Sarothi Scheme (Chief Minister Startup Fund) - Assam

The Sarothi Scheme Assam 2026, also known as the Chief Minister Startup Fund, is a state government-backed startup funding solution designed to support first-generation entrepreneurs in Assam. The scheme strengthens the Assam industrial ecosystem by offering structured credit support to new MSME units and helping reduce unemployment through self-employment opportunities.
By providing non-equity financial support and interest subvention, the Sarothi Scheme enables individuals with innovative business ideas to access capital without diluting ownership. It plays a key role in building a self-reliant Assam and promoting entrepreneurship across the Northeast region.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Interest Subvention Scheme - The scheme offers interest support on bank loans to reduce the effective cost of borrowing for new entrepreneurs.
Support through Assam Gramin Vikash Bank AGVB - Loans are facilitated through banks such as Assam Gramin Vikash Bank and other participating financial institutions.
Non Equity Financial Support - The scheme provides debt funding rather than equity investment, allowing founders to retain full ownership of their enterprises.
Entrepreneurial Credit Line - Both term loan and working capital components are supported to ensure business sustainability during initial years.
State Government Backed Loans - Projects are screened and recommended through government channels, increasing credibility during bank appraisal.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Maximum Loan Amount	Up to ₹10 lakh	Eligible entrepreneurs can avail bank-linked loans up to ₹10 lakh. For example, if a manufacturing startup project costs ₹9 lakh, the full amount may be financed under scheme limits.
Interest Subvention	5% interest subvention	The state provides 5% interest support on the sanctioned loan. For example, if a bank charges 10% annual interest on a ₹8 lakh loan, 5% may be borne under the scheme, effectively reducing the entrepreneur’s interest burden.
Promoter Margin Requirement	15% promoter contribution	Applicants must contribute 15% of project cost. For example, on a ₹10 lakh project, ₹1.5 lakh must be arranged by the promoter while the remaining ₹8.5 lakh can be financed through bank loan.
Processing Charges	Zero processing fees	No processing fee is charged under the scheme. For example, if a bank typically charges ₹5,000 to ₹10,000 as processing cost, eligible applicants may receive exemption under Sarothi guidelines.
Repayment Period	Up to 5 years with moratorium	Loans are repayable within five years. For example, if a ₹10 lakh loan is sanctioned with a six-month moratorium, repayment begins after that period through structured installments.
Loan Components	Term loan and working capital	Funding can cover machinery purchase and day-to-day operations. For example, ₹7 lakh may be used for equipment and ₹3 lakh as working capital for raw materials and salaries.

Financial assistance amounts are indicative and subject to revision as per the latest official guidelines.

Eligibility Criteria

Who can benefit

Permanent resident of Assam
Individual applicants proposing new MSME units in Assam
Non-defaulter status with banks and financial institutions
Applicants with innovative business ideas
Entrepreneurs willing to complete Udyam registration for Sarothi
Preference to candidates with relevant skill development certification

Who cannot benefit

Existing large or established enterprises
Applicants with outstanding loan defaults
Non-residents of Assam
Incomplete project proposals or missing documentation
Businesses not aligned with eligible sector norms

Documents Required

Permanent residence proof of Assam
Identity and address proof
Detailed Project Report DPR
Udyam registration certificate
Bank account details
Affidavit declaring non-defaulter status
Skill development or training certificate if applicable
Any additional documents required by District Industries and Commerce Centre

Application Process for the Scheme

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Recommended for startups seeking structured guidance and stronger application positioning.

Option 2: Apply Through Official Channel

Step 1: Prepare Detailed Project Report DPR
Prepare a structured business proposal including project cost, revenue plan, and employment potential.

Step 2: Submit Form A to District Industries and Commerce Centre DICC
Submit the prescribed application form along with required documents to the concerned DICC office.

Step 3: Screening by District Level Committee DLC
The proposal is evaluated by the DLC for feasibility, eligibility, and innovation potential.

Step 4: Bank Appraisal and Sanction
Recommended cases are forwarded to participating banks such as Assam Gramin Vikash Bank for loan appraisal and sanction.

Step 5: Disbursement and Monitoring
Upon sanction, loan is disbursed and monitored as per scheme norms to ensure proper utilization.

The Sarothi Scheme plays a strategic role in the Assam Startup Policy impact by promoting innovative startup funding and encouraging ease of starting a business in the Northeast region. Through structured credit support, interest subvention, and institutional screening, the scheme fosters local innovation and strengthens the journey toward a self-reliant Assam.
By empowering first-generation entrepreneurs, the state moves closer to becoming a vibrant Northeast startup hub driven by sustainable enterprise growth.

Frequently asked questions

What is the Sarothi Scheme Assam 2026?

It is a Chief Minister Startup Fund initiative providing interest subvention and bank-linked loans to first-generation entrepreneurs in Assam.

What is the maximum loan under Sarothi Scheme?

Eligible applicants can avail loans up to ₹10 lakh.

Is the funding equity based?

No. The scheme provides non-equity financial support through bank loans.

What is the promoter contribution required?

Applicants must contribute 15% of the project cost as promoter margin.

Which authority screens applications?

Applications are screened by the District Industries and Commerce Centre and evaluated by the District Level Committee before bank sanction.