Chief Minister Sarothi Startup Loan Scheme Assam

Chief Minister Sarothi Startup Loan Scheme Assam

If you ask any business enthusiasts about the main problem that they face during setting up the trade, they will say that it is getting the required funds. Without the capital, the entrepreneur will not be able to set up the establishment. One such scheme happens to be the Sarothi Startup Loan. The program is a joint venture of the central and the State Government in the state of Assam. All the activities of the scheme will be managed by the Industries & Commerce Department.

The main objective of Sarothi Startup Loan is to encourage the young and novice business enthusiasts in getting their ventures started by aiding them with a sum of 10 lakhs. The amount will be provided by the government for investing in the business start-up. To make it more lucrative for the young businessmen, the government will also offer a subsidy on the interest rate of the loan repayment.

Stand Up India Loan Scheme and MUDRA Loan Scheme have been support by central government . Here you can read about All Central Government Schemes.

What is Eligibility for Sarothi Startup Loan In Assam

After getting the general information about the loan scheme, it is time to take a closer look at the groups, which will be eligible to avail the benefits of the program. The following are the eligibility criteria of applying for the scheme:

  1. The central and the state government will extend a helping hand toward the innovative and unique business ideas. All enthusiasts who want to set a new business venture will be able to apply for the monetary aid.
  2. All the newly formed MSME units will also be eligible under the credit scheme. These ideas must be able to give the government departments the confidence that they will be able to make the required profit for repayment of the loan.
  3. Under the guidelines of the credit scheme, the government will give preference to those applicants who have opted for and successfully completed any skill development program. It will give the applicants an edge over the other non-trained persons.
  4. For getting the monetary aid from the central government, the applicants will have to submit the necessary documents, which will support their claim of not being a defaulter under any other loan scheme.

Key Features of Sarothi Startup Loan

The following the main and salient features of the credit scheme:

  1. Under the scheme, the central government and the state authority of Assam will provide the selected applicants with a sum of money for getting started with their business venture. The sum of money will not be more than 10 lakhs.
  2. The applicant will have to provide 15% of the total money that will be required for setting up the entire project. The equity will assist in the setting up of the business.
  3. The financial institute, from where the credit will be sanctioned, will be according to all the set guidelines. 5% of the total credit amount will be given to the creditor as the subsidy under the scheme.
  4. The applicant will have to activate a savings bank account in the Chandmari Branch of the AGVB. Interest Subsidy at 5% will be debited by the bank authority after the completion of per quarter in a year.
  5. The applicant will not have to worry about the payment of any documentation or processing fee. All fees, associated to these will be taken care of by the DIC. If the bank has to deduct any amount as per the fee guidelines, it will be done automatically from the savings account.
  6. All the branches of the selected banks will have to submit their application to the head office. The head office will then provide them with the green signal for making the payment to the selected candidates.
  7. The candidates will have to pay the interest rates, for the repayment of the loan, as per the calculations done by the bank authorities, depending on the amount that the applicant has taken.

For improving skills in youth, Mantri Kaushal Vikas Yojana has been started by Central. Here you can read Reward Under Mantri Kaushal Vikas Yojana .

Loan Amount and duration

The maximum amount that an applicant can get under the scheme is 10 lakhs. The sum will assist them in the investing towards the establishment of the venture. The applicant will have to repay the entire credit amount, along with the interest amount, within a period of five years.

Interest Rate

The interest rate will directly depend on the current rates that the respective bank is charging on the loan amounts. This rate is not fixed. According to the new directives of the

Bank/RBI/NABARD, the interest rate may be changed. The applicant will not have to worry about the repayment of the loan for a term of 10 months. The time period will be calculated from the date when the payment has been meted out to the applicant.

Central also supports students in education by the loan facility . You can read here Interest Rate in Vidyalakshmi Loan Scheme.

Repayment Facility and penalty

The applicants will be able to avail the advantage of repaying the credit amount in EMIs. The applicant will have to make sure that the pay the EMI every month without fail. In case they fail to make the payment, the bank will charge them a penalty at 2% on a yearly basis.

For improving skills in youth, Mantri Kaushal Vikas Yojana has been started by Central. Here you can read Reward Under Mantri Kaushal Vikas Yojana .

Security

As per the guidelines of any credit system, the Sarothi Startup Loan also has certain rules regarding the security against the credit amount.

  1. Hypothecation of all the machinery, moveable and immoveable assents, the establishment, the entire stock, finished and semi-finished goods, and all other that will be done with the money obtained from the banks is necessary for security purpose.
  2. The applicant will not have to deposit any money in the bank for security purpose. It will put less burden of the applicant who has received the credit. They will be able to invest more money in the venture.
  3. The applicant will have to get the assets, marked under hypothecation, insured in the proper manner. The applicant will have to make sure that the insurance policy does not get lapsed. For this, the creditor will have to pay the yearly premium regularly without fail.
  4. The amount that will be sanctioned by the AGVB will not be considered under the CGTMSE program.

