The Shrama Shakthi Scheme is a unique initiative by the Karnataka Minority Development Corporation (KMDC) aimed at empowering religious minority entrepreneurs in the state. This scheme offers financial assistance in the form of a subsidized loan along with technical and artistic training to help uplift individuals through self-employment opportunities.
Highlights of KMDC Loan Subsidy Scheme
• Loan of ₹50,000 at 4% interest
• Payable in 36 monthly installments
• 50% of the loan converted to a subsidy if half is repaid on time
• Skill-based training provided to beneficiaries
• Beneficiaries selected by a district-level Selection Panel
• Dual application process – Online + Offline
Key Benefits
• ₹50,000 loan provided at a subsidized 4% interest rate
• Loan repayment spread over 36 monthly installments
• 50% of the loan is waived off as a back-end subsidy if 50% is repaid within 36 months
• Skill development training in artistic and technical fields
• Financial upliftment of religious minority communities through entrepreneurship
Eligibility Criteria
• The age of the applicant must be between 18 and 55 years
• Must be a permanent resident of Karnataka
• Should belong to a state-recognized religious minority community
• Annual family income must not exceed ₹3.5 lakh
• Should not have received benefits under other KMDC schemes in the last 5 years (excluding Arivu Scheme)
• No family member should be employed in the State/Central Government or PSUs
• Applicant must not be a loan defaulter with KMDC
Exclusions
• Government or PSU employees and their families are not eligible
• Individuals with outstanding loans or defaults under KMDC are disqualified
How to Apply
Online Process
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Visit the official KMDC website
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Fill in the Shrama Shakthi Scheme application form
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Download and print the filled form
Offline Process
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Submit the printed form along with all necessary documents to the Selection Panel of your district
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Upon approval, the subsidy amount will be directly credited to the beneficiary’s bank account
Necessary Documents
• Printed application form (filled online)
• Two recent passport-sized photographs
• Caste and Income Certificate
• Photocopy of the Aadhaar Card
• Business Project Report
• Copy of Bank Passbook
• Self-Declaration Form
• Surety’s Self-Declaration Form
Selection Committee Members
• Deputy Commissioner of the district – Chairman
• Chief Executive Officer of Zilla Panchayat – Vice-Chairman
• Lead Bank Manager – Member
• Regional Transport Officer – Member
• District Minority Welfare Officer – Member
• KMDC District Manager – Member Secretary
Frequently Asked Questions (FAQs)
Q: Who is eligible to apply under the Shrama Shakthi Scheme?
A: Applicants between 18 and 55 years of age from religious minority communities in Karnataka with a family income below ₹3.5 lakh per annum.
Q: What is the loan amount offered under this scheme?
A: A loan of ₹50,000 is provided with a 4% interest rate.
Q: Is any training offered under this scheme?
A: Yes, artistic and technical skill development training is part of the scheme.
Q: What happens if I repay 50% of the loan within 36 months?
A: The remaining 50% of the loan will be waived off as a back-end subsidy.
Q: Can government employees apply for this scheme?
A: No, applicants or their family members working in government or public sector units are not eligible.
Q: What documents are needed to apply?
A: You need an Aadhaar card, income & caste certificate, passport photos, business project report, bank passbook, and two declaration forms.
Q: Where can I get the declaration forms and caste certificate?
A: These are available at Taluk Offices, District Minority Welfare Office, or can be downloaded from the KMDC portal.
References Links
• KMDC Official Website
• Scheme Report – Shrama Shakthi Scheme PDF
• Government Notifications & Scheme Guidelines
