Karma Sathi Prakalpa Loan – West Bengal Govt Business Loan 2023 Apply online

Karma Sathi Prakalpa is a great initiative taken by West Bengal Government. This Subsidized West Bengal Govt Business Loan Scheme has been announced by West Bengal Govt in employment generation for the promising youth through opening new doors to help intending or prospective entrepreneurs and make them self-dependent, those who are interested in new ventures.

Main Objectives of Karma Sathi Prakalpa – West Bengal Govt Business Loan

• To facilitate intending or prospective entrepreneurs of the state in setting up new manufacturing enterprises and small businesses including services and trading.
• To create gainful self-employment opportunities in both rural and urban areas of the state.
• This scheme aims to provide financial assistance and help passionate and prospective young entrepreneurs to start their own businesses as self-employed youth who will become an employer in the future and generate more employment.
• Under the scheme, soft loans and subsidies will be provided for taking up any new income-generating project in the manufacturing, service, and trading/business sector up to Rs. 2 lakhs.
• The Karma Sathi loan will be provided by the State-owned Cooperative Bank on soft terms.
• The scheme will commence from the date of the Gazette Notification and shall remain in force for a period of three years thereafter.

Also Read West Bengal Minimum wages Rate

Eligibility of West Bengal Govt Business Loan

Any intending or, prospective entrepreneur fulfilling the conditions below can apply. Only one member from a family shall be eligible to apply under this Karma Sathi Prakalpa 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 – Dt. 9th 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.

Karma Sathi Prakalpa: Model Schemes/Projects: “Own Contribution 10%”

The applicant whose project is finally sanctioned under this West Bengal government subsidy scheme will be required to pay his/her own contribution in the following manner:
a) Project cost up to Rs. 50.000: 5% of the project cost for all categories of applicant
b) Project cost above Rs. 50,000: 5% of the project cost for SC/ST/Woman/Differently abled/ Minority Communities and 10% of the project cost for others.

Karma Sathi Prakalpa: Model Schemes/Projects: “Own Contribution 5%”

The applicant whose project is finally sanctioned under the West Bengal Govt Business Loan scheme will be required to pay his/her own contribution in the following manner:
a) Project cost up to Rs. 50.000: 5% of the project cost for all categories of applicant
b) Project cost above Rs. 50,000: 5% of the project cost for SC/ST/Woman/Differently abled/ Minority Communities and 10% of the project cost for others.

Type of assistance Under West Bengal Govt Business Loan scheme – Karma Sathi Prakalpa – soft loan and subsidy will be provided for taking up any new income-generating project in manufacturing, service, and trading/business sector up to Rs. 2 lakhs. The loan will be provided by the State-owned Cooperative Bank on soft terms.

Quantum of Karma Sathi Prakalpa:– There are two components of the West Bengal Govt Business Loan scheme under Karma Sathi Prakalpa
i. Project Subsidy: 15% of the project cost is subject to a maximum of Rs. 25,000.
ii. Interest subsidy: Will be paid to the entrepreneur on annual interest paid by him/her to the Co-operative Bank:
a. 50% for timely repayment of interest for a maximum period of 3 years
b. 40% for all other cases for a maximum period of 3 years

Own Contribution (Margin Money):– The applicant whose project is finally sanctioned under the scheme will be required to pay his/her own contribution in the following manner:
a) Project cost up to Rs.50,000: 5% of the project cost for all categories of applicant
b) Project cost above Rs.50,000: 5% of the project cost for SC/ ST/ Woman/ Differently abled/ Minority communities and 10% of the project cost for others.

Eligible scheme:– Any new income-generating activity taken up for self-employment in manufacturing, services, and trading will be eligible for assistance under the scheme. Illustrations explaining the break-up of margin money, project subsidy, and cooperative Bank loan for a few typical applications are shown below:–

1. Illustration 1 for West Bengal Govt Business Loan
   Project Cost: Rs.50,000
   Category of applicant: For all categories
   Source of finance
   Own contribution(Margin money) @5% =Rs.2,500
   Project subsidy by Govt @15% =Rs.7,500
   State Co-op Bank loan @80% =Rs.40,000
   Total =Rs.50,000
   The beneficiary (applicant) will repay to the Bank:
   1) The Loan amount of Rs. 40,000 (payable as per schedule of repayment) in 3 years+ Bank Interest payable in 3 years at the bank interest rate (For example: For rate of interest of 10%, it is Rs. 6,463/-)
   2) For regular repayment, the Government will refund 50% of the interest paid by the beneficiary in 3 years, into the beneficiary bank account as an Interest Subsidy, which is =Rs.3,232 (rounding off Rs. 6,463/2)

2. Illustration 2 Karma Sathi Prakalpa
Project Cost: Rs.65,000
Category of applicant: SC/ST/Woman/Differently abled/Minority
Source of finance
Own contribution @5% =Rs.3,250
Project subsidy by Govt @15% =Rs.9,750
State Co-op Bank loan @80% =Rs.52,000
Total =Rs.65,000
The beneficiary (applicant) will repay to the Bank:
1) The Loan amount of Rs.52,000 (payable as per schedule of repayment of Bank) in 3 years+ Bank Interest is payable in 3 years at the bank interest rate.
2) For regular repayment, the Government will refund 50% of the interest paid by the beneficiary in 3 years, into the beneficiary’s bank account as an Interest Subsidy.

