One of the components of the National Urban Livelihoods Mission, Self-employment Program of Urban Poor has been launched with a vision of poverty reduction in India, especially in urban areas. Through this scheme, the government of India provides economic support to individuals or groups of people belonging to urban poor category and assisting them in establishing profitable self-employment ventures or various micro industries. These self-employment opportunities are entirely based on an individual’s skills, training, intelligence, aptitude, and regional aspects.
Age: Individuals applying for the scheme should be minimum 18 years old.
Qualification: Under this scheme, no minimum qualification criteria is implied. However, skills and training are provided to prospective candidates for micro-enterprise establishment, operations, and management.
Group members: As per the eligibility criteria, a group-enterprise should comprises 3 or more members. In one group, there should be a minimum of 70% of the members belonging to urban poor families. However, only one individual per family can be a part of the group of 3 or more.
Women: Under the Self-employment Program of Urban Poor, there should be 30% or more of women beneficiaries. The scheme offers additional benefits for SC/STs and those from other backward classes.
For establishing a group enterprise, minimum 7% rate of interest is applicable on a bank loan.
The maximum budget of the scheme is Rs. 2 lac for each micro-enterprise established, whereas that for each group enterprise is Rs. 10 lac. Various community organizers of the scheme and professionals from various urban local bodies recognize and register urban poor as potential beneficiaries. Applicants/beneficiaries can directly approach urban local bodies or their organizer for guidance. Moreover, banks registered under the scheme recognize potential beneficiaries.
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