The Great 1 Credit Linked Subsidy Scheme “Coir Udyami Yojana”

This is a great credit-linked subsidy scheme that is designed by the great and honorable Central Government of India named “Coir Udyami Yojana. This scheme is also called Rejuvenation, Modernization, and Technology Upgradation of the Coir Industry. This Scheme is introduced for facilitating the sustainable development of the Coir Industry in India.

The Government gives loans up to Rs.10 lakhs plus one cycle of working capital which shall not exceed 25% of the project. You only need Rs. 50000 to get this Rs. 10 lakhs loan and the borrower just needs to repay 5.50 lakhs in 7 years with minimal interest. Conditions, formalities are all we will discuss as we move further in this article.

This Credit linked subsidy scheme will help in generating more employment opportunities especially for the weaker sections of people in the rural areas and to the women. Coir Udyami Yojana is a Central Government as well as a central sector scheme that comes under the Micro, Small, and Medium Enterprises. This Credit linked subsidy scheme will be implemented with the help of the Coir Board which is a great statutory organization under the Ministry of MSME.

At the State level, the scheme will be implemented with the help of the Board’s Regional Offices, Coir Mark Scheme Office, Sub Regional Offices as well as District Industries Centres.

In our view, One must try this special Credit Linked Subsidy Scheme by the government if he/she is eligible.

Objectives of this Credit Linked Subsidy Scheme

• To Modernize the Coir Industry by adopting modern technology in the processing and production of coir and coir products.
• The upgrade and enhance the productivity, as well as efficiency of the workers, engage in this sector.
• To give forward/backward linkages to the stakeholders to whom assistance is given under the Scheme.
• To give training and assistant to the rural youth who are attached to this profession
• Upgradation of the production and processing technology for improving the quality, productivity, and product diversification
• For growth and development of people having Scheduled Castes (SC), Scheduled Tribes (ST) and North Eastern Religion.
• For a generation of employment opportunities in the rural areas of India especially those areas which are engaged in coconut producing.
• To enhance the usage of coconut husk for the betterment.
• To promote and enhance the local brand.

Awareness Camps by Coir Board for This Special Credit Linked Subsidy Scheme

Coir Board organizes various awareness camps in all the coir producing states.

As the name suggests the aim of these awareness camps is to create awareness among coir producing potential beneficiaries (i.e those who might become eligible) especially among the persons of Scheduled Castes, Scheduled Tribes, OBC, Minorities, Women, and Vulnerable class of people and society to take benefit of this scheme.

The Purpose of these awareness comps is to make people self-dependent and encouraging people to become entrepreneurs.

Beneficiaries are also selected and shortlisted in these types of awareness camps and directly sent for the training related to business under Coir Udyami Yojana.

How much money I can get under this Special Credit Linked Subsidy Scheme Loan?

As discussed above any person can get up to Rs. 10 lakhs in Coir Udyami Yojana. The Funding procedure is described as follows:-

Applicant Contribution must be 5% of this Project. For Example, if the applicant wants full Rs. 10 lakhs then he/she must have 5% of Rs. 10 lakhs i.e. Rs. 50 thousand only. You can also take up to 25% of Rs. 10 lakhs for running your day-to-day business expenses and needs in the form of a working capital loan.

• The government will provide you a subsidy of Rs. 4 Lakhs (40% of 10 Lakhs) if you are taking a loan of Rs. 10 lakhs.
• you need to pay back Rs. 5.50 Lakhs plus interest applicable for the scheme.
• You can also take up to 25% of Rs. 10 lakhs for running your day-to-day business expenses and needs in the form of a working capital loan. But this working capital loan will not be considered for subsidy. You have to pay this in full with interest to the government.

Suppose you had taken Rs. 10 Lakhs as a normal loan under this scheme and Rs. 2.50 lakhs (25% of Rs. 10 Lakhs) as working capital loan. Then 40% subsidy will be applicable on Rs. 10 lakhs (ie. on a normal loan) not on 12.50 lakhs.

You can get any amount of loan up to Rs. 10 lakhs such as if you need only Rs. 5 lakhs then you can take a loan up to Rs. 5 Lakhs. The Maximum Amount of a Normal loan (Excluding Working Capital Loan) is Ra. 10 lakhs + working capital loan extra which is up to 25% of the Normal loan under this scheme.

What is the Rate of Interest and Repayment Period under This Great Credit Linked Subsidy Scheme Loan (Coir Udyami Yojana)?

Because this is the honorable government scheme the rates of interest are generally not higher in these types of schemes as these types of schemes is to help the people. Still, The Rates of interest depend on the current base rate of Banks. As we all know that bank rates are not remained fixed as they tend to change from time to time. So you will need to contact your Bank for finding out the present base rates.

The Maximum Repayment Period is 7 years which is huge. You can pay back your amount in less than 7 years if you want to.

