Karnataka Shrama Shakthi Loan Scheme

Scheme Introduction: A Brief Overview

• Karnataka Shrama Shakthi Loan Scheme is one of the major financial welfare schemes of Karnataka Government.
• For its implementation across the state, the Karnataka Minorities Development Corporation Limited has been appointed as the nodal authority of the scheme.
• The scheme aims to target minority traditional artisans looking to improve their artistic and skills to start or expand their business.
• Under this scheme, the state government is providing a collateral free loan up to Rs 50,000/-
• Beneficiaries can avail this loan at a nominal interest rate of 4%.
• The primary objective of the scheme is to support these artisans financially, helping them to expand or start their trade.
• Announced scheme is also referred to as "Karnataka Shrama Shakthi Scheme" or "Shramashakthi Loan Scheme".
• As mentioned, the loan provided under the Shrama Shakthi Loan Scheme can be used to start or expand their current business.
• Assistance provided under the scheme comes with back-end subsidy benefits.
• Under the back-end subsidy : -
  • If applicants repay the 50% loan amount in 36 months then the remaining 50% amount will be treated as a back-end subsidy.
  • In case applicants fail to pay the Half Amount of Loan in 36 Months then the other half will be treated as loan and benefit of back end subsidy will be waived off.
• Shrama Shakthi Loan Scheme is not meant for all categories and restricted its benefits to religious minority communities of Karnataka.
• Applicants belonging to any of the minority communities are eligible to apply for loan under Karnataka Shrama Shakthi Loan Scheme :-
  • Muslims.
  • Sikhs.
  • Parsis.
  • Jains.
  • Christians.
  • Buddhism.
• Karnataka Shrama Shakthi Loan Scheme offers certain benefits to its eligible beneficiaries which are given as :-
  • Collateral Free Loan of Rs. 50,000/-.
  • Interest Rate will be charged @ 4% per year.
  • If 50% loan amount is paid within 36 months then no need to pay other half.
  • It also offer skill training.
• To avail loan, applicants are not required to submit any security under the Karnataka Shrama Shakthi Scheme.
• Applicants or their family members avail loan or subsidy benefits from the corporation (Except Arivu Loan Scheme) are not entitle to receive benefits of this scheme.
• Eligible beneficiaries can apply through Karnataka Online Application Management System Portal and then submit the application form of shramashakthi loan scheme with documents to its district selection panel.
• Applicants must submit their application before its deadline.
• Beneficiaries can visit the Karnataka Online Application Management System Portal and apply for the Karnataka Shrama Shakthi Loan Scheme.

Scheme Benefits

• Karnataka Government will provide following benefits under Shrama Shakthi Loan Scheme : -
  • Provide a collateral free loan of Rs. 50,000/-.
  • Loan will be provided at an interest rate of 4%.
  • 50% of the loan amount will be provided as back end subsidy.
  • Back end subsidy will be provided if beneficiary repay the 50% of the loan due in 36 months.
  • If the beneficiary fails to repay the 50% of the loan in the first 36 months then the remaining 50% will not be provided as a back-end subsidy and will be treated as a loan.
  • Skill training will also be provided to eligible applicants.

Eligibility Requirements

• Benefits of Shrama Shakthi Loan Scheme will be offered to those beneficiaries who meet the following eligibility conditions : -

  Applicants must be a permanent resident of Karnataka. Beneficiary age should be between 18 to 55 years. Annual family income of the applicants should be less than Rs 3.50 lakh. Applicants must belong to any one minority community mentioned below : - Muslims. Sikhs. Parsis. Jains. Christians. Buddhism.

Ineligibility Criteria of Scheme

• Beneficiaries with any of the given criteria will not be considered eligible : -
  • Either applicants or their family member are state or central government employees.
  • Applicants or his family member avail loan or subsidy benefits from the corporation in the last five year (except Arivu Loan Scheme)

Required Documents

• Following Documents will be required at the time of applying for loan under Shrama Shakthi Loan Scheme of Government of Karnataka :-
  • Online Application Form.
  • Residence Proof of Karnataka.
  • Caste Certificate.
  • Income Certificate.
  • Aadhaar Card.
  • Business Project Report.
  • Two Latest Passport Size Photo.
  • Bank Account Details.
  • Self Declaration Form.
  • Surety Self Declaration Form.

Steps to Apply

• Eligible beneficiaries can apply for Shrama Shakthi Scheme by submitting its Application Form Online.
• Online Application Form for Shrama Shakthi Scheme is available on Karnataka Online Application Management System Portal.
• Enter your mobile number and verify the OTP to login.
• Fill the following details in the Shrama Shakthi Scheme Online Application Form :-
  • Personal Details.
  • Contact Details.
  • Project Details.
• Upload the required documents on the portal.
• Preview the application before its final submission.
• Upon submission take a print out of the Online Application Form and attach all the required documents with it.
• Submit the Application Form of Shrama Shakthi Scheme along with the documents to the District Selection Panel.
• District Selection Panel will scrutinize the application form and documents.
• On the basis of scrutiny, a list of eligible and ineligible applicants will be prepared.
• Beneficiary clear the scrutiny test will receive the scheme benefits.
• Applicants must submit the Karnataka Shrama Shakthi Loan Scheme application before its deadline.

Important Forms

• Karnataka Shrama Shakthi Loan Scheme Self Declaration Form.
• Karnataka Shrama Shakthi Loan Scheme Surety Self Declaration Form.

Relevant Links

• Shrama Shakthi Loan Scheme Online Application Form.
• Shrama Shakthi Loan Scheme Registration.
• Shrama Shakthi Loan Scheme Application Status.
• Minorities Development Corporation Limited Portal.
• Shrama Shakthi Loan Scheme Guidelines.
• Karnataka Minorities Development Corporation Limited App.
• Karnataka Minorities Development Corporation Limited District Office Contact Numbers.

Contact Information

• Karnataka Minorities Development Corporation Limited Helpline Number :- 080-22860999.
• Karnataka Minorities Development Corporation Limited WhatsApp Helpline :- 08277799990.
• Karnataka Minorities Development Corporation Limited Helpdesk Email :-
  • info.kmdc@karnataka.gov.in.
  • kmdc.ho.info@karnataka.gov.in.
• Karnataka Minorities Department Corporation Limited,
  No. 39-821, Subedhar Chatra Road,
  Sheshadripuram, Bengaluru,
  Karnataka - 5660001.