Stand Up India Scheme aims to promote entrepreneurship among the people of scheduled castes, scheduled tribes, and women. If you are applying for a loan at the Standup India scheme, you must be thoroughly aware of the process involving the submission of loan applications.
Suppose you consider taking a loan through Stand up India scheme for work shed or EDP (Entrepreneurship Development Programme). In that case, you will find your trainee borrower at a DIC (District Industry Centre).
You may wonder what a District Industry Centre is, what schemes come under it, what roles it plays, and whether you are eligible for it or not. This article will mainly focus on these four points so that you do not face any troubles while applying for your loan.
About district industry centre (DIC)
The purpose of the District Industry Centre is to promote the cottage and village industries of a certain district. DICs have been in operation since 1978 and help entrepreneurs get a loan for MSME (Micro, Small, and Medium Enterprises) at the district level.
The Centre decided to establish District Industry Centres to increase the development rate of industries. During the 1980s, the Centre wished to shift its focus from the agricultural department to the industrial department to ensure smooth economic development of the country.
DIC is funded through the State and does not require any contributions from external sources.
District Industry Centres suggest suitable schemes as per the development of different industrial segments in the district, prepare accurate reports, and provide all the machinery and credit to the entrepreneurs.
A DIC has a General Manager at the Joint Director level and the Managers of handloom, economic investigation, credit, and development, along with an Administrative assistant to assist them. The General Manager gives their reviews to evaluate and analyze the schemes.
Schemes under District Industry Centre
DICs have the following five schemes to assist the purpose and goal of DIC and provide a loan for MSME. These schemes are central sector schemes and centrally sponsored schemes.
- PMEGP (Prime Minister’s Employment Guarantee Program): This scheme came into effect in 2008. The role of this scheme is to help the educated but unemployed people of rural and urban areas by providing them employment opportunities. The nodal agency for PMEGP in KVIC (Khadi and Village Industries Commission).
The loan under this scheme has two parts. One part is the 90-95% of the amount given by banks in the form of loans, and the other part is 5-10% as the applicant’s share in the business, service, or industry sector.
- DIC loan scheme: This scheme is available in towns and rural areas having a population of less than 1 lakh and capital investment less than INR 2 lakhs. It supports the self-employed and the small unit sectors of the rural areas. The Small Scale Industries Board and Village Industries identify such units and assist them with a loan for MSME.
The margin money of the loan depends on the category of the entrepreneur. The margin money for the general category will be 20% of the total investment, or INR 40,000, whichever is lesser. The margin money for SC/ST category will be 30% of the total investment, or INR 60,000, whichever is lesser.
- Seed money scheme: This scheme assists the self-employed engaged in self-employment ventures or skilled wage employment. The project cost for the loan amount under the scheme is now INR 25 lakhs. The seed money assistance offered for projects up to INR 10 lakhs will be 15%. However, the seed money assistance offered will be 20%. 75% of the project cost will be in the form of a bank loan, while the assistance limit will be INR 3.75 lakhs.
- District awards scheme: As the name suggests, this scheme enhances the confidence of young and achieving entrepreneurs by honouring them with district-level awards. The District Advisory Committee selects such entrepreneurs and awards them on Vishwakarma Jayanti each year.
- Entrepreneurship development training programme: This scheme trains educated but unemployed people to encourage self-employment ventures or skilled wage employment. The three training programs under this scheme are the Entrepreneurship Introductory Programme (Udyojakata Parichay Karyakram), the Entrepreneurship Development Training Programme (12 Day residential), and the Technical Training Programme (12 Days to 2 Months non-residential).
Eligibility criteria for district industry centre
The eligibility criteria for various schemes under DIC have different eligibility criteria. You can check the criteria for the schemes individually to know whether you are eligible or not for the loan for MSME. The requirements for a DIC loan for MSME are:
- Applicants must be above 18 years of age.
- Applicants must have passed the 8th standard.
- The manufacturing project must be above INR 10 lakh, and the cost of service or business sector must be more than INR 5 lakhs.
However, the common documents required to get a District Industry Centre certificate are Aadhar Card, name and address of your business, bank account details, date of initiating the business, the main activity for the business, type of business, number of employees (if any), investment of business, and the account number.
Roles of DIC
The sole aim of District Industry Centres is to promote and develop industries of the respective states. The Department of Commerce and Industry established these DICs in all the states. Along with DICs, there are SDICs (Sub-District Industries Centres) that help assist them. Some of the roles of DIC are:
- DIC assists the DIC programs and ensures that the schemes are functioning properly.
- DIC provides young entrepreneurs with a single-window clearance system to solve their issues instantly.
- DIC promotes the growth and development of different industrial sectors in rural areas and towns.
- DIC arranges loans for MSME under the Stand Up India Scheme for entrepreneurs and blooming business owners.
- DIC aids self-employed people with machinery and equipment to assist with their business or enterprises.
- DIC also conducts surveys frequently of their schemes and programs to check their implementation and functioning.
Loans can be obtained from various banks that provide flexible features for returning and interests. Ziploan has proved to do so, over the years and has one of the easiest procedures to procure an MSME loan.
Frequently Asked Questions
The ‘District Industries Centre’ (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage, and village industries in a particular area and to make available to them all necessary services and facilities at one place.
The District Industries Center conducts a survey of the existing traditional and new industries and raw materials and human resources.
DIC is the primary registering centre. Registration is voluntary and not compulsory. Two types of registration are done in all States. First, a provisional registration certificate is given. And after commencement of production, a permanent registration certificate is given.
Joint Director is the head of the District Industries Centre. The post of Joint Director is of the rank of Special Deputy Commissioner (Revenue). The Joint Director is assisted by Deputy Director/ Assistant Director, Industrial Promotion Officer, and Industrial Extension Officer at the taluk level.
The entrepreneurs who are engaged in the manufacturing of products and/or provide services should register with District Industrial Centre registration. The district industrial centre registration is governed by the Micro, Small and Medium Enterprises Act, 2006.
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