The Shrama Shakthi Scheme is launched by the Karnataka Minorities Development Corporation Ltd (KMDC) to empower entrepreneurs from religious minority communities by offering skill training and a loan of ₹50,000 at a concessional 4% interest rate, repayable in 36 monthly installments. Beneficiaries who repay 50% of the loan within 36 months will have the remaining 50% treated as a back-end subsidy. The scheme promotes self-employment by helping individuals start or expand small businesses.
Scheme Key Highlights (Short Summary)
• Loan Amount: ₹50,000 with 4% interest
• Back-end subsidy of 50% if 50% of loan is repaid in 36 months
• Beneficiaries trained in artistic & technical skills
• Only applicable to Karnataka religious minority residents
• Selection via district-level Selection Panel
Benefits
• ₹50,000 loan at 4% interest for 36 months
• 50% of loan amount converted into subsidy if half of the loan is repaid within 36 months
• Skill training for self-employment (artistic/technical trades)
• Financial assistance directly credited to bank account upon approval
Eligibility
• Age: 18 to 55 years
• Permanent resident of Karnataka
• Must belong to religious minority community (Muslims, Christians, Jains, Buddhists, Sikhs, Parsis)
• Family income must not exceed ₹3.5 lakh per annum
• Should not have availed benefits under other KMDC schemes in last 5 years (except Arivu Scheme)
• No family member should be employed in State/Central/PSU
• Applicant should not be a KMDC loan defaulter
Exclusions
• Central/State/PSU employees and their families
• Existing KMDC loan defaulters
• Applicants or families who benefited from other KMDC schemes in last 5 years (except Arivu Scheme)
Application Process
Online + Offline
• Step 01: Visit KMDC official website and fill out the online application
• Step 02: Take a printout of the completed form
• Step 03: Submit the form along with all required documents to your district’s Selection Panel
• Step 04: Upon approval, the loan and subsidy will be processed and credited to the applicant’s bank account
Documents Required
• Printout of filled online application form
• Two recent passport-size photographs
• Caste & Income certificate (valid and latest)
• Aadhaar card copy
• Business project report
• Bank Passbook copy
• Self-Declaration by applicant
• Self-Declaration by surety
Frequently Asked Questions (FAQs)
Q: Who will get the benefits under Shrama Shakthi Scheme?
A: Minority community residents of Karnataka aged 18–55, with income below ₹3.5 lakh/annum.
Q: What is the loan amount under this scheme?
A: ₹50,000 at 4% interest.
Q: Is training provided under this scheme?
A: Yes, artistic and technical skill training is provided.
Q: What is the rate of interest on the loan?
A: 4% per annum.
Q: What is the repayment term?
A: 36 monthly installments.
Q: Can government employees apply?
A: No, neither the applicant nor their family should be employed in State/Central Government or PSUs.
Q: Where can I get the required forms and certificates?
A: Self-declaration and caste/income certificates can be obtained from local district/taluk offices or downloaded from KMDC website.
Q: What if I repay 50% of the loan in 36 months?
A: The remaining 50% will be treated as a back-end subsidy and waived.
Sources and References
• Shrama Shakthi Scheme Description
• Karnataka Minority Development Corporation Official Website
• Shrama Shakthi Scheme Reports