Pandit Deendayal Gramodyog Rojgar Yojana is an additional interest subsidy scheme implemented by the Uttar Pradesh Khadi and Village Industries Board (UPKVIB). Under this scheme, eligible rural entrepreneurs who have already received financial assistance under the Prime Minister’s Employment Generation Programme (PMEGP) can avail an additional interest subsidy of up to 13% per annum for three years on the eligible loan amount. This support can make the bank loan effectively interest-free during the subsidy period, subject to the applicable lending rate and scheme conditions. For official updates and guidelines, visit upkvib.gov.in.
Uttar Pradesh Pandit Deendayal Gramodyog Rojgar Yojana Highlights | |
|---|---|
| Scheme Name | Pandit Deendayal Gramodyog Rojgar Yojana |
| Named After | Pandit Deendayal Upadhyaya |
| Implementing Agency | Uttar Pradesh Khadi and Village Industries Board (UPKVIB) |
| Department | Khadi and Village Industries Department, Government of Uttar Pradesh |
| Scheme Type | Additional Interest Subsidy Scheme (ब्याज उपादान) |
| Applicable For | PMEGP loan beneficiaries whose loans have already been sanctioned and disbursed |
| Covered PMEGP Agencies | District Industries Centre (DIC), KVIC and UPKVIB |
| Maximum Interest Subsidy | Up to 13% per annum |
| Subsidy Calculation | On the remaining eligible loan amount after deducting PMEGP margin money and the beneficiary’s own contribution |
| Major Benefit | The loan may become effectively interest-free for the first three years, subject to the applicable bank interest rate |
| Subsidy Period | Three years from the date of the first loan disbursement |
| Subsidy Release | Every six months through NEFT/RTGS |
| Claim Settlement Time | Within 15 days after receipt of a complete claim |
| Beneficiary Intimation | Within 7 days after the subsidy payment |
| Coverage Area | Rural areas across Uttar Pradesh |
| Priority Areas | Purvanchal and Bundelkhand districts |
| Priority Projects | ODOP (One District One Product) based enterprises |
| Not Eligible | Beneficiaries already receiving interest subsidy under any other Central or State Government scheme |
| Recovery Provision | Interest subsidy may be recovered if the unit is closed within three years, as per scheme guidelines |
| Application Process | Online |
| PMEGP Portal | kviconline.gov.in |
| UPKVIB Portal | upkvib.gov.in |
| Gramodyog Samadhan Cell | 1800-120-7699 (Toll Free) |
| UPKVIB Contact | 0522-2208321, 0522-2208310 |
| ceoupkvib@gmail.com | |
Introduction of Uttar Pradesh Pandit Deendayal Gramodyog Rojgar Yojana: A Brief Insight
Receiving financial assistance under the Prime Minister’s Employment Generation Programme (PMEGP) helps entrepreneurs establish new businesses, but repaying the bank loan along with regular interest during the initial years can still place a financial burden on newly established rural enterprises. To reduce this burden and improve the survival of PMEGP-funded units, the Government of Uttar Pradesh introduced the Pandit Deendayal Gramodyog Rojgar Yojana. The scheme is implemented by the Uttar Pradesh Khadi and Village Industries Board (UPKVIB) under the Khadi and Village Industries Department.
Unlike conventional loan schemes, the Pandit Deendayal Gramodyog Rojgar Yojana does not provide a fresh loan. Instead, it offers an additional interest subsidy (ब्याज उपादान) to eligible entrepreneurs whose projects have already been financed under PMEGP through the District Industries Centre (DIC), Khadi and Village Industries Commission (KVIC), or UPKVIB. The objective is to strengthen rural enterprises, encourage sustainable self-employment, support ODOP-based businesses, and promote industrial development in rural areas, especially in Purvanchal and Bundelkhand.
Under the scheme, the Uttar Pradesh Government provides an interest subsidy of up to 13% per annum on the eligible outstanding loan amount after adjusting the PMEGP margin money subsidy and the beneficiary’s own contribution. The subsidy is available for a maximum period of three years from the date of the first loan disbursement. Where the applicable bank interest rate is within the prescribed limit, the entrepreneur may effectively pay no interest during the subsidy period. The subsidy is released every six months through NEFT or RTGS directly to the financing bank for adjustment against the beneficiary’s loan account.
