Long Term Loan for SC Spinning Mills Maharashtra
Overview
The Long Term Loan to SC Co-operative Spinning Mills under the Special Component Plan is a Maharashtra state scheme. It provides long-term financial assistance to cooperative spinning mills run by Scheduled Caste communities to support their operations, machinery upgradation, and expansion plans.
Objective
The scheme aims to strengthen the economic base of SC communities engaged in the textile and spinning sector. By providing affordable long-term credit, it helps SC cooperatives sustain their mills and generate employment for members.
Benefits
- Long-term loans with extended repayment periods
- Concessional interest rates under the Special Component Plan
- Funding for machinery purchase, renovation, and working capital
- Supports job creation within SC cooperative mills
- Strengthens the cooperative structure of SC entrepreneurs
Eligibility
- Cooperative spinning mills registered under the Maharashtra Cooperative Societies Act
- All or majority of members must belong to Scheduled Caste communities
- Mill must be operational or in a position to resume operations with loan support
- Must comply with applicable cooperative and textile sector regulations
Exclusions
- Non-cooperative private spinning mills are not eligible
- Mills where SC members do not constitute the majority
- Cooperatives with unresolved audit objections or financial irregularities
Application Process
- The cooperative submits an application to the Maharashtra State Textile Cooperative Federation or concerned district office
- A project report outlining loan utilization is required
- Application is evaluated by a state-level committee
- Approved loans are sanctioned through state cooperative banks
- Repayment schedule is drawn up based on the mill’s projected income
Documents Required
- Cooperative society registration certificate
- List of SC member shareholders
- Audited financial statements for the last three years
- Project report for loan utilization
- Bank account details of the cooperative
- Board resolution authorizing the loan application