The one more great advantage of this great credit-linked subsidy scheme is you do not need any collateral security or 3rd party guarantee. This one of the best Credit Linked Subsidy Scheme states that Banks can not demand any collateral security or 3rd party guarantee under any circumstances.

Applicant or Bank needs to pay some service charges. An Applicant of this Credit Linked Subsidy Scheme (Coir Udyami Yojana) can contact with bank for the service charges.

Eligibility Conditions for This Credit Linked Subsidy Scheme Loan

• A person should not be a minor i.e he/she should be at least 18 years of age and should be an Indian Resident.
• Loan under this Credit Linked Subsidy Scheme is only available for projects for the production of Coir Fiber/Coir Yarn/Coir products etc. or any similar thing which comes in the Coir Sector.
• There is absolutely no income ceiling needed for this project. This means that even if your income is 0 you are still eligible for assistance under this Credit Linked Subsidy Scheme.
• The Assistance under this Credit Linked Subsidy Scheme will be given to individuals, Companies, Non-Governmental Organizations, Institutions registered under the societies registration Act 1860, Self Help Groups, Joint Liability Groups, charitable trusts, and Production Co-operative Societies, etc. But if someone is already taken some other scheme from the Central Government of India or the State Government of India for the same purpose of establishing Coir Related Business then he/she is not eligible. Because 1 person can not take double benefit for the same purpose.
• An applicant should also include a Certified copy of the caste/community certificate (along with loan assistance application) issued by the competent authority in case if he/she falls in other special categories.

Important Note:- Only one person of the same family can take this Credit Linked Subsidy Scheme (Coir Udyami Yojana) Benefit. The benefit is not available for Multiple people of the same family.

You can also read our post related to one of the best government schemes on health insurance.

Rules for Machinery and Accessories for this Credit Linked Subsidy Scheme Loan (Coir Udyami Yojana)

The Coir Accessories/Machinery/Tools bought from the manufacturer must comply with the rules set by the Coir Board from Time to Time. If Entrepreneur is facing the problems of power failure they should (it is optional, not mandatory) purchase a power generator for maximum utilization and usage of purchased machinery.

Entrepreneurship Development Program for This Credit Linked Subsidy Scheme Loan (Coir Udyami Yojana)

• This is a training program by Coir Board to the beneficiaries of the scheme. This training program is designed to help and create awareness among beneficiaries regarding various managerial functions such as Book Keeping, production, finance, banking formalities, and other managerial functions which will help the beneficiaries in his/her business
• This is a 5-day training program and it is mandatory to attend this training program. it is a win-win for beneficiaries entrepreneurs that the Government is also providing training to understand the various aspects related to managerial functions and other functions related to the scheme.
• This training program will be conducted by the Coir Board either direct or with the help of Nodal Agencies.
• An amount of Rs. 2000/- per trainee towards to training material and other expenses will also be borne by Coir Board.

Criteria for Selection of Candidates for this Credit Linked Subsidy Scheme (Coir Udyami Yojana)

• The Selection Procedure will be based on First Come First Serve Basis. This means the person who will apply first will be given the first chance of taking the grant
• Entrepreneurship Development Program Training is mandatory for taking loan assistance under this Credit Linked Subsidy Scheme. The training can be taken before or after the application. But training is mandatory. A proper Training Certificate is given to the beneficiary by the officer concerned after completion of training.
• The training Certificate is also enclosed along with all the other documents and application forms at the time of submitting an application.
• The Regional Level Selection Committee will scrutinize the application. it can also ask some questions in interviews as to the entrepreneurship knowledge, sincerity to pay back the amount, marketing skills and knowledge, etc.
• After the satisfaction of the regional level selection committee, the selected candidates are sent to the bank for this Credit Linked Subsidy Scheme loan assistance.
• Then Bank will take its own decision whether to give a loan or not on the basis of the viability of each project. As per RBI instruction Bank can never demand any Collateral Security under this special Credit Linked Subsidy Scheme.
• If Bank rejects the application for any reason. then the bank will furnish the reasons for rejection of (loan in writing) to the applicant as well as to the Coir Board Field Office. At this stage normally banks do not reject any application and grant or loan assistance is passed.

Execution of Bond by Beneficiary for this Special Credit Linked Subsidy Scheme Loan (Coir Udyami Yojana)

The biggest benefit of this Credit Linked Subsidy Scheme is that there is no requirement of any type of collateral security for obtaining this Credit Linked Subsidy Scheme Loan assistance from Coir Board. That’s why one needs to execute at least a bond stating that the amount of loan is utilized only for Coir Business Purpose, not for personal purposes.

