Uttar Pradesh Khadi & Village Industries Board

Government of Uttar Pradesh

CM Village Industries Employment Schemes

Loan Disbursement Interest Subsiby Redated Process

  1. (1) The district Village Industry Officer will collect the applications through personal contest with various institutions/ entrepreneurs/different Govt. Deptts. or through press release. The applications will be collected on a format as prescribed by Bank as possible. If application forms are not available easily, then the Board may use individual entrepreneurs application form, lateron the aplplication may be obtained on bank’s form.
  2. Thus the list of applications received by the District Village Industry Officer will be incorporated in a register and then made available to the all members of the constituted selection committee. In the meeting of selection committee selected application form will be sent to selected bank branches proposed by the entrepreneur.
  3. For identification of the entrepreneurs directives given in para 4, 5 & 6 will be followed.
  4. Concerned bank officer will incorporate the applications sent by the District Village Industry Officer in a register under the head of “Mukhya Mantri Gramodyog Rojgar Yojna” and will ensure the completion of sanction of loan and other formalities as time to time schedule fixed by RBI {Maximum 6 weeks} for the disposal of applications.
  5. The Branch Manager will give the information of sanction of loan to the District Village Industry Officer and to the beneficiary.
  6. If any application is to be rejected by the bank, the branch manager will inform its controlling officer with detailed information.
  7. The controlling officer of the branch will exmine such applications and if the application is rejected, the District Village Industry Officer will be informed alongewith sufficient cause of rejection by the controlling officer/branch manager. The power of rejection of application will be vested with the controlling officer of the branch. Bank branch will keep the record of rejection and sanction of each and every application.
  8. The loan amount will be disbursed by the banks after completion of sanction formalities and Bank branch will intimate the District Gramodyog Officer about the completion of present/loan disbursement.
  9. The interest will be charged in the account of entrepreneurs on six monthly basis according to rules, the details of bill will be submitted in due/copy to the District Village Industry Officer by the bank branch concerned on Annexure-B and C. After scrutiny of the bill the District Village Industry Officer will make payment to the branch through cheque/draft and will incorporate it in the register mentioned in para-11.
  10. Bank branch will adjust the cheque/draft in the account of entrepreneurs account. This process will be followed in every quarter/Half yearly after calculation of interest.
  11. The benefit of interest subsidy will not be given to the entrepreneurs under following conditions:
    1. If loan has been misutilised by the entrepreneur.
    2. If the entrepreneur has not completed the project and willingly commit mistake.
    3. If the account is declared default by the bank.
    4. If the unit is not making any production/service or closed.
    5. NOTE:- If the Industry is affected due to natural calamity or any accident the branch manager and District Village Industry Officer will conduct joint survey and on their recommendations the Head Office of the Board will decide about the providing of interest subsidy to the entrepreneur.

Additional Working Capital

If any unit is getting any large supply order or order for export and to fullfil this it needs additional working capital, in that case the bank will be considering to increase additional working capital/C.C.limit.

Awareness Traning Camp

To attract the beneficiaries towards the Mukhyamantri Gramodyog Rojgar yojna and with the objective to provide information about the scheme in the rural areas to the public, 01 percent of the interest subsidy amount sanctiond by the Government will be available and allocated for organizing awareness training camp.


For publicity of the scheme, putting hordings of the public places, printing of the phamphlates/handbills, advertising from radio and television etc. 01 percent of the interest subsidy amounts approved by the Government will be used for the publicity of the scheme.

Renovation Revival Of Units

Any unit established and financed earlier had been defunct or dead die to any natural disaster/ untimely accident or by any unavioidable reasons, then by the committee established at district level will trying to find out the causes and to renovate or revive the unit further decision regarding refinanceing to the unit will be considered and Interest subsidy will also be admisable as per the rules.

Monitoring And Evluation of Scheme

For successful running of the scheme and to judge the difficuluties faced by the units, hundred percent physical verification of the units will be done by the D.V.I.O., 20 percent by the Regional officers and 5 percent by the head quarter officials. Dispite this state monitoring and evaluation cell of Planning Department will also condut random survey and evaluation of the scheme from time-to-time. For monitoring and evaluation of the scheme, 01 percent of the total interest subsidy’s budget will be allocated and utilised.


If any unit missutilised the loan amount knowingly or as per the project of the unit, nither establishing nor and running successfully, in that conditions the whole amount of loan will be realize by the bank from the unit including the interest subsidy amount given by the Government. Realised amount of the interest subsidy will be kept on U.P.K.V.I.B. Head Office by opening an account and later re-utilised fully as per the requirement in this perview.10 percent of the amount realized by the bank or the amount of interest subsidy which ever is less will be given by the bank to the U.P. Khadi & Village Industries of Board.

sr.No. Title Size Language Data Time View More
1 ANNEXURE-A 1.73 MB English 24.08.2017 04:00pm pdf View More
2 ANNEXURE-B 1.73 MB English 24.08.2017 04:10pm pdf View More
3 ANNEXURE-C 1.73 MB English 24.08.2017 04:20pm pdf View More
4 ANNEXURE-D 1.73 MB English 24.08.2017 04:30pm pdf View More
Sr.No. Title Language Size Date Detail
1 Financial Progress (Financial year 2018-119, until March) Hindi 558 KB 22/04/2019 Detail
2 Physical Progress (Fiscal Year 2018-19, until 31st March) Hindi 12.5 MB 22/04/2019 Detail