Things to know about Coir Udyami Yojana | Fusion - WeRIndia

Things to know about Coir Udyami Yojana

Things to know about Coir Udyami Yojana

Coir Udyami Yojana is a credit-linked subsidy scheme. The government of India introduced this scheme for entrepreneurs in the coir sector.

The scheme provides funding for projects of coir units up to ₹10 lakhs. In addition to that, financial assistance for working capital is also provided. But, it shall not exceed 25 per cent of the project cost. Besides, the working capital is not entitled to a subsidy.

Here are some important things to know about Coir Udyami Yojana:

  • All types of coir related projects are covered under the scheme.
  • There is no income ceiling for establishing a coir unit under this scheme. Any Indian citizen aged above 18 years can avail the scheme.
  • Not only individuals, but companies, NGOs and Institutions registered under Societies Registration Act 1860 can also apply for the loan under the scheme.
  • 40 per cent of the project cost is provided by the government as a subsidy. 55 per cent is given by the bank and the remaining. Beneficiaries have to contribute the remaining 5 per cent.
  • Following documents are essential for the scheme: MSME registration certificate and the PAN card along with the photograph of the applicant. In the case of companies, a company registration certificate is required. SC and ST candidates have to submit their community certificates.
  • Normally, banks will intimate the approval of the loan within two months. They send a sanction letter to the borrower.
  • Beneficiaries have to deposit their contribution of 5 per cent within 30 days after receiving the sanction letter. Banks will disburse the loan amount, i.e., 95 per cent of the project cost, only after the contribution is made by beneficiaries.
  • All commercial banks and regional rural banks provide loans for this scheme.
  • The rate of interest for this scheme is at par with the base rate.
  • The maximum repayment term for this loan is seven years.

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