Sarothi Start Up fund Assam is a financial assistance scheme for entrepreneurs which is being run by the state government of Assam. This is a new scheme called Chief Minister’s Start-up fund Sarothi or Sarothi Start Up Fund Loan Scheme. This scheme has launched to remove the hurdle of finance for the small start-ups and entrepreneurs. The entrepreneurs will get the financial assistance in the form of the loan at a subsidized interest rate.
Sarothi startu up fund Assam loan scheme is being run since the financial year 2016-17 and shall be continued for a period of five years. The scheme is being managed by the Industries & Commerce Department as per the guidelines issued under the scheme. The beneficiaries will get the loan from the banks of State with Interest Subvention (Term Loan + Cash Credit) at the rate of 5% P.A.
At the initial stage, the loan was provided by Assam Gramin Vikash Bank (AGVB) to applicants. However, the state government is consulting with the more banks to provide the loan under the scheme.
Sarothi Start Up Fund Loan Scheme Application Form PDF
The loan application form of Sarothi Start Up fund Assam scheme can be downloaded from the link – https://industries.assam.gov.in/sites/default/files/Sarothi_1.pdf
The application forms may also be obtained from the designate bank branches in the state. Below given the snapshot of application form for sarothi startup scheme.
Sarothi Start Up Fund Loan Eligibility
Below given are the details of coverage and target group under the scheme:-
- All the micro, small & medium enterprises (MSME) across the state can apply for the loan.
- The startup industry having innovative ideas and activities will get the loan easily from the bank under the scheme.
- Applicant must not be a defaulter declared by any or financial institution.
- If the applicant have any kind of special skills, he/she will get the priority by the government under the scheme.
However, the people of the Hill Districts of the Assam viz, Karbi Anglong & DimaHasao etc. will not get the loan from the Assam Gramin Vikash Bank (AGVB), because this bank doesn’t exist in the hilly districts of the Assam. Although, Govt. of Assam will consult with the other banks for implementation of the scheme in the hilly districts.
Startup Loan Under Sarothi Scheme
Below are the highlights of loan and role of state government under the scheme
- The eligible applicant will get the loan up to Rs. 10 lakh with 5% interest subvention.
- The applicant will invest at least 15% of the cost of the project by himself and the rest amount will be financed by the bank.
- The number of beneficiaries for a fiscal year will be finalized by DICC. In addition, DICC will also finalize district wise AGVB branches to accept the applications of the loan under the scheme.
- The bank branch can’t start the process of selection of beneficiaries under the scheme without the permission of DICC.
- In addition, the loan application of applicant will be scrutinized by the official of DICC. After the inspection, the loan application will be placed in the front of District level Committee (DLC) for approval.
- DLC will accept the proposal and forward to Branch of Assam Gramin Vikash Bank for sanction of loan amount under the scheme.
- Moreover, the Department of Industries & Commerce, Govt. of Assam will involve in the inspection of the units financed as well as would help the bank in the recovery of loans sanctioned under the scheme.
- Besides, the beneficiary has to payback of loan in the duration of 5 years as per terms and conditions of the bank.
The candidate can download the complete guidelines with the application form of the scheme in PDF format from the given link – https://industries.assam.gov.in/sites/default/files/Sarothi_1.pdf
Sarothi – Chief Minister Start-up Fund Scheme for Funding Startups in Assam
Chief Minister’s Start-up fund Scheme ‘Sarothi’- A Memorandum of Understanding (MoU) has been signed between Assam government and Department of Industries and Commerce and Assam Gramin Vikas Bank (AGVB) for funding the startups in Assam. The event where the MoU was signed was organized at Udyog Bhawan, Bamunimaidam, Guwahati.
Objective of Chief Minister Start-up Fund Scheme Sarothi
The objective of signing this MoU is to provide funding for startups in Assam by providing them financial assistance in the form of loans with interest subvention. Through Assam Gramin Vikas Bank, Chief Minister’s Start-up Fund Scheme ‘Sarothi’ will cover the whole Assam state.
List of Documents for Sarothi Start Up Fund Assam Loan Scheme
Following are the documents as applicable and necessary shall be submitted along with the application:-
- Application in the prescribed format (as per Form-A).
- Two copies of Passport size photo graph (black & white).
- Entrepreneurs Memorandum Part-I (EM part-I) , Udyog Adhar, as applicable.
- Scheme /project Report of the proposed activity.
- Identity Proof ( Any of the following) – Voter Identity Card / PAN Card / Driving License / Job Card / Aadhaar Card / Identity Card.
- Address Proof (Any of following) – Electricity Bill/ Telephone Bill/ Bank Account Statement of any other bank/ Letter from reputed employer/ Letter from recognized public authority verifying the address of the customer to the satisfaction of the bank/ Ration Card / Voter Identity card.
- Trade license, if any
- Certificate of training , if any
- Certificate of OBC/SC/ST/Physically handicraft, if any
- Any other documents likely to be provided by the applicant
Interest Subsidy under Sarothi
An interest subvention of 5% per annum will be provided to the beneficiaries who will take loan under the Start-up Fund ‘Sarothi’. New and creative start-ups in any sector would be eligible to get the benefit under the scheme. But priority will be given to those applicants who have undergone any kind of skill development training.
The initiative launched by the government to remove the obstacle and hurdle of equity or fund facing by entrepreneurs for boosting their business.
The implementation process of the scheme shall be started in the financial year 2017-18 and valid for the period of five years.
All general managers have been instructed to start the process of inviting application from eligible beneficiaries. After collecting application, a district-level committee along with AGVB would be organized in which eligible beneficiaries would be selected for the loan under the scheme.
For more details, visit the official website at https://assam.gov.in/sarothi-start-assam