Karmasathi Prakalpa Application Form Download

How to Apply Karma Sathi Prakalpa for West Bengal Govt Business Loan

1. Online
   • Applicants can apply for the scheme through Karma Sathi Prakalpa online portal.
   • Click on “Apply Online” tab.
   • All information in the online application is to be filled in English.
   • All the required documents need to be submitted as attachments with the application.
   • Applicant shall upload the attachment in the prescribed format.
2. Offline
   • Applicant shall visit the following offices to apply for Karma Sathi Prakalpa.
     • Office of the Block Development Officer (BDO) in case the applicant resides in the rural areas.
     • 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.
   • Application forms can be obtained from the above-mentioned offices free of cost.
   • Fill up the application form correctly and submit all the required documents

Documents Required Apply Karma Sathi Prakalpa for West Bengal Govt Business Loan

The application form duly filled in will have to be submitted along with the following documents duly signed by the
candidate:
i. Proof of Identity (with photo)
ii. Proof of residence
iii. Proof of educational qualification
iv. Proof of age
v. Copy of SC/ST/OBC/Minority/Differently abled certificate, if applicable
vi. Project report

Physical Application Form under the scheme shall be submitted to:–

• The Block Development Officer in case the intended entrepreneur resides in the rural areas,
• Office of the SubDivisional Officer in case of 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 Form may also be submitted directly at MSME Facilitation Centre (MFC) of District Industries Centre
  (DIC) in the district.

Scrutiny of applications:–
Office of the BDO/SDO or the Commissioner of KMC shall scrutinize the completeness of the application with respect to the eligibility conditions and documents required under the scheme as mentioned in para 4 and 10 above and
ensure that the application is accompanied by requisite documents. The GM DIC of the concerned district shall provide
all necessary assistance in such scrutiny of applications.

• Processing of Applications of Karma Sathi Prakalpa :–
• The office of the BDO/SDO and the Commissioner of KMC shall forward all received applications to the MFC of the district within 3 working days after receipt of applications for further processing.
• All the eligible application forms submitted physically shall be digitized and uploaded in the Karma Sathi Portal by the MFC officials.
• After digitization of the physically received forms, MFC shall send all such digitized application Forms to the respective Cooperative Banks of the district through the Karma Sathi portal. An SMS will be sent to the applicant notifying the relevant information.
• The Cooperative Bank shall process the applications for sanction as per existing banking norms and sanction loan to eligible applicants with intimation to MFC of the district through the Karma Sathi portal and also update the portal. An SMS will be sent to the applicant of sanctioned cases notifying the relevant information. Cooperative Banks shall complete the process of sanction/rejection within a fortnight. Reason(s) for rejection of application(s) shall be mentioned by Cooperative Banks and uploaded on the Karma Sathi portal.
• Applicants of the sanctioned project shall open a Bank Account in the Cooperative Bank sanctioning the loan and deposit applicable [Margin Money (Own Contribution) as stipulated at para 7 of this notification]. Cooperative Banks shall disburse 95% or 90% amount of bank loan (as the case may be) in two installments as Cash Credit to the applicant’s bank account. In first installment, 50% of the loan amount shall be disbursed and will be linked to Cash Credit Account of the sanctioned applicant. Second installment shall be disbursed in the same manner by the bank after obtaining Relevant Certificate with regard to utilization of the amount disbursed in the first installment

How to Claim of West Bengal Govt Business Loan Subsidy by Cooperative Banks

1. Cooperative Banks shall submit claim of the Project Subsidy as mentionedin para 6 (i) of this notification to the MFC of the District on a quarterly basis. MFC of the District shall send requisition of subsidy to the Department through MSME Directorate after compilation of subsidy amount received from the Districts and thereafter Department shall release total subsidy amount to the West Bengal State Cooperative Bank Limited.
2. The Chief Executive Officer of West Bengal State Cooperative Bank will submit requisition for interest subsidy on half-yearly basis which will be linked to the Cash Credit account of the sanctioned and disbursed loan and the interest subsidy will be credited to that account forthwith.iii. Disbursement of the above subsidies will happen through the portal which will be linked to IFMS.

• Nodal Officer:–
  District Level: The Additional District Magistrate looking after MSME and Industry matters shall act as Nodal Officer of the District. S/He will monitor and review the progress of the scheme at the district level on a regular basis and will submit monthly report to the Director of MSME.
• State Level: Director of MSME shall be the Nodal Officer at State level for monitoring and reviewing the progress of the scheme keeping close liaison with the Districts. He will send a monthly report to the Department about the progress of the scheme