To avail this benefit, the enterprise must already be financed under PMEGP, operate in a notified rural area of Uttar Pradesh, remain functional, and not be receiving interest subsidy under any other Central or State Government scheme. Applications and claim processing are carried out online through the UPKVIB portal, while District Gramodyog Officers examine claims and forward eligible cases for subsidy release in accordance with the scheme guidelines.
Entrepreneurs who have not yet obtained a PMEGP loan should first explore the Prime Minister’s Employment Generation Programme (PMEGP), which provides a margin money subsidy on eligible project loans. Those looking for direct financial assistance without first availing PMEGP may also consider the Mukhyamantri Gramodyog Rojgar Yojana, another UPKVIB scheme that offers bank loans with interest subsidy for eligible rural entrepreneurs.
You can also explore other self-employment, MSME and village industry schemes on our List of Uttar Pradesh Government Schemes page.
Benefits Provided to Eligible Beneficiaries
Eligible PMEGP beneficiaries who fulfil the scheme conditions receive the following benefits under the Pandit Deendayal Gramodyog Rojgar Yojana:
Interest Subsidy (ब्याज उपादान)
- Additional interest subsidy of up to 13% per annum on the eligible outstanding loan amount after deducting the PMEGP margin money subsidy and the beneficiary’s own contribution
- Where the applicable bank interest rate is within the prescribed limit, the subsidy may make the loan effectively interest-free for the first three years
- Interest subsidy becomes applicable from the date of the first loan disbursement
- Subsidy is available for a maximum period of three years
- The subsidy amount is released every six months through NEFT/RTGS directly to the financing bank for adjustment in the beneficiary’s loan account
- District Gramodyog Officer processes eligible subsidy claims within 15 days after receiving complete documents
- The beneficiary and the financing bank are informed about the subsidy release within 7 days of payment processing
How the Interest Subsidy is Calculated
| Component | Details |
|---|---|
| Total Project Cost | Project cost approved under PMEGP |
| Less: PMEGP Margin Money Subsidy | 15% to 35% of the project cost, as applicable under PMEGP |
| Less: Beneficiary’s Own Contribution | 5% to 10% of the project cost |
| Eligible Loan Amount | Interest subsidy of up to 13% per annum is calculated on this amount |
| Subsidy Period | Three years from the date of the first loan disbursement |
Combined Benefits with PMEGP
- PMEGP provides an upfront margin money subsidy of 15% to 35% of the approved project cost
- Pandit Deendayal Gramodyog Rojgar Yojana provides an additional interest subsidy of up to 13% per annum on the eligible loan amount
- Together, both schemes reduce the entrepreneur’s financial burden by lowering the initial investment requirement as well as the interest payable during the first three years of the project
Eligibility Conditions Required to be Fulfilled
Applicants must satisfy the following eligibility conditions to receive the interest subsidy under the Pandit Deendayal Gramodyog Rojgar Yojana:
- The enterprise must have been established under the Prime Minister’s Employment Generation Programme (PMEGP) and the loan should have already been sanctioned and disbursed.
- The unit must be located in a rural area of Uttar Pradesh as defined under the Uttar Pradesh Panchayat Raj Act.
- Only those PMEGP units approved during the current financial year are eligible to receive the subsidy for that year.
- The applicant must be a permanent resident of Uttar Pradesh.
- PMEGP loans sanctioned through any of the authorised implementing agencies are eligible, including the District Industries Centre (DIC), Khadi and Village Industries Commission (KVIC), and Uttar Pradesh Khadi and Village Industries Board (UPKVIB).
- Preference is given to enterprises established under the One District One Product (ODOP) initiative.
- Projects located in the Purvanchal and Bundelkhand regions receive priority during implementation.
Who Is Not Eligible
- Entrepreneurs already receiving an interest subsidy under any other Central or State Government self-employment scheme.
- Units established in urban areas.
- Units that are non-operational or permanently closed.
- Beneficiaries who have misused the loan amount or deliberately defaulted on loan repayment.
- Projects that have not been completed in accordance with the approved project proposal.
