost under this scheme shall not exceed Rs.15.00 lakhs.

4. Promoters Contribution: The promoters contribution shall be a minimum of 10% of the project cost.

5. Soft Seed capital: SIDBI provides soft seed capital assistance upto 15% of project cost. Soft seed capital is not considered in respect of transport vehicles except gas tanker, tipper vehicles and pay loaders.

6. Debt Equity Ratio: The debt equity ratio shall be 2 : 1 at the maximum.


7.Repayment: Soft / seed capital shall be repayble over a period of five years including initial moratorium of upto 2 years. In case of assistance for transport operators, the repayment period will be 4 1/2 years including maximum grace period of 6 months.

8. Collateral Security: Collateral security to the extent of 25% of loan amount shall be offered.