Frequently Asked Questions

What is maximum project cost allowed under J&KREGP?
Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit. However, under rural and public transport sector, the upper project/ unit cost shall be admissible to the upper ceiling of Rs.20 lakhs.

Whether cost of land includes in the project cost?

How much Margin Money (Govt. Subsidy) admissible?

Who are the beneficiaries?
An individual.

Which are the financial agencies?
J&K bank, J&K Grameen Bank, J&K State Cooperative Bank and its subsidiaries. Any other Bank approved by the Apex JKREGP Monitoring Committee.

How the capital expenditure loan / Cash Credit Limit be utilized?
Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M.M. and not less than 75% of the utilization of the sanction limit on an average.

Where the beneficiary has to submit his/her application/ Project?
Beneficiary can submit his/her application/Project online on KVIB web portal

What is Village Industry?
Any Village Industry (except those mentioned in the negative list) located in the Rural Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment for head of a full time artisans or worker does not exceed Rs.1.00 lakh in plain area and Rs.1.50 lakhs in hilly areas.

What is rural area?
Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000.

What is Age limit?
Any adult beneficiary between age group of 18-40 years is eligible for financing under J&KREGP.

What are the main criteria of project?
It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one.

Whether EDP training is compulsory?
Before MM Claim through J&KREGP eportal, EDP training of 10 working days is compulsory.

Whether collateral security is mandatory?
As per RBI guidelines the project costing upto Rs.10.00 lakhs under JKREGP loans are free from collateral security.

Whether an entrepreneur can submit more than one project?

What is the definition of family?
Husband and spouse.

Whether existing unit can avail funds under JKREGP ?
No, only new unit.

What is lock in period for Govt. Subsidy?
3 years.

Can project be financed jointly from two different sources (Bank/Financial Institutions)?
No, it is not eligible.

How much own contribution to be deposited?