Apr 172017

Chief Minister Sarothi Start up loan scheme Assam

Sarothi scheme launched by Assam government is aimed at encouraging new and young businessman to implement innovative business ideas in the state. Under the scheme the government has sanctioned the sum of Rs ten lakhs to be given as aid to new business enthusiast as the start up amount for setting up their plan. To get this benefit the candidates need to meet certain criteria factors which are stated as below.

What is eligibility for Sarothi Startup loan in Assam

  • According to the scheme the financial assistance shall be provided by the central and state government. Any new businessman who is willing to implement new business scheme under this new scheme is eligible to apply for financial assistance.
  • It is certain that new MSME units are also eligible to apply for assistance under this new scheme. It is also important that the new ideas implemented should be able to express government with their expected profit margins making the process or repayment much easier.
  • Any applicant who has completed special training for developing skills to implement their new ideas will always be given priority by the government under the scheme. This will offer benefit to these applicants in comparison to non-trained professionals.
  • Under this scheme it is also certain that all applicants are expected to submit the required documents to the central government. This procedure is important to assure that the applicant is not defaulter when applying for the loan scheme.

Key features of Sorathi Startup loan

Below stated are the main features of the Sorathi scheme implemented in the state.

  • Sorathi startup scheme by the government has been aimed to offer applicants with financial assistance. This amount can be used by new businessmen as a startup loan amount to help establish their new ventures in the state. Under the scheme the state government shall be offering assistance of Rs ten lakh.
  • Under the scheme implemented the applicants are expected to invest around 15 percent amount of the total project cost at the time of setup. The remaining part will be invested by the government to help get started with the business setup.
  • Any bank or financial institution that will provide with the sanctioned amount will have to follow strict guidelines stated in the scheme. Apart from this the applicant will also get an amount of 5 percent as subsidy.
  • At the time of investment the applicant is also expected to open up a savings account in AGVB (Chandmari Branch). The total subsidy of 5 percent shall also be debited from the applicants account after completion of 1st
  • There shall not be deduction of any processing or documentation fee from the applicants account. DIC shall be responsible for paying the processing fee for the loan under the scheme. In case the bank deducts any amount then it will be reflected in the savings account of the applicant.
  • Under this scheme it is certain that banks and financial institutions will have to submit all the documentations to the head office for processing. The head office is also responsible for sanctioning the loan only after the selection of the applicant.
  • The applicants are also expected to make the repayment of interest amount on the basis of the calculations provided by the finance institution and authorized banks.

Loan amount and duration

  • Under this scheme implemented each applicant is eligible to get a financial assistance up to Rs ten lakh as loan amount. The applicant can make use of this loan amount to set up his new business venture in the state.
  • It is also certain that the repayment of the loan amount will be done by the borrower on the basis of the calculations done by the bank. Applicant is entitled to repay the loan amount including the interest within the decided period of 5 years.

Interest rate

  • According to the updates the applicants will have to pay an interest rate depending on the present rates imposed by the banks. The rate may vary depending on the new bank laws and directives issued by the head office.
  • It is also certain that interest rates may vary for NABARD/ RBI/Bank authorities. For the first ten months the applicant will be offered as probation period under which he or she will not have to worry about the loan repayment. This probation period will be calculated on the basis of the loan approval date.


There are few guidelines and regulations that need to be followed under the Sorathi startup loan scheme.

  • Under the scheme it is important that applicants will have to hypothecate their unfinished and finished goods along with raw materials. Apart from this they will also have to hypothecate all their plant and machinery along with immovable and movable assets that have been a part of the project at the time of applying and obtaining of the loan from the bank.
  • The scheme does not request any applicant to make a security deposit in the form of money in their account. This is also one of the best ways to reduce the burden for the applicant. Apart from this, the applicant can also invest this money for setting up the project.
  • It is also important that the applicant have to get all their declared assets legally hypothecated and insured. The applicant is also expected to pay the insurance amount on regular basis to the insurance company. This is to ensure that the policy is valid and does not get lapsed.
  • The government has clearly stated that the loan amount sanctioned can not be represented under the CGTMSE program.

Required Documents

To get benefit of Sorathi startup scheme it is important that the applicants submit the following documents at the time of loan application.

  • Proof of ID: Each applicant is expected to provide with genuine id proof along with the application form. An attested copy of PAN card, Voters card and Aadhar card should be submitted. These documents will help the bank authorities to verify the identity of the applicant.
  • Proof of address: The applicants are also supposed to provide with self attested residential proof. They have to submit a copy of water bill, electricity bill or landline phone bill. Apart from this applicants also submit a copy of Aadhar card along with the application form.
  • Certificate of caste: To get better benefits under the scheme applicants can also submit certificate of caste (SC, ST or BC) to the government authorities.
  • Loan application: Applicants should submit an application form duly filled along with providing all details about the borrower. Apart from this you may also have to provide the overall cost of the project and the details of loan amount they are requesting from the bank.
  • Aadhar card (Udyog): It is also important for the applicant to provide with a valid trade license or a copy of Aadhar card (Udyog). This will also provide the government with an idea about the training background of the applicant.

Passport size photo: At the time of application it is also important to submit latest passport sized photograph as a proof of identity.

How to apply

To apply for the scheme applicants have to fill up a simple application form. Apart from this, following steps also needs to be followed:

  • The application forms have to be submitted at the DICC office to the GM for further verification and approval. It is important to present all documents at the time of submission of the form.
  • The DICC is responsible for selecting AGVB for Districts and branch and then forward the applications for further verification.
  • The applications are then scrutinized after in depth analysis and then forwarded for approval by DLC.
  • DLC will further communicate the desired AGVB branch managers for the selection of the approved candidates from the list of applications.
  • Once the assessment has been completed the desired AGVB branch will be notified for conducting the next verification stage.
  • The branch managers will be responsible for the process of rejection or approval of the applications. This process will take around 30 days to complete.
  • Any application that is rejected shall be sent back to the agency along with complete information stating the cause for rejection.

The Sarothi Startup Loan scheme is one big step taken by the Assam state government to help new ventures set up their innovative business ideas in the state. It is aimed to help innovative ideas and people to help the state establish better business opportunities. The program is also under taken by both central and state government with an aim to widen the area of implementation and to motivate younger generation to get established.


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