Sarothi Startup Fund Assam Loan Scheme Application Form PDF, Eligibility and Loan Details

Sarothi Startup Fund Assam is a financial support scheme of the state government of Assam for new entrepreneurs. The scheme is officially known as Chief Minister's Start-up Fund Sarothi and it helps small startups and new businesses get loans at a subsidized interest rate.

The scheme was launched in the financial year 2016-17 with an initial fund of Rs. 10 crore and is managed by the Industries & Commerce Department. Under the scheme, eligible applicants can get a loan of up to Rs. 10 lakh with 5% interest subvention per year.

The scheme is still listed on the official websites of the Assam government and applications are accepted through the designated bank branches and District Industries Centres (DIC). The official scheme page is available on the Industries and Commerce Department website.

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 official PDF link - Sarothi application form PDF

The application forms may also be obtained from the designated bank branches in the state. Below is the snapshot of the application form for the Sarothi startup scheme.

Sarothi Start Up Fund Loan Eligibility

Below are the details of coverage and target group under the scheme:-

• All micro, small and medium enterprises (MSME) across the state can apply for the loan.
• The startup industry having new ideas and activities will get the loan easily from the bank under the scheme.
• Applicant must not be a defaulter declared by any bank or financial institution.
• If the applicant has any kind of special skills, he or she will get priority from the government under the scheme.

However, people of the hill districts of Assam, like Karbi Anglong and Dima Hasao, will not get the loan from Assam Gramin Vikash Bank (AGVB) because this bank does not exist in the hilly districts. The government of Assam consults with other banks for the rollout of the scheme in the hill districts.

Startup Loan Under Sarothi Scheme

Below are the highlights of the loan and the role of the state government under the scheme.

• The eligible applicant will get a loan of up to Rs. 10 lakh with 5% interest subvention.
• The applicant will invest at least 15% of the project cost himself and the rest will be financed by the bank.
• The number of beneficiaries for a financial year is finalized by DICC. DICC also finalizes district wise AGVB branches to accept loan applications under the scheme.
• The bank branch cannot start the selection of beneficiaries under the scheme without the permission of DICC.
• The loan application of the applicant is checked by the officials of DICC. After inspection, the application is placed before the District level Committee (DLC) for approval.
• DLC accepts the proposal and forwards it to the branch of Assam Gramin Vikash Bank for sanction of the loan amount under the scheme.
• The Department of Industries & Commerce, Government of Assam is involved in the inspection of the financed units and helps the bank in the recovery of loans sanctioned under the scheme.
• The beneficiary has to repay the loan within 5 years as per the terms and conditions of the bank.

How to Apply for Sarothi Start Up Fund Assam Loan Scheme

Applications for the Sarothi scheme are accepted offline through the designated bank branches and District Industries Centres. The steps are given below.

STEP 1 - Download the Sarothi application form from the official PDF link or collect it from the designated bank branch or DICC office.

STEP 2 - Fill in the application form in the prescribed format (Form-A) and attach the required documents like identity proof, address proof, project report and passport size photographs.

STEP 3 - Submit the completed application to the designated AGVB branch or the DICC office of your district before the last date.

STEP 4 - The application is checked by DICC officials and placed before the District level Committee (DLC) for approval. After approval, the loan is sanctioned by the bank branch.

List of Documents for Sarothi Start Up Fund Assam Loan Scheme

Following documents, as applicable, are required to be submitted along with the application:-

• Application in the prescribed format (as per Form-A).
• Two copies of passport size photographs (black and white).
• Entrepreneurs Memorandum Part-I (EM Part-I) or Udyog Aadhaar, as applicable.
• Scheme or project report of the proposed activity.
• Identity proof - Voter ID card, PAN card, driving license, job card, Aadhaar card or identity card.
• Address proof - electricity bill, telephone bill, bank account statement, letter from a reputed employer, letter from a recognized public authority, ration card or voter ID card.
• Trade license, if any.
• Certificate of training, if any.
• Certificate of OBC/SC/ST/physically handicapped, if any.
• Any other documents likely to be provided by the applicant.

Interest Subsidy under Sarothi

An interest subvention of 5% per annum is provided to the beneficiaries who take a loan under the Start-up Fund Sarothi. New and creative startups in any sector are eligible to get the benefit under the scheme. Priority is given to those applicants who have undergone any kind of skill development training.

The scheme was started to remove the obstacle of equity or funds faced by entrepreneurs for boosting their business. All general managers have been instructed to start the process of inviting applications from eligible applicants. After collecting applications, a district level committee along with AGVB selects the eligible applicants for the loan under the scheme.

For the complete scheme and guidelines, visit the official page at Sarothi scheme and guidelines page on the Commissionerate of Industries and Commerce website.

Farmers looking for similar loan support can check the Assam Zero Interest Crop Loan Scheme which gives 100% interest subsidy on short term agricultural loans.

FAQ's

What is the maximum loan amount under the Sarothi scheme?

Eligible applicants can get a loan of up to Rs. 10 lakh under the Sarothi Start Up Fund scheme with 5% interest subvention per annum.

Who can apply for the Sarothi Startup Fund Assam scheme?

New micro, small and medium enterprises (MSME) and startups with new ideas in Assam can apply. The applicant should not be a defaulter of any bank or financial institution.

How is the loan repaid under the Sarothi scheme?

The beneficiary has to repay the loan within 5 years as per the terms and conditions of the bank. The applicant also has to invest at least 15% of the project cost himself.