Karma Sathi Prakalpa
Category: Skills & Employment
Level: State | State: West Bengal

Details:
The scheme "Karma Sathi Prakalpa" by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, aims to help young entrepreneurs in the state set up new manufacturing enterprises and small businesses, including services and trading. The scheme provides soft loans and subsidies for new income-generating projects. This assistance is intended for young and enthusiastic entrepreneurs in both rural and urban areas of the state, helping them become self-reliant and create gainful self-employment opportunities. The scheme is implemented by the State-owned Cooperative Bank, which provides the loans on soft terms. It is monitored at the district level by an Additional District Magistrate and at the state level by the Director of MSME.
> **Objectives:**


1.  To facilitate young entrepreneurs of the state in setting up new manufacturing enterprises and small businesses, including services and trading.
1. To create gainful self-employment opportunities in both rural and urban areas of the state.

Benefits:
The scheme provides financial assistance in the form of a soft loan and subsidies for new income-generating projects in manufacturing, service, and trading/business sectors. The total financial assistance available is up to ₹2,00,000/-.
Project Subsidy:
 A subsidy of 15% of the project cost is provided, with a maximum ceiling of ₹25,000/-.
Interest Subsidy: 
This subsidy is paid to the entrepreneur on the annual interest they pay to the Cooperative Bank.
50% of the interest is subsidised for timely repayment for a maximum period of 3 years.
40% of the interest is subsidised for all other cases for a maximum period of 3 years.

Mode of Disbursement:
Bank Loan:
 The State-owned Cooperative Bank disburses 95% or 90% of the loan amount as Cash Credit in two installments.
The first installment, which is 50% of the loan amount, is disbursed and linked to the applicant's Cash Credit Account.
The second installment is disbursed after the bank receives a certificate confirming the utilization of the first installment.
Subsidies:
Project Subsidy:
 Cooperative Banks submit claims for the project subsidy to the District MSME Facilitation Centre (MFC) on a quarterly basis. The MFC then sends a requisition to the Department, which releases the total subsidy amount to the West Bengal State Cooperative Bank Limited.
Interest Subsidy: 
The Chief Executive Officer of the West Bengal State Cooperative Bank submits a requisition for the interest subsidy on a half-yearly basis. The subsidy is then credited to the sanctioned and disbursed loan's Cash Credit account.
Disbursement for both subsidies happens through the portal, which is linked to the Integrated Financial Management System (IFMS).
Validity:
The interest subsidy is provided for a maximum period of three years. If the bank agrees to a longer loan repayment period (e.g., 5 years), the government's interest subsidy will still be limited to 50% of the interest paid in the first three years.


Eligibility Criteria:
1. Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Only one member of a family shall be eligible to apply under this Scheme, where "family" means parents and spouse.


- **Age:** Any intending or prospective entrepreneur in the age group 18 - 50 years(from the date of notification, September 2020).- **Educational Qualification:** Minimum Class VIII passed. Preference will be given to intending entrepreneurs who are registered with the Employment Bank.- Any new income-generating activity taken up for self-employment in manufacturing, services, and trading will be eligible for assistance under the scheme.