NULM General FAQ
What are the objectives of NULM?
NULM aims at alleviation of urban poverty in the country.
Which Cities/ Towns are presently covered under NULM?
The Mission is being implemented in all District Headquarters and other cities with population of 1 lakh or more.
What are the main features of NULM?
It focuses on organizing urban poor in self help groups, skill development for market-based employment and helping them to set up self-employment venture by ensuring credit on subsidized rate of interest. The scheme has multipronged approach to mitigate poverty in urban areas.
What are various components of NULM?
The following are the 7 components of NULM:
1) Social Mobilization and Institution Development(SM&ID)
2) Employment through Skills Training and Placement(EST&P)
3) Capacity Building and Training (CBT)
4) Self-Employment Programme (SEP)
5) Scheme of Shelter for Urban Homeless (SUH)
6) Support to Urban Street Vendors (SUSV)
7) Innovative and Special project(ISP)
Employment through Skills Training and Placement(EST&P)
What is the objective of ESTP?
Under this component urban poor can learn new skill or upgrade their existing skills free of cost.The program intends to fill the gap between the demand and availability of local skills by designing skill training programs as required by the market.
How it will help the beneficiaries?
It will help them in setting up self-employment ventures or secure salaried employment.
Self-Employment Programme (SEP)
What is the objective of SEP?
The urban poor who wish to set up their own self employment ventures/ micro-enterprises can avail bank loan on 7% rate of interest.
What is the loan limit for individuals and groups for setting up of micro enterprises?
An individual can be given bank loans for projects upto Rs. 2 lakh for setting up of individual micro enterprises and for a group of urban poor, bank loan is available for projects up to Rs. 10.00 lakh.
What benefits are available for SHGs under this component?
All the SHGs of urban poor can also avail bank loan on 7% rate of interest. An additional 3 percent interest subvention will be provided to all women SHGs who repay their loan in time. Thus, in case of timely repayment, effective interest rate would be only 4%.
Scheme of Shelter for Urban Homeless (SUH)
What is the objectives of SUH?
NULM also provides financial support to State Governments/ULBs for construction as well as operation & management of permanent shelter for urban homeless. The shelters constructed must be equipped with all other essential services so that the urban homeless in our cities live a dignified life.
Support to Urban Street Vendors (SUSV)
What is the support provided to Urban street vendors under NULM?
NULM aims at skilling of street vendors, support for micro-enterprises development, and their credit enablement. It also supports development of vendor market, vending zone & informal sector markets with infrastructure/civic facilities such as paving, water supply, solid waste disposal facility, lighting, storage space etc.