Government Sponsored scheme: DAY-NULM/ (SJSRY)

The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was launched on 01.12.1997 after subsuming the earlier three schemes for urban poverty alleviation, namely Nehru Rozgar Yojana (NRY), Urban Basic Services for the Poor (UBSP), and Prime Minister’s Integrated Urban Poverty Eradication Programme (PMIUPEP).

The Swarna Jayanti Shahari Rozgar Yojana (SJSRY) was renamed the National Urban Livelihoods Mission (NULM) in 2014-15. In 2016-17, the NULM was renamed the Deenadayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM).

The key objective of the Scheme was to provide gainful employment to the urban unemployed or underemployed through the setting up of self-employment ventures or the provision of wage employment. The scheme provides supporting skill development and training programmes to enable the urban poor to have access to employment opportunities opened up by the market or undertake self-employment; and the target population under SJSRY/DAY-NULM is the urban poor – those living below the poverty line, as defined by the Planning Commission from time to time.

The Self Employment Program (SEP) of DAY-NULM focuses on providing financial assistance through the provision of interest subsidies on loans to support the establishment of Individual & Group Enterprises and Self-Help Groups (SHGs) for the urban poor.

Educational Qualifications and Training Requirements:

No minimum educational qualification is required for prospective beneficiaries under this component. However, where the identified activity for micro-enterprise development requires some special skills appropriate training must be provided to the beneficiaries before extending financial support.

Pattern of Financial Assistance:

The financial assistance available to the urban poor in setting up individual and group enterprises will be in the form of Interest subsidies on bank loans. Interest subsidy, over and above 7% rate of interest will be available on a bank loan for setting up of individual or group enterprises. An additional 3 percent interest subvention will be provided to all Women Self Help Groups (WSHGs) who repay their loan in time.

Age: The prospective beneficiary should have attained the age of 18 Years at the time of applying for a loan.

Project Cost (PC):

The Maximum unit Project Cost for an individual micro-enterprise is ₹ 2,00,000 (₹ Two Lakhs).

A Self Help Group (SHG) member of an SHG constituted under DAY-NULM or a group of urban poor for self-employment can avail the benefit of subsidized loans under this component from our bank. The norms/specifications for group-based micro-enterprise loans are as follows:

Type of Loan Facility:

Banks may extend financing to individuals for capital expenditure through term loans and working capital loans through cash credit. Banks may also extend Composite Loans consisting of the Capital Expenditure and Working Capital components, depending upon individual borrower’s requirements.

Age: All members of the group enterprise should have attained an age of 18 years at the time of applying for a bank loan.

Project Cost (PC):

The group will be eligible for a maximum loan of Rs. 2 Lakh per member or Rs. 10 Lakh, whichever is lower.

Eligibility Criteria: The group enterprises should have a minimum of Three (3) members with a minimum of 70% of the members from urban poor families. More than one person from the same family should not be included in the same group.

Beneficiary Identification:

Community Organizers (COs) and professionals from the Urban Local Body (ULB) identify potential beneficiaries for the National Urban Livelihoods Mission (DAY-NULM). A house-to-house survey for the identification of genuine beneficiaries, with a focus on slums and low-income settlements, will need to be conducted. Model Formats for the slum survey, household survey, and livelihoods survey and guidelines will be communicated by the Ministry of Housing & Urban Poverty Alleviation. In addition to the economic criteria of the Urban Poverty Line, noneconomic parameters will also be applied to identify the urban poor for receiving benefits.