Long Term-Loan to SC Co-op Spinning Mills under Special Component Plan
By Department of Social Justice and Special Assistance, Government of Maharashtra
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Quick Answer
A long-term loan covering 50% of project cost for Scheduled Caste cooperative spinning mills in Maharashtra, from the Department of Social Justice.
- Funding amount
- Varies
- Funding type
- Debt
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Maharashtra
About this loan
Scheduled Caste cooperative spinning mills in Maharashtra can get a long-term loan covering 50% of the total project cost. The scheme is run by the Department of Social Justice & Special Assistance, Government of Maharashtra, under the Special Component Plan.
The loan can fund new facilities, modernisation or expansion, including machinery and technology. It is meant for spinning mills owned by members of the Scheduled Caste community.
The mill must collect at least ₹80,00,000 or 5% of the project cost as member shares. Its project must be enumerated by recognised financial institutions or banks, which also check the project report. These include Maharashtra Industrial & Technical Consultancy Organization Ltd. (MITCON), Agriculture Financial Corporation and Dattajirao Technical Institute. The application process is offline.
Eligibility
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Grant providers
Provider
Department of Social Justice and Special Assistance, Government of MaharashtraMaharashtra · India
Benefits & Funding
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
This scheme provides a long-term loan covering 50% of the total project cost for Scheduled Caste cooperative spinning mills. This financial assistance is crucial for these mills to undertake significant development projects, including setting up new facilities, modernizing existing infrastructure, or expanding production capacities. The loan helps reduce the upfront financial burden on the cooperative, enabling them to invest in necessary machinery, technology, and operational enhancements. By supporting these vital investments, the scheme aims to bolster the economic stability and growth of SC-owned enterprises, leading to enhanced productivity, job creation within the community, and overall economic development in the region.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Long Term-Loan to SC Co-op Spinning Mills undergo a multi-stage selection process. Initially, the submitted project reports are subject to enumeration and thorough vetting by recognized financial institutions or banks such as MITCON, Agriculture Financial Corporation, or Dattajirao Technical Institute. This crucial step ensures the project's financial viability and technical feasibility. Following this, the application, along with the project details and financial contributions (including member shares), is reviewed by the Textile Department, Government of Maharashtra. Upon approval and sanction of the required share capital, the application is then forwarded to the Assistant Commissioner at the District Social Welfare Office. The Social Welfare Department conducts a final assessment and is responsible for sanctioning the loan, ensuring compliance with the Special Component Plan's objectives.
Application Process
- 1
Obtain Application Form
Visit the Textile Department, Government of Maharashtra, to get the prescribed application form.
You - 2
- 3
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- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
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- 2
See the questions before you start
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- 3
Line up your documents
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- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary objective of this loan scheme?
The main objective is to promote the development and growth of spinning mills owned by Scheduled Caste members in Maharashtra by providing financial assistance in the form of a long-term loan covering 50% of the project cost.
Who is eligible to apply for this loan?
Cooperative spinning mills owned by Scheduled Caste members in Maharashtra are eligible. They must also meet specific financial and project enumeration criteria.
What are the key financial requirements for eligibility?
Applicants must collect a minimum of ₹80,00,000/- or at least 5% of the total project cost as member shares. This ensures a commitment from the cooperative members towards the project.
How is the project evaluated for the loan?
The project submitted by the spinning mill must be enumerated and thoroughly checked by recognized financial institutions or banks. These institutions assess the viability and financial soundness of the project report.
What is the application process for the loan?
The application process is offline. Applicants need to obtain the prescribed application form from the Textile Department, fill it out, attach mandatory documents, and submit it. Following initial approval, the application is forwarded to the District Social Welfare Office for final loan sanction.
Are there any specific deadlines for application?
The scheme mentions that applications should be submitted within a 'prescribed period, if any'. While a specific date is not provided, applicants are advised to inquire about current application windows with the Textile Department.
Sources
Data on this page is compiled from official program and provider references.