• The Machinery/Equipment will be maintained Properly by the beneficiary
• The Machinery will not be shifted from the place of operations i.e where business activities are being performed
• The Purchased Machinery and tools will be used only for running coir units.
• The Beneficiary will run the Coir Business Unit (where Coir business activities are being Performed) for at least 5 Years.
• The Machinery and all the tools which are specifically purchased for the purposes of running the Coir Business will not be sold without taking prior approval of the Coir Board.
• The Beneficiary should state in the bond that the Coir Board Officer or State Government Officer can check and inspect the Premises at any time for verification regarding the work is going smoothly. This is done normally to avoid Fraudulent Practices. Officers normally do not check at inappropriate times they may only check during business hours.
• The Beneficiary would Abide by law, rules, and instructions given by Coir Board or/and State Government from time to time.
• If any of the above or all of the above conditions failed then the beneficiary under the Coir Udyami Yojana (this Credit Linked Subsidy Loan) will have to pay the entire amount taken with Interest in which interest rate is decided by Coir Board.
• The Beneficiary under Coir Udyami Yojana (this Credit Linked Subsidy Scheme) must produce all the documents (including digital records) and invoices related to the purchase of machinery and construction of the shed (if asked and demanded by Coir Board Officer) so that the exact amount of grant can be estimated and Credit Linked Subsidy Scheme loan assistance can be given to beneficiary accordingly.
• If Grant (Credit Linked Subsidy Scheme) is taken in a fraudulent manner by producing false information or producing any fake documents or hiding any important information then in that case also all the amount under this scheme will be recovered from the beneficiary with interest.
• or the unit (factory or office or establishment) is being closed before 5 years from the commencement then also the amount will be recovered from a beneficiary with interest except if there is the temporary closure of the factory of up to 6 months due to unavoidable circumstances then the amount will not be recovered.

Physical Verification of place by Coir Board Officer

Complete physical verification of the actual place, as well as the working status of every single place, set up under Coir Udyami Yojana, will be done by Coir Board either by themselves or through the various organizations of State Government and/or, by giving the work to professional bodies organizations having expertise in this field.

List of Documents for Credit Linked Subsidy Scheme Loan (Coir Udyami Yojana)

• Prescribed Application Form for Credit Linked Subsidy Scheme Assistance.
• Proof Certificate of Coir Industry Experience.
• Copy of title deed of the property on which you want to set up your business or you had already set up your business.
• Invoices/ Bills of the number of machinery you had purchased or want to purchase in the future.
• Training proof that you had taken free training from Coir Board.
• If you are SC/ST. then you should submit the caste certificate.
• Industrial Establishment Certificate issued by DIC.
• Complete Project Profile along with Project Report.
• Construction of Workshed certificate duly certified by a Chartered Engineer.
• You can attach any other document also which can be beneficial in this assistance.

How to apply for this Credit Linked Subsidy Scheme (Coir Udyami Yojana) Loan Assistance

Coir Board Officers and their customer support executive are very nice. they will guide you on how to apply for the grant under this scheme. You can also check all the procedures from Coir Services website.

The Coir Board also provides support in marketing and sales Promotion-related activities under this scheme.

Contact and complete details of the Jurisdiction Offices and their Phone Numbers for This Special Credit Linked Subsidy Scheme Loan

For the Various States	Authorized Office
Tamil Nadu, Pondicherry, Andaman & Nicobar Islands	Coir Board Regional Office, Door No.103, Vallalar Street, Venkatesha Colony, Pollachi – 642001 Tel/Fax : 04259-222450
Bihar, Jharkhand, and Odisha	Coir Board Regional Office, Jagamara (Udyogpuri), P.O.Khandagiri, Bhubaneswar-751 030, Odisha, Phone:0674-2350078
North Eastern Region	Coir Board Sub Regional Office, ASIDC Complex, Bhamuni Maidan, Guwahati-781022 Phone:0361-2556828
New Delhi, Jammu, Punjab, Chandigarh, Uttar Pradesh and the other Northern States	Coir Board Public Relation Office, Rajiv Gandhi Handicrafts Bhavan, IInd Floor, Baba Khadag Singh Marg, Cannought Place, New Delhi-110 001, Phone: 011- 23341388, 23747766
Andhra Pradesh	Coir Board Regional Office, Swaraj Nagar. A.C. Gardens Rajahmundry-533 101 Phone:0883-24320196
Lakshadweep, Pathanamthitta, Kollam and all Districts of Kerala except for Thiruvananthapuram,	Office of the Coir Mark Scheme, Ababeel Complex, 1st Floor, Near SBT main Branch, CCSB Road Alleppey – 688 011 Phone: 0477 – 2254325
Gujarat, Goa, Maharashtra, and Karnataka	Coir Board Regional Office, No. 3A, Peenya Industrial Area, Near TVS Cross, Peenya, Bangalore – 560 058 Phone: 080 – 28375023
Thiruvananthapuram, Kollam and Pathanamthitta Districts in Kerala	Coir Board Regional Office, Near Attingal Municipal Town Hall, Attingal.P.O. Trivandrum – 695 101. Phone: 0470-2628624
West Bengal	Coir Board Sub Regional Office, New Secretariat Building, C-Block, Ground Floor, 1 Kiran Sankar Roy Road, Kolkata-700 001 Phone:033-22625735

The Credit of this table goes to coirservices.gov.in