Central GovernmentVerified

Coir Udyami Yojana

Ministry: Ministry Of Micro, Small and Medium Enterprises

The scheme "Coir Udyami Yojana" by the Coir Board, Ministry of MSME, Government of India, aims to modernize the coir industry and generate rural employment. It offers credit-linked financial assistance to establish coir units by eligible applicants.

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Official Source ↗

About This Scheme

Coir Udyami Yojana is a credit-linked subsidy scheme for setting up coir units with a project cost up to ₹10,00,000/- plus one cycle of working capital, which shall not exceed 25% of the project cost. Working capital will not be considered for subsidy. Coir Udyami Yojana is a Central Sector Scheme to be administered by the Ministry of Micro, Small and Medium Enterprises. The Scheme will be implemented by the Coir Board a statutory organization under the Ministry of MSME, as the Nodal Agency at the national level. > Financial Institutions providing loan under CUY: - All the Scheduled Commercial Banks listed in the 2nd schedule of the RBI Act - All Regional Rural Banks - Co-operative Banks that are Member Lending Institutions (MLIs) of the Credit Guarantee Trust Fund for MSME, as well as through SC/ST/OBC Finance and Development Corporations.

Benefits

₹10.0 L

Beneficiary’s Contribution (of Project Cost): 5%
Bank Credit: 55%
Rate of Subsidy (of project cost): 40%

Note:

The maximum admissible cost of the project is ₹10,00,000/- plus working capital. Working capital shall not exceed 25% of the project cost. Subsidy will be computed excluding the working capital component.
The Bank will sanction 95% of the project cost after adjusting 5% beneficiary contribution deposited and disburse the full amount of the project cost, including the beneficiary contribution, in installments for setting up the project.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
Prescribed Application Form for Scheme assistance
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Copy of the Title Deed of the property on which the unit is proposed to be set up/already located
✦
Proof of Coir Industry experience
✦
Proof of training availed from the Coir Board
✦
Machinery is proposed to be purchased along with the Invoice
✦
Industrial Establishment Certificate issued by the District Industries Centre (DIC)
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Plan & Estimate for the construction of a workshed duly certified by a Chartered Engineer
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Project Profile of the proposed project
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In case of SC/ST, a copy of the Caste Certificate
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Any other supporting documents

✦ Required ◦ Optional

How to Apply

IIn-person

Step 1: The applicant must fill out the prescribed application form(refer Part-B) and attach all required documents.

Step 2: Apply to the nearest Field Office of the Coir Board.

Step 3: Undergo a mandatory 5-day Entrepreneurship Development Programme (EDP) before or after submission, but before bank recommendation.

Step 4: The application is scrutinized and forwarded to the Regional Level Selection Committee.

Step 5: The committee evaluates and forwards approved cases to the bank.

Step 6: On bank approval, the applicant deposits 5% beneficiary contribution within 30 days.

Step 7: Coir Board deposits a subsidy (40%) with the bank.

Step 8: The bank disburses a term loan within 30 days of the subsidy deposit.

Step 9: The project must be completed within 6 months.

Step 10: Coir Board and the bank conduct physical verification before final subsidy adjustment.

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Quick Info

Level: Central Government
Max benefit: ₹10.0 L