The HP Ex-Servicemen Corporation has been established in the year 1979 by the Himachal Pradesh Government vide H.P. Ex-Servicemen Corporation Act,1979 (As Amended vide Amendment and Validation Act,1984). The Corporation started its working in the year 1981. The main aim of the Corporation is to provide for the welfare and economic upliftment of the Ex-servicemen of the State. The Corporation is providing loan under self-employment schemes through the Nationalized banks. The loanee has to arrange 75% of loan amount through the bank and 10% is provided by the Corporation as Margin Money loan @ 7% interest up to the maximum limit of Rs. 1,00,000/-. The remaining 15% amount is to be spent by the loanee himself. The Corporation is also providing 2.5% Interest Subsidy on the bank loan.