Documents Required to be Attached
Pandit Deendayal Gramodyog Rojgar Yojana is an interest subsidy scheme linked with PMEGP. After the PMEGP unit becomes operational, the financing bank submits the interest subsidy claim to the concerned District Gramodyog Officer. For processing the claim, the following documents are required:
- Aadhaar Card of the beneficiary entrepreneur
- PAN Card
- Forwarding letter issued by the sponsoring agency (DIC, KVIC or UPKVIB)
- Loan sanction letter issued by the financing bank
- Updated statement of the enterprise’s loan account
- Term Deposit Receipt (TDR) related documents
- Interest subsidy claim in the prescribed format
- Inspection report of the unit submitted by the concerned bank branch manager
- Workplace verification certificate along with a geo-tagged photograph of the entrepreneur at the production unit
After receiving the complete claim and all supporting documents, the District Gramodyog Officer scrutinises the case and processes the interest subsidy. As per the scheme guidelines, the approved subsidy amount is released within 15 days through NEFT/RTGS and credited directly to the beneficiary’s loan account.
How Beneficiaries Can Apply to Avail the Benefit of this Scheme
Pandit Deendayal Gramodyog Rojgar Yojana is not an independent loan scheme. It provides an additional interest subsidy only to eligible rural units that have already received financial assistance under the Prime Minister’s Employment Generation Programme (PMEGP). The complete process is explained below:
Step 1: First apply for a PMEGP project through the official PMEGP portal at kviconline.gov.in. After your project is approved, the financing bank sanctions and disburses the loan through the concerned implementing agency, namely KVIC, DIC or UPKVIB.
Step 2: Establish the approved village industry unit and commence commercial operations as per the sanctioned project report. Ensure that the unit remains operational and complies with all PMEGP conditions.
Step 3: The financing bank, along with the District Gramodyog Officer, carries out verification of the unit. During this stage, the bank prepares the required inspection report and collects all documents prescribed under the scheme, including the workplace verification certificate and a geo-tagged photograph of the production unit.
Step 4: After successful verification, the financing bank prepares the interest subsidy claim in the prescribed format and forwards it, along with all supporting documents, to the concerned District Gramodyog Officer. The claim is generally submitted every six months for reimbursement of eligible interest.
Step 5: The District Gramodyog Officer scrutinises the claim and verifies the eligibility of the beneficiary and the unit. After completing the prescribed checks, the claim is processed as per the scheme guidelines.
Step 6: Once approved, the interest subsidy is released through NEFT/RTGS directly to the beneficiary’s loan account maintained with the financing bank. As per the guidelines, complete claims are processed within 15 days, and both the beneficiary and the bank are informed after the payment is released.
Important Conditions
- Interest subsidy is available for a maximum period of 3 years from the date of the first loan disbursement under PMEGP.
- The subsidy is calculated only on the eligible outstanding loan amount after adjusting for the PMEGP margin money subsidy and the beneficiary’s own contribution.
- If the unit is closed, the loan is misutilised, or any scheme condition is violated within the prescribed period, the interest subsidy may be discontinued or recovered in accordance with the scheme guidelines.
- For assistance, beneficiaries may contact the nearest District Gramodyog Officer, visit upkvib.gov.in, or call the Gramodyog Samadhan Cell on 1800-120-7699.
PMEGP + Pandit Deendayal Gramodyog Rojgar Yojana – How Both Schemes Work Together
The following illustration explains how a rural entrepreneur in Uttar Pradesh can benefit by combining PMEGP with the Pandit Deendayal Gramodyog Rojgar Yojana. This example is for understanding purposes only and assumes that the outstanding loan amount remains unchanged throughout the subsidy period.
| Component | Illustrative Amount |
|---|---|
| Total Project Cost | Rs. 20,00,000 |
| PMEGP Margin Money Subsidy (25% – General Category Rural) | Rs. 5,00,000 |
| Entrepreneur’s Own Contribution (10%) | Rs. 2,00,000 |
| Bank Loan | Rs. 13,00,000 |
| Assumed Bank Interest Rate | 11% per annum |
| Annual Interest on Loan (Illustrative) | Rs. 1,43,000 |
| Interest Subsidy under Pandit Deendayal Gramodyog Rojgar Yojana | Up to Rs. 1,43,000 per year |
| Interest Payable by Entrepreneur | Nil (if the applicable bank interest remains within the 13% subsidy limit) |
| Approximate Interest Saving in 3 Years | Around Rs. 4.29 lakh |
In this illustration, the entrepreneur receives an upfront PMEGP margin money subsidy of Rs. 5 lakh. In addition, the Pandit Deendayal Gramodyog Rojgar Yojana reimburses the eligible bank interest for up to three years. Depending on the outstanding loan balance and the applicable bank interest rate, the combined financial benefit can exceed Rs. 9 lakh over the project period.
