Sarothi Scheme is a support scheme by the government of Assam for new entrepreneurs and startups. It offers interest subvention on bank loans, helping new businesses turn their ideas into reality without carrying a heavy interest burden.
Sarothi Scheme has been running since the financial year 2016-17 and continues to support first generation entrepreneurs across Assam. The state government manages the fund through the Industries and Commerce Department. Under this scheme, you get a business loan through a designated bank, and the state government pays 5% per annum of the interest for you.
Sarothi Scheme - Introduction
Sarothi Scheme is a special scheme launched by the government of Assam to encourage innovation and entrepreneurship across the state. If you are an aspiring entrepreneur, you often face problems when trying to arrange funds for your business. Many banks see new ventures as risky, which makes getting a loan hard. Sarothi Scheme helps close this gap by offering interest subvention, so credit becomes more affordable for you.
This scheme focuses on helping first generation entrepreneurs who find it hard to turn their bright ideas into real business. The coverage of this scheme includes:
- New startup industrial activities and individual applicants with a workable business plan.
- New MSME units that want to start or expand within Assam.
- Applicants who have finished formal skill development training get top priority.
You should not be a loan defaulter with any bank or financial institution to qualify for these benefits.
| Detail | Information |
|---|---|
| Scheme Name | Sarothi Scheme |
| Level | State |
| Beneficiary State | Assam |
| Target Beneficiaries | Business Entities |
| Nodal Department | Industries and Commerce Department |
| Start Date | 2017-01-01 |
Benefits
Sarothi Scheme eases your interest burden and makes borrowing cheaper. Here is the core support provided:
- Financial support is given as a loan with interest subvention.
- The maximum loan amount you can get is ₹10.00 lakh.
- The state government covers 5% per annum of your loan interest.
Eligibility
To get the benefit of Sarothi Scheme, you should meet the following criteria:
- You must be a new individual entrepreneur or run an innovative startup.
- Your business must be a new MSME unit within Assam.
- You get top priority if you have completed recognized skill development training.
- You must have a clean credit history, as defaulters of any bank are not eligible.
Exclusions
Some situations can stop your application from being approved:
Pending legal cases or a history of loan defaults will make you ineligible. A poor credit score can also lead banks to reject your loan request. If your proposed business project lacks a clear roadmap or basic feasibility, it will not match the scheme's aims.
Application Process
Follow these steps to apply for Sarothi Scheme:
STEP 1 - Visit the official application portal link and download the application form.
STEP 2 - Fill out the form carefully with your project details.
STEP 3 - Attach all the required supporting documents.
STEP 4 - Submit your complete file to the General Manager of your local District Industries and Commerce Centre (DICC).
STEP 5 - Find your nearest DICC office details here.
Documents
Prepare the following documents before visiting your DICC office:
You need a completed application in the prescribed format (Form-A), two recent passport-sized photographs, and proof of business registration such as Udyog Aadhaar or Entrepreneurs Memorandum. Keep a detailed project report for your proposed activity, along with identity proof like your PAN card, Aadhaar card, or Voter ID. Address proof such as an electricity bill, bank statement, or ration card, a valid trade license, copies of skill development training certificates, and caste or disability certificates (if applicable) are also required.
References
Read the official scheme guidelines
FAQ's
Is Sarothi Scheme a direct benefit transfer scheme?
No, it works by providing interest subvention on specific bank loans.
Is the scheme available to all age groups?
Yes, as long as you meet the professional eligibility criteria.
Can only a specific gender avail the benefit?
No, it is open to all eligible entrepreneurs regardless of gender.
Are the benefits genuinely helpful for entrepreneurs?
Yes, the scheme provides tangible financial relief to budding entrepreneurs trying to establish their business.
Does Sarothi Scheme provide funding as equity or debt?
The scheme focuses on bank-linked loans, allowing you to maintain full control over your venture.
Does the scheme cover 100% of the project cost?
No, you are expected to contribute a minimum of 20% of the total project cost.
Can citizens from outside Assam apply?
No, this scheme is designated specifically for entrepreneurs within Assam.
Is the application process lengthy?
The DICC has designated teams to assist applicants and ensure the process is handled efficiently.
Do I need to show financial projections?
Yes, you must provide estimated net sales and net profit figures for the current and upcoming years.
Who exactly is eligible for this scheme?
Individuals, startups, and MSMEs registered under the law are eligible to apply.