Interest Subsidy Scheme for Scheduled Caste/Scheduled Tribe Entrepreneurs

Scheme Category

Business & Entrepreneurship,Setting up / start-up / entrepreneurship,Loan

Target Beneficiaries

Individual,Business Entity,Industries

Brief Description

The scheme aims to encourage SC/ST entrepreneurs to establish micro or small-scale service enterprises & to expand, diversify, or modernize their existing units. Under this scheme, a loan amount ranging from a min. of ₹20.00 lakhs to a max. of ₹1,000.00 lakhs is provided at an interest rate of 4%.

Benefit Type

Cash

Eligibility Criteria

1. The unit shall be fully owned by SC / ST entrepreneurs i.e., all promoters in proprietary / partnership / company shall belong to SC/ST community only. 1. The ownership / share holdings of units even in part by other than SC/STs are not eligible for interest subsidy. 1. Entrepreneurs either can be SCs / STs or both. Others terms & conditions: 1. The units which have availed the interest subsidy under any other scheme of Government of Karnataka/Government of India are not eligible for interest subsidy under this scheme. 1. To be eligible for interest concession under the scheme, the units should not be in default in repayment to KSFC. 1. KSFC is at liberty to consider any amount of project cost. However, the interest subsidy is restricted to ₹1,000.00 lakhs of the loan. Interest amount on the balance loan amount beyond ₹1,000.00 lakhs is required to be borne by the entrepreneurs. 1. KSFC may sanction loans with normal applicable rate of interest, the effective interest rate to be paid by the beneficiary / borrower will be 4%. The difference between the normal lending rate of KSFC and effective interest rate of 4% will be reimbursed by Government of Karnataka.

Application Mode

Offline

Application Process

Step 1: The interested applicant should visit (during office hours) the Branch Office (<nis:link nis:type=webUrl nis:id=slugId nis:text="SC-ST-E.pdf" nis:value=https://ksfc.karnataka.gov.in/storage/pdf-files/SCHEMES/SC-ST-E.pdf nis:enabled=true/>) and request a hard copy of the prescribed format of the application form from the staff exclusively entrusted to issue and collect filled-in applications. Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required). Step 3: Submit the duly filled and signed application form along with the documents to the Branch Office. Step 4: Request a receipt or acknowledgment from the concerned authority to whom the application has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).

Required Documents

• Passport-size Photograph
• Proof of SC/ST status of the entrepreneurs
• Bio-Data Net Worth Statement
• Affidavit ( Affidavit-SC-ST.pdf )
• Audited financial statements (if expanding an existing unit)
• Bank account details for loan disbursement
• Any other documents as specified by KSFC during the loan process