Application Form

The application form can be collected branch of the respective bank or it can be downloaded from the official website. He/she will have to paste a recently clicked passport sized photograph. The candidate will have to write down their name, residential address, contact details, father’s or husband’s name, and birth details. The form will require the academic details of the person and any skill training that the applicant has.

The form will also have to be filled with the details of the venture that the applicant is willing to start. There are many sections, associated with the plans, expenditures, purchase of machines required, estimated profits and others that need to be filled in. The person will also have to mention the trade license and other important codes.

Required Documents

The interested applicants will have to provide the following documents while applying for the credit scheme:

  1. Id Proof : The first thing that the applicant will have to provide is the proper proof of identity. They will have to attach the signed and attested photocopy of the voter ID card, the PAN card, or the Aadhar card. It will assist the authorities in identifying the candidates.
  2. Address Proof : Apart from the ID proof, the applicant will also have to provide attested copies of the residential proof. They can do so by providing the landline telephone, electricity, water supply bill. The Aadhra card will also be accepted as it contains the residential details.
  3. Caste Certificate: If the applicant belongs to Schedule Cast, Schedule Tribe or Other Backward Classes, then proper official certificates will have to be attached with the application form. It will facilitate in getting more facilities from the government.
  4.  An Application about start-upThe application will have to be duly supported by the details of the venture that the person wants to start. He/she will have to provide estimated expenditure and profit amounts to support the claim that the venture will be lucrative.
  5.  Udyog Aadhar Card : Along with these, the applicant will also have to provide the attested copies of the trade license and the Udyog Aadhar Card. The person will also have to give the documents, which will be able to give the authorities a clear idea about their training.
  6. Passport PhotoLast but not the least; the applicant will have to provide a copy of a recently taken passport photograph. It will give the authorities a way of verifying the ID of the applicant.

How to apply of the loan

It is important that the candidate will have to fill in the application form in the proper manner. The following steps must be followed for the submission and approval of the application form:

  1. All the interested candidates will have to reach the office of the General Manager of the DICC and submit the application form for verification, assessment and final approval. It is mandatory that the applicants attach the required documents with the application form.
  2. It is the responsibility of the DICC to select the AGVB both branch wise and district wise. The AGVB headquarters will be directed by the DICC for proceeding towards the step of finalizing the list of selected candidates and verifications.
  3. All the applications, which have been submitted, will be scrutinized by the DICC. Once the analysis has been completed, the applications will be sent for the approval of the District Level Committee.
  4. DLC will take the help of the appointed Branch Managers of all the AGVB nodal branches. They will have the difficult duty of the selecting the candidates who will be given the credit amount for starting their business.
  1. After the assessments have been done, all the information will be sent to the Assam GraminVikash Bank branches. The next phase of the verification and the assessment will be done in the respective departments.
  2. The approval or rejection of the applications will be done by the Branch Manager of the respective branches. The decision will have to be finalized within a span of 30 days only.
  3. The DLC has been instructed under the guidelines to approve only a certain number of applications from each of the districts. It will give a chance to all entrepreneurs based in even the remotest parts of the state of Assam.
  4. All the applications, which will be rejected, will have to be sent back to the respective agencies. The reasons why these applications have been rejected will have to be highlighted in the proper manner.

Banks under the scheme

Assam GraminVikash Bank or the AGVB is the main bank that will have to collect, verify and sanction the loans to the selected candidates. The funds will be sanctioned by the state government and the AGVB will be in charge of sending the funds to the other branches from where the selected applicants will be able to collect the cash for aiding the business venture.

State Government Roles and Responsibility

The following part will give you a clear idea about the role that the state government is playing in the successful implementation of the scheme:

  1. The state government will have to take the responsibility of selecting the unique and innovative business ideas, which have been hatched by the residents of the state of Assam. The state government will take it up for the development of the business section in the state.
  2. The funds and the associated calculation of the subsidy amount will be done in the EscrowAccount. The activities will be maintained by the Guwahati Branch of the Assam GraminVikash Bank.
  3. After all the verifications have been done by the respective departments and the headquarters, the state government will be notified. Once the final selection of the candidates has been made, the documents will be sent to the branches.
  4. The Industries & Commerce department of the State Government of Assam will have to be notified by the Branch Managers about the details of the selected candidates. After carefully analyzing the venture plans, the money will be sanctioned for allotment.

Unemployment is the biggest issue in our country, So many schemes have been started by government . Please read about them here

  1. Suryamitra Scheme In Uttar Pradesh
  2.  Unemployment Allowance Scheme In Himachal Pradesh
  3. Apni Gaddi Apna Rozgar Yojana In Punjab.
  4. Har Ghar Toh Ikk Captain Scheme

With the successful implementation of the credit scheme, the state government of Assam will be able to provide the much needed encouragement to the business classes, based in the state. With the monetary assistance, the government will be able to strengthen the financial as well as the lifestyle of the people. With the establishment of the business platform for the budding entrepreneurs in the state, the authority will be able to put a stop on the migration of the youngsters to other states. With set-up of new businesses, the employment opportunities in the state will also go up. Schemes like this will come as a boon to the younger generations of entrepreneurs.

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