AMOUNT OF GRANT

• The maximum allowable cost for the project is 10 lakhs plus working capital, which cannot exceed 25% of the total cost.
• Banks should consider composite loans rather than term loans to meet working capital requirements. This is in addition to the recommended limit of Rs.10 lakhs.
• The subsidy, on the other hand, will be computed without taking into account the working capital component.
• Beneficiary contribution of 5% of total project cost.
• Bank credit is at a rate of 55%.
• Subsidy percentage: 40% of the total project cost