Sarothi Scheme Assam: ₹10 Lakh Loan with 5% Interest Subvention

The Sarothi Scheme, launched by the State Government of Assam, is designed to address the funding challenges faced by first-generation entrepreneurs and innovative startups. Many budding entrepreneurs struggle to convert their ideas into reality due to a lack of equity, loans, and other financial resources, as banks and financial institutions often consider new ventures a high-risk investment. To overcome these hurdles, the Assam government introduced the Chief Minister’s Start-up Fund “Sarothi” with an initial corpus of Rs. 10 Cr during the financial year 2016-17. Managed by the Industries & Commerce Department, this scheme aims to provide financial assistance in the form of loans with interest subvention at 5% per annum, offered initially through Assam Gramin Vikas Bank (AGVB), with potential inclusion of additional banks in the future. The scheme covers the entire state of Assam and is valid for a period of five years from its operational start.

Benefits

• • Financial Assistance:
    Entrepreneurs can avail loans with interest subvention.
  • Loan Limit:
    The maximum loan amount under the scheme is Rs. 10.00 lakh.
  • Interest Subvention:
    The State Government supports the loan by providing interest subvention at 5% per annum.

Eligibility

• • Startup and MSME Focus:
    All innovative startup industrial activities and new individual applicants are eligible, as well as new Micro, Small, and Medium Enterprises (MSMEs) in Assam.
  • Skill Development Priority:
    Priority is given to applicants who have undergone any kind of skill development training.
  • Credit and Default:
    Applicants must not be defaulters of any bank or financial institution.
  • Project Viability:
    The proposed project must be feasible, sustainable, and align with the objectives of the scheme.

Application Process

Online

Application Procedure:

1. 1. Download Application:
      The application form must be downloaded from the designated link provided by the government.
   2. Fill the Form:
      Complete the application form (as per Form-A) and attach the required supporting documents.
   3. Submission:
      Send the completed application form along with the supporting documents to the appropriate District Industries & Commerce Centre (DICC) General Manager.
      For details of the DICC General Manager, refer to the provided link.

Documents Required

• • Application Form:
    Completed as per the prescribed format (Form-A).
  • Photographs:
    Two copies of passport-sized photographs (black & white).
  • Entrepreneur’s Memorandum:
    EM Part-I, Udyog Aadhaar, as applicable.
  • Scheme/Project Report:
    Detailed report of the proposed activity.
  • Identity Proof:
    Any of the following: Voter Identity Card, PAN Card, Driving License, Job Card, Aadhaar Card, or any valid Identity Card.
  • Address Proof:
    Any of the following: Electricity Bill, Telephone Bill, Bank Account Statement from any bank, a letter from a reputed employer, or a letter from a recognized public authority verifying the address, Ration Card, or Voter Identity Card.
  • Trade License:
    If applicable.
  • Certificate of Training:
    If available.
  • Social Category Certificate:
    Certificate of OBC/SC/ST/Physical Handicraft, if applicable.
  • Additional Documents:
    Any other documents as may be required by the applicant.

Frequently Asked Questions

1. 1. Is the scheme a direct benefit scheme?
      No, it provides financial assistance in the form of loans with interest subvention.
   2. Is the scheme benefit available to all age groups?
      Yes, the scheme is open to all eligible innovative startup applicants and new MSME units in Assam.
   3. Can only a specific gender avail the benefit of this scheme?
      No, the scheme is available to all eligible applicants regardless of gender.
   4. Are the benefits genuinely beneficial, or is it just a gimmick?
      The scheme is designed to provide tangible financial support to startups, addressing real funding challenges through interest subvention.
   5. Does the scheme provide benefits in the form of equity or debt?
      The benefits are provided in the form of debt, specifically loans with interest subvention.
   6. Does the scheme account for 100% financial aid?
      No, the scheme offers loans up to Rs. 10.00 lakh with interest subvention, not full financial aid.
   7. Can citizens outside Assam apply for the scheme?
      No, the scheme is exclusively available to entrepreneurs and MSME units within Assam.
   8. Is the application process long and cumbersome?
      The process is designed to be straightforward with an online application form and clear guidelines.
   9. Does the applicant need to show their financial performance?
      While the focus is on innovative startups, the applicant’s creditworthiness is considered, and defaults may disqualify the applicant.
   10. Who is eligible for the scheme?
       All innovative startup industrial activities, new individual applicants, and new MSME units in Assam are eligible, provided they meet the criteria.

Sources and References

• • Guidelines
  • Application Form