Chief Minister’s MSME Interest Subvention Scheme, Chief Minister's Start up Fund, Sarothi The Start Up Assam

All the beneficiaries under the scheme will be eligible for interest subvention on credit up to Rs. 10.00 Lakhs.

The entrepreneurs of the State, more particularly the 1st generation entrepreneurs are facing problem to convert their ideas into reality due to lack of adequate resources in the form of equity, loan, etc.Getting loan or financial assistance from Bank/Financial Institutions for any new venture is a major problem in the State as Banks/Financial Institutions are very reluctant to provide loan considering it as a risk for them.To remove this hurdle of equity /fund crunch, the State Government has proposed to launch a new scheme called Chief Minister's Start-up fund “Sarothi” with an initial amount of Rs.10 Cr during 2016-17. The fund shall be managed by the Industries & Commerce Department as per its operational guidelines. The scheme shall be operational from the financial year 2016-17 and shall be valid for a period of five years.The guidelines of the scheme do not supplement the argument given above as it do not propose to give equity support,instant aimed at giving interest concession

Chief Minister’s MSME Interest Subvention Scheme, Chief Minister's Start up Fund, Sarothi The Start Up Assam Objective Image

Objectives

The basic objective of the scheme is to provide financial assistance in the form of loan with Interest subvention through a designated Bank covering whole of Assam. The loan so availed by the beneficiaries will be supported by the State Govt. through Interest Subvention @ 5% P.A.

Benefits

Loan amount shall be maximum of Rs. 10.00 lakh.
Equity/Promoter’s Margin shall be 15% of the project cost.
All the beneficiaries under the scheme will be eligible for interest subvention on credit up to Rs. 10.00 Lakhs.
Banks will charge the borrowers as per their respective lending norms and 5% will be subvented in the loan accounts of the beneficiaries by the DIC, government of Assam based on claim prepared by the bank and submitted to the DIC, government of Assam. The balance interest calculated (@ Lending Rate of Interest levied on the loan amount disbursed minus 5%) will be repaid by the Borrower in Equated Monthly Installment (EMI).
The beneficiary who fails to meet his/her repayment obligations in time and the account becomes NPA, the benefits of interests subvention will not be available to them from the date of account becoming NPA. All other eligible beneficiaries shall continue to get the benefit of interest subvention for a maximum period of 5 years or the agreed term of the loan whichever is less.
A Current Account (Escrow Account) shall be opened at AGVB, Chandmari Branch by DIC or parking of the fund “SAROTHI – THE START-UP ASSAM” received from the State Govt.
The Bank will have the authority to debit the Escrow Account to realize the Interest Subvention @5% due to the bank on the loan amount disbursed as on the last day of each quarter of the financial year.
The Bank will not charge any processing fees/ documentation fees from the beneficiaries. The processing fees/ documentation fee shall be borne by DIC, Govt. of Assam on behalf of the beneficiaries 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, government of Assam. As such, the Bank will also have the authority to debit the Escrow Account to realize the one-time processing fees/ documentation.

Chief Minister’s MSME Interest Subvention Scheme, Chief Minister's Start up Fund, Sarothi The Start Up Assam Benefit Image

Eligibility

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

How to Apply?

Application for the financial assistance under the scheme shall be submitted to the concerned General Manager, District Industries & Commerce Centre (DICC) in prescribed form (Annexure-A ) along with the supporting documents as per checklist annexed with the application form.

DICC shall finalize AGVB branch-wise/ district-wise target for the financial year and communicate it to the AGVB HO and get it accepted by the Bank before starting the process of selection of beneficiaries under the scheme.

On receipt of the application by DICC, from the applicants, it shall be scrutinized by the officials of DICC and placed before the District Level Committee (DLC) constituted for approval.

DLC shall include the Branch manager of the nodal branch of AGVB in the district, who will be involved in the process of selection of beneficiaries under the scheme.

On receipt of the approval of the DLC, the proposal shall be forwarded to the concerned Branch/es of Assam GraminVikash Bank for sanction.

On receipt of the proposal from DI&CC, concerned branch will examine the proposal thoroughly with due diligence and dispose of (sanction/rejection) to the proposal within 30 days.

DLC shall approve number of proposals only as per pre-determined target for the district and after ascertaining the eligibility criteria as per the guideline of the scheme. Waiting list may be maintained at DLC level to replace any proposal is rejected by Bank due to valid reason after careful appraisal with due diligence. The rejected proposal shall be returned to the sponsoring agency (concerned DIC) stating the reason for rejection within 15 days of receiving the proposal by the branch.

DLC will avoid selection and forwarding of proposal to the branches of AGVB beyond the pre-determined target set for the branch/ district

Details & Documents

Subject	Type	Document Size	Date	Action
Chief Minister’s MSME Interest Subvention Scheme (Chief Minister's Start-up Fund) (Sarothi-The Start Up Assam) Guideline	.pdf	469.43 KB	01 Apr 2026	Download