The chief minister’s start-up fund scheme named “Sarothi”, launched to encourage new and young businessmen to implement innovative business ideas in the state of Assam. Under which each applicant would get INR. 10 lakhs as an aid to startup a new business plan.
The scheme is an Memorandum of Understanding (MoU) that has signed up between the government and of Assam and the department of industries and the commerce and Assam Gramin Vikas Bank (AGVB) to fund the startups in Assam.
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The eligibility criteria for the Sarothi Startup Loan Scheme
- 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.
- 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.
- 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.
- For receiving the financial aid from the central government, the applicants will have to submit necessary documents, which will support their claim of not being a defaulter under any other loan scheme.
- 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.
- 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 Aadhar card will also be accepted as it contains the residential details.
- 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. This will help to facilitate in getting more facilities from the government.
- An Application about the start-up: The 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.
- 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.
- Passport Photo: 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.
Key Features of Sarothi Startup Loan
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Loan Amount, duration and interest rate
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. The interest rate would be calculated at the time of the amount being meted out and candidates need not worry about paying the loan within 10 months.
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.
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.
How to apply of the loan
- 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.
- 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 finalising the list of selected candidates and verifications.
- All the applications, which have been submitted, will be scrutinised by the DICC. Once the analysis has been completed, the applications will be sent for the approval of the District Level Committee.
- 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.
- After the assessments have been done, all the information will be sent to the Assam Gramin Vikash Bank branches. The next phase of the verification and the assessment will be done in the respective departments.
- The approval or rejection of the applications will be done by the Branch Manager of the respective branches. The decision will have to be finalised within a span of 30 days only.
- 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.
- 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.
State Government Roles and Responsibility
- 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.
- 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.
- 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.
- 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 analysing the venture plans, the money will be sanctioned for allotment.