ASSAM SAROTHI START UP LOAN

The government of Assam has introduced Sarothi Start Up Loan Scheme for new entrepreneurs in the state. This scheme is also known as the Chief Minister’s Startup fund- Sarothi. The main objective of Sarothi scheme is to remove the hurdle of funds for the small start up in Assam. Under this scheme, the government provides financial assistance in the form of a loan at a  subsidize rate to all eligible entrepreneurs. 

The objective of Sarothi Start Up Loan Scheme :

The Sarothi Startup Scheme aims to empower young and novice entrepreneurs by actively providing funding to kickstart their ventures. Assam Government provides financial assistance in the form of a loan through designated banks covering the whole of the state. The Assam Government will support the loan so availed by the entrepreneurs through Interest Subvention.

Financial Assistance & Interest Rate for Sarothi Loan :

• Under Sarothi Start-up Loan Scheme, Government provides RS 10 lakh with 5% interest subvention to all eligible entrepreneurs.
• The concerned bank authority will debit interest subsidy at 5% after the completion every quarter in a year.
• The entrepreneur will have to provide 15% of the total money required for setting up the entire project, and the bank will finance the rest of the amount through a loan.

Processing Fee For Sarothi Loan :

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The bank will not charge any processing fees or documentation fees from the beneficiaries for Sarothi Loan. DIC will bear the processing fees or documentation fee, Government of Assam on behalf of the applicant as per the extant guidelines of the Bank or at a specified rate of 3% of the sanctioned amount as mutually agreed by the Bank and Dic, Assam Government.

Who are Eligible for this Scheme :

All innovative startup industrial activities and the new individual applicant will be eligible to get the benefit under Sarothi scheme. New Micro, Small & Medium Enterprises (MSME) units in Assam are eligible for these benefits. Applicants who undergo skill development training will receive priority. If the applicant is a defaulter of any Bank or Financial Institution, he or she will not be eligible for benefits under Sarothi scheme.

How To Apply Sarothi Start Up Fund Assam Loan :

• All eligible applicant need to apply in a prescribed format to the concerned general.
• District Industries & Commerce Centers (DICC) official will examine the application and forwarded to the District Level Committee (DLC) for approval.
• DLC and branch managers of AGVB in the district will select the beneficiaries for this scheme.
• On receipt of the approval of the DLC, the proposal will be forwarded to the concerned Branch of AGVB for sanction of loan.
• Branch will scrutinize the proposal thoroughly for sanction of loan within 30 days.

Documents Required for Sarothi Loan Scheme :

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Following documents are required for Sarothi Startup Fund Assam Loan Scheme :-

• Sarothi Start-up scheme application in the prescribed format
• Black & White passport size photo -2Nos
• Entrepreneurs Memorandum Part-I (EM part-I)
• For the proposed scheme or project, the report need to be submitted
• Proof of Identify (Aadhaar card, Voter ID, PAN Card or Driving License)
• Proof of address (Ration card, Electricity Bill, Telephone Bill, Bank Account Statement, Letter from reputed employer) 
• Caste certificate for OBC, SC or ST applicant
• Disability certificate for physically handicraft applicant

Repayment of Sarothi Loan :