Government Subsidy Loan for Business in Assam: A Complete Guide for Entrepreneurs
What is a Government Subsidy Loan?
To let the small businesses bloom, support entrepreneurs or back up individuals in different sectors, the government subsidy loan is provided. The best part of this sort of loan is that the interest is being subsidized by the governing body. The motive behind this action is to reduce financial burden from the borrower.
To enrich the financial strength of our country there are are myriad financial schemes introduced.Key Government Loan Schemes Available in Assam
- MEGP (Prime Minister’s Employment Generation Programme) :- Northeast India is full of myriad opportunities, it’s a land of achievers willing to bloom in various different sectors. Many entrepreneurs in India firmly believe in Make in India and let our country progress. This scheme was initiated to help the small business owners and budding entrepreneurs.
Offered by:– Assam is also known for its rich handicraft industry therefore the scheme is offered by Khadi and Village industries commission.
Subsidy:- Subsidies on a timely basis are introduced by the governing body to reduce loan burdens. In this scheme the subsidy relies on 15% to 35% on the nature and motive of businesses.
Loan limits:- If the manufacturing has to be done then the loan limit is 25 lakhs (manufacturing) and 10 lakhs service. - CMYEP (Chief Minister’s Young Entrepreneur Programme) – Assam:
The target of this program to be youth centric. In this programme it’s mandatory to have one month training. The key objective of the program is to build sustainability in the state and increase the self-employment opportunities.
The prime age criteria to get benefit out of this scheme is that the person should be between 18-35 years of age or may extend up to 40 years for special categories.
Loan amount:- The loan amount could be approved of 5 lakhs with a 50% government subsidy. - Stand-Up India Scheme:- Every gender has the right to make our country financially strong. To enhance the Make in India scheme and promote entrepreneurship, Prime Minister Narendra Modi in April 2016 introduced the Stand-up India scheme.
This scheme was designed to give maximum growth opportunities to SC/ ST and Women entrepreneurs. According to the nature of business, the loan range could go upto 10 lakhs to 1 crore. The purpose of the Scheme is to support Greenfield projects in the sectors like manufacturing, trading or services.
4. Assam Startup Funding Support
Not just the scheme, this policy is more in light even for its endless subsidy powers like Digital upgradation subsidy. The borrower gets a subsidy of 50%,up to one lakh, for the purchases of laptops, hardware or software. In the initial years, one could also get the power subsidy till 5 years till 1 lakh. There is no equity dilution for the funds up to 20 lakhs. In every scale of business this scheme is useful.5. MUDRA Loan under Pradhan Mantri Mudra Yojana (PMMY)
Under this scheme the loan can be granted up to 20 lakhs for small businesses. This loan scheme does not require you to have a collateral. Under this Loan scheme, there are various types like:-
Shishu Loan:- This scheme is extremely useful for startups and micro businesses. The low interest rates become the major plus point for the borrower to go for this scheme. The flexible repayment tenure is one thing that can’t be missed. The Assamese Government too is taking a lot of initiatives to promote businesses in North India.This loan could be applied for various different business verticals like mushroom farming, hand made Bamboo product manufacturing or packaging of traditional Assamese food and much more.
Kishore Loan:- Mid- Size business owners can get maximum benefits in this scheme. The easy tracking method of loan status and flexible repayment tenure drags in all the interest in this sort of loan. The limit of this loan starts from Rs 50,000 and extends up to 5 lakhs. These sorts of loans are usually offered by banks, NBFCs and MFIs.
Tarun Loan: The earlier limit of loan was 5 lakhs to 10 Lakhs but now the Tarun Plus grants a loan of Rs 20 lakhs. The age applicable for this loan is 18 to 65 years. These loans are applicable for people wanting to have a loan for allied agricultural sectors, manufacturing and trading sectors. These loans are offered by: Banks, NBFCs, MFIs.
Pradhan Mantri Mudra Yojana the borrower should not have any record of default loan with any financial body. As Per this Yojana complete guidance is provided for Micro, Small and Medium size business enterprises.
Eligibility Criteria
How to apply for Government Subsidy Loan in Assam?
Step 1:- Choose the right scheme
Research on the grants, subsidy, interest rates and other aspects that can match well with your business needs. Compare the different subsidy schemes like PMEGP, CMYEP or Mudra.
Step 2:- Prepare documents
After choosing the right scheme, now it’s high time to gather documents like Aadhar Card, PAN Card. Business plan or proposal. Proof of business registration if applicable, Returns of your income tax, Bank account details and other documents that are related to the scheme.
Step 3:- Apply online or through bank
Prime Minister Employment Generation Programme:- The borrower can apply online by visiting KVIC Website or can physically visit the KVIC office.
Chief Minister Young Entrepreneur Program:- The loan seeker can easily apply through the official government portal when intimidated or visiting physically at Assam Government’s entrepreneurship development center.
For Mudra loans:- The loan seeker could visit the nearest bank or non-banking financial company that offers mudra loans.
Tips to increase Loan Approval Chances
- Submit a detailed project report with ROI projections. In order to get the benefit of government schemes, it is necessary to give a proper outline of your business plan, goals and financial projections.
- Maintain a good credit score:- A good credit score is very much important to win the chances of approvals.
- Ensure no loan defaults in the past:- Credit worthiness does play an important role when the loan is applied.
Attach all required documents correctly:- In this step you will require a valid business registration document, identity proof and other financial statements.
If you feel that you need to have extra information then simply visit the concerned department or district industry center (DIC) for assistance
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Why You Should Apply for a Subsidy Loan in Assam
Reduces Financial Burden: The subsidy loan scheme announced by the governments can encourage even the small business owners to take a giant leap. The schemes are also beneficial even for women entrepreneurs who want to be independent and self-employed. The subsidies could also be helpful for farmers of all sorts engaged in activities like mushroom, fish or tea farming.
Encourages Self-Employment: Bee-farming, Fish Farming, Packaged traditional Assamese food, eco-tourism and rural homestays, the ideas could go on and on for young entrepreneurs who are firm in doing self-employment. The young minds can think of self-employment by initiating the sequence of such schemes. Females who want to kickstart or resume back the career journey can take help of these schemes and prosper back in life.
Easy Accessibility: People of Assam have a multitude of abilities, the easy to access loans brings in high end chances of networking with others. These Government announced loans are helpful in multiple ways for various different business sectors. These loans could also be beneficial for promoters who are promoting eco-tourism in Assam. Compared to any other kind of traditional loans, the subsidy loans are quicker, open for different age and business criteria people. The lower interest rates here adds to its eligibility.
Boost to Regional Economy: The natural prospects of Agriculture like Tea farming are already present in Assam. These subsidized loans will be a great aid to the tea boutique owners, cultivators and others in the making of tea business. The threads of Assam surely weave a beautiful story, these subsidized loans could even promote our Indian art, showcase the artisan efforts and encourage us to live with our Art more. Assam is best for its handmade art, weaving styles and other handicrafts. This scheme supports the local initiatives that could add up to the growth of the regional economy.
Conclusion:-
Apply and ace up your business goals! Checking loan eligibility, documentations or knowing the other subsidy plans, we are your one stop solution for all your business needs. Don’t wait to kickstart your entrepreneurship dreams… Call us and kickstart your journey!