Note: This is only an illustrative example for ease of understanding. The actual interest subsidy depends on the sanctioned project cost, PMEGP margin money, outstanding loan balance, applicable bank interest rate, repayment schedule, and the provisions of the official scheme guidelines.
Important Links Available
- Uttar Pradesh Khadi and Village Industries Board (UPKVIB) Official Portal
- Pandit Deendayal Gramodyog Rojgar Yojana Official Scheme Page
- PMEGP Online Application Portal
- Khadi and Village Industries Commission (KVIC) Official Portal
- Government of Uttar Pradesh Official Portal
Contact Details in Case of Help Needed
If you need any assistance regarding the Pandit Deendayal Gramodyog Rojgar Yojana or the interest subsidy process, you may contact the Uttar Pradesh Khadi and Village Industries Board (UPKVIB) through the following details:
- Organisation: Uttar Pradesh Khadi and Village Industries Board (UPKVIB)
- Address: 8, Tilak Marg, Lucknow – 226001, Uttar Pradesh
- Phone: 0522-2208321, 0522-2208310, 0522-2208313, 0522-2207004
- Fax: 0522-2208243
- Email: ceoupkvib@gmail.com
- Gramodyog Samadhan Cell (Toll-Free): 1800-120-7699
- District-Level Assistance: Contact the concerned District Gramodyog Officer for guidance regarding PMEGP linkage, interest subsidy claims, document verification, and other scheme-related queries.
Frequently Asked Questions (FAQs)
Q. What is Pandit Deendayal Gramodyog Rojgar Yojana?
Ans. Pandit Deendayal Gramodyog Rojgar Yojana is an additional interest subsidy scheme implemented by the Uttar Pradesh Khadi and Village Industries Board (UPKVIB). It provides an interest subsidy of up to 13% per annum for a maximum period of 3 years on eligible PMEGP-financed rural units. It is not an independent loan scheme.
Q. Is this a separate loan scheme?
Ans. No. This scheme does not provide a separate loan. It only offers additional interest subsidy to eligible entrepreneurs whose projects have already been financed under the Prime Minister’s Employment Generation Programme (PMEGP).
Q. Is obtaining a PMEGP loan mandatory?
Ans. Yes. A PMEGP loan must be sanctioned and disbursed before an entrepreneur can avail the interest subsidy under the Pandit Deendayal Gramodyog Rojgar Yojana.
Q. How much interest subsidy is available?
Ans. Eligible beneficiaries can receive an interest subsidy of up to 13% per annum on the eligible outstanding loan amount after adjusting for the PMEGP margin money subsidy and the beneficiary’s own contribution, subject to the scheme guidelines.
Q. For how many years is the subsidy provided?
Ans. The interest subsidy is available for a maximum period of 3 years from the date of the first loan disbursement under PMEGP.
Q. Which PMEGP beneficiaries are eligible?
Ans. Eligible rural units financed under PMEGP through the District Industries Centre (DIC), Khadi and Village Industries Commission (KVIC), or Uttar Pradesh Khadi and Village Industries Board (UPKVIB) can avail the benefits of this scheme, provided all prescribed conditions are fulfilled.
Q. Is the scheme available for urban enterprises?
Ans. No. The scheme is applicable only to eligible rural village industry units established within Uttar Pradesh.
Q. How is the interest subsidy claim submitted?
Ans. The financing bank prepares the prescribed interest subsidy claim along with the required documents and forwards it to the concerned District Gramodyog Officer for verification and processing.
Q. How long does it take to release the interest subsidy?
Ans. As per the scheme guidelines, complete claims are normally processed within 15 days after all required documents are received. After processing, the beneficiary and the financing bank are informed about the payment.
Q. What happens if the unit is closed before completing three years?
Ans. If the unit is closed, the loan is misutilised, or any condition of the scheme is violated during the subsidy period, the interest subsidy may be discontinued or recovered in accordance with the provisions of the scheme.
Q. Which entrepreneurs receive priority under the scheme?
Ans. The scheme gives preference to eligible PMEGP units established in the Purvanchal and Bundelkhand regions. Projects aligned with the One District One Product (ODOP) initiative are also given priority as per the scheme guidelines.
Q. Where can I get help regarding this scheme?
Ans. Applicants may contact the nearest District Gramodyog Officer, call the Gramodyog Samadhan Cell on 1800-120-7699, or visit the official UPKVIB website at upkvib.gov.in for assistance.
Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.