The Sarothi Startup Fund in Assam is a government-backed financial support program designed for local entrepreneurs. Officially referred to as the Chief Minister's Startup Fund or the Sarothi Startup Loan Scheme, this initiative was created to eliminate capital-related barriers for small businesses and new ventures. Qualified entrepreneurs can access financial backing through low-interest, subsidized business loans.
Operational since the 2016-17 fiscal year, the Sarothi startup scheme is slated to run for a five-year term. Administered by the Department of Industries & Commerce, the program provides eligible beneficiaries with bank-based loans (including Term Loans and Cash Credit) featuring a 5% per annum interest subvention.
Initially, loan disbursements were exclusively handled by the Assam Gramin Vikash Bank (AGVB). However, the state government is actively expanding its partnerships with additional banking institutions to extend the reach of this financing program.
Sarothi Startup Loan Scheme Application Form PDF
You can download the official loan application form for the Sarothi Assam scheme here: https://industries.assam.gov.in/sites/default/files/Sarothi_1.pdf
Application forms are also available at designated bank branches throughout the state. A preview of the Sarothi application document is provided below.
Sarothi Startup Fund Eligibility Criteria
Review the coverage and target demographic requirements for this scheme below:
- All Micro, Small, and Medium Enterprises (MSMEs) operating within the state are eligible to apply.
- Startups that demonstrate innovative business models and activities are prioritized for loan approval.
- Applicants must not be listed as loan defaulters by any financial institution.
- Individuals possessing specialized technical or professional skills will receive preferential treatment during the selection process.
Note that residents of Hill Districts like Karbi Anglong and Dima Hasao may not currently access these loans through the Assam Gramin Vikash Bank (AGVB) due to limited branch network presence. The Assam government is actively engaging with other lenders to ensure scheme implementation in these regions.
Startup Financing Under the Sarothi Scheme
Key details regarding loan terms and government involvement are outlined below:
- Successful