Karma Sathi Prakalpa
State: West Bengal
Ministry: null
Department: Micro, Small & Medium Enterprises and Textiles Department
Category: Skills & Employment
Beneficiary Type: Individual

The scheme aims to help young entrepreneurs in the state establish new manufacturing enterprises and small businesses, including those offering services and trading. The scheme offers soft loans and subsidies for new income-generating projects.

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/-.

1. **Project Subsidy:** A subsidy of 15% of the project cost is provided, with a maximum ceiling of ₹25,000/-.1. **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.

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> **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&#39;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&#39;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&#39;s interest subsidy will still be limited to 50% of the interest paid in the first three years.

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Eligibility:
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 &quot;family&quot; 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.

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Application Process:
[Offline]
Manual Application Form :
The intended entrepreneur can get the prescribed Application Form (Annexure-I) for free from several offices. Or, the Application Form may be obtained free of cost at the following offices:
Office of the Block Development Officer (BDO) in case the applicant resides in the rural area.
Office of the Sub-Divisional Officer (SDO) in case the applicant resides in Municipal/Notified areas outside the areas of Kolkata Municipal Corporation.
Kolkata Municipal Corporation (KMC) in case the applicant resides in the KMC area.
MSME Facilitation Centre (MFC) of District Industries Centre (DIC) in the district.
Physical Application Form under the scheme shall be submitted to:-
The Block Development Officer in case the intended entrepreneur resides in the rural areas, the Office of the Sub-Divisional Officer in case the intended entrepreneur resides in Municipal/Notified areas outside the areas of Kolkata Municipal Corporation and the Kolkata Municipal Corporation in case the intending entrepreneur resides in KMC area. Application Forms may also be submitted directly at the MSME Facilitation Centre (MFC) of the District Industries Centre (DIC) in the district.

Documents Required:
Passport-size photograph.
Age-proof document.
Residential Proof Document.
Educational Qualification- School or College.
Project Report- ( You may see the Model projects to prepare your project).
Caste certificate( if applicable).
Employment Bank registration( if applicable).