India is a diverse and pluralistic country, home to various religious communities that have coexisted for centuries. While the majority of the population follows Hinduism, India is also home to several religious minority communities, contributing to the rich tapestry of its cultural and religious landscape. The major religious minorities in Karnataka include Muslims, Christians, Sikhs, Buddhists, Jains, and Parsis. This article will discuss the Karnataka Shram Shakti Scheme 2023 in detail which is a scheme for the religious minority to preserve their traditional business or to start a small business. In case you have any doubt regarding the scheme, it is advised to mail us or comment on the article so that we can reach out to you with help.
What is the Karnataka Shram Shakti Scheme?
Karnataka Shram Shakti Scheme is a Traditional Artisans financial assistance scheme made for the religious minorities in Karnataka. Under this program, aimed at fostering the development of traditional skills within the religious minority community, entrepreneurs are offered training in both artistic and technical skills. This scheme provides loans to the artisans who want to upgrade their skills thereby improving their livelihood. The scheme covers about 45 professions or occupations. Also, 33% of the allotment will be reserved for women.
Under this scheme, the eligible artisans will get a loan of up to Rs 50,000 at an interest rate of 4%. If you are one of the eligible artisans, you are advised to read the whole article.
| Karnataka Shram Shakti Scheme 2023 Key Highlights | |
| Karnataka Shram Shakti Scheme Launch Date | 2005-06 |
| Karnataka Shram Shakti Scheme Official Website | Official Website |
| Karnataka Shram Shakti Scheme Objective | To provide business loans to the religious minorities of the state. |
| Karnataka Shram Shakti Scheme Loan Amount | Rs 50,000 ( previously it was Rs 25,000) |
| Karnataka Shrama Shakti Scheme Interest Rate | 4% |
| Karnataka Shram Shakti Scheme Loan Tenure | 3 Years (36 months) |
| Karnataka Shram Shakti Scheme Mode of Application | Online |
| Karnataka Shrama Shakti Scheme Annual Income Limit | Rs 6 Lakh Per Annum |
| Karnataka Shram Shakti Scheme Age Limit | 18 – 55 years |
| Karnataka Shram Shakti Scheme Helpline Number | 8277799990 |
Karnataka Shram Shakti Scheme Objective
- The primary objective of the Karnataka Shram Shakti Scheme is to support individuals in continuing their existing businesses, initiating small enterprises, or enhancing their current business ventures.
- Participants can avail themselves of a loan amounting to Rs. 50,000 with a nominal interest rate of 4%, to be repaid in 36 monthly installments.
- Through this scheme, the eligible artisans will be able to improve their livelihood as the loan is given at the lowest interest rate repayable at 36 months which is quite a very long time.
Karnataka Shram Shakti Scheme Benefits
Before you apply for the Karnataka Shrama Shakti Scheme, it is imperative to check the benefits that you are going to get. There are numerous benefits of the Karnataka Shram Shakti Scheme therefore you should watch the list of benefits below very carefully.
- Through this scheme, the artisans will be able to upgrade their skills and therefore, take their existing business to the next level.
- The artisans do not have to go to money lenders to take the loan at a higher interest rate.
- They don’t need to leave their existing business due to lack of demand.
- They will get a loan of Rs 50,000 repayable at 3 years which is a decent amount of time to repay and make the business work.
- Also, if you will be able to repay half of the loan in these 36 months, the rest of the loan will be a backend subsidy which is great for the artisans, They have to pay only half of the loan amount.
Karnataka Shram Shakti Scheme Eligibility Criteria
It is imperative to check the complete Karnataka Shrama Shakti Scheme eligibility criteria to have an idea of whether you are eligible for the scheme or not. Here is the complete list of eligibility criteria that you must check if you are interested in applying for the Karnataka Shram Shakti Scheme.
- Applicants must be a part of the State Religious Minority Community.
- The applicant should hold permanent residency in the State.
- The age range for eligible applicants is between 18 and 55 years.
- The total annual income of the applicant’s family from all sources must not exceed Rs. 6.00 lakh per annum.
- No member of the applicant’s family should be employed by the State, Central Government, or any PSU.
- The applicant must not have previously obtained any loans from KMDC.
Karnataka Shram Shakti Scheme Documents Required
Check the complete list of Karnataka Shrama Shakti Scheme documents that are required for the Karnataka Shram Shakti Scheme application form.
- Completed online application.
- Two recent passport-size photographs of the beneficiary.
- Certification of caste and income.
- Photocopy of the Aadhaar card.
- Business project report.
Karnataka Shram Shakti Scheme Loan Amount
As mentioned above, the Karnataka Shram Shakti Scheme is an artisans’ financial scheme to upscale their existing business. This will be done by upgrading their skill. Through the loan amount which is Rs 50,000, one can do all of that and can upscale their business shortly. The loan amount should be repaid within 3 years. The interest rate is 4% for the same.
Upon successful repayment of 50% of the loan within the stipulated 36 months, the remaining 50% of the loan is converted into a back-end subsidy. However, if the borrower fails to repay the entire loan within the specified timeframe, 50% of the back-end subsidy will be treated as a loan, subject to repayment terms. This scheme is designed to provide financial support and encourage the economic empowerment of religious minority entrepreneurs by combining training, affordable loans, and a subsidy structure that rewards timely repayment.
| Karnataka Shram Shakti Scheme Loan Amount | |
| Karnataka Shram Shakti Scheme Loan Amount | Rs 50,000 |
| Karnataka Shram Shakti Scheme Interest Rate | 4% per annum |
| Karnataka Shram Shakti Scheme Tenure | 3 years or 36 months |
Karnataka Shram Shakti Scheme Selection Committee/ Panel
Once you submit your application for the Karnataka Shram Shakti Scheme, it undergoes a thorough review by the selection panel. Upon successful scrutiny, if your application meets the criteria, the approved loan amount will be transferred directly to your bank account through a Direct Bank Account Transfer. The selection panel comprises the following.
- Concerned MLA of the respective Assembly Constituency – Chairman
- Member of the Legislative Council who is a permanent resident in the Taluk – Vice-Chairman.
- Concerned Taluk Tahsildar – Member
- Executive Officer of the concerned Taluk Panchayat – Member
- Concerned District’s Lead Bank Manager – Member
- Concerned District Joint Director, Commerce and Industry – Member
- Concerned District Deputy Directors, Women and Child Welfare Department- Member
- Concerned District Manager, Karnataka Minority Development Corporation- Member Secretary
Karnataka Shram Shakti Scheme Application Process
Before you apply for the Karnataka Shram Shakti Scheme, you must check the eligibility criteria and documents required for the same. This must be done beforehand so that you do not have to face any inconvenience in the future. Here is the Karnataka Shram Shakti Scheme step-by-step application process to fill in the Karnataka Shram Shakti Scheme application form.
- Visit the official website of Karnataka Minorities Development Corporation Limited Portal.
- Upon visiting the website, click on “Apply Loan”. This will take you to another page.
- After that, you need to enter your mobile number, and an OTP will be sent to your mobile number.
- After entering the OTP, you will be redirected to the Seva Sindhu Portal where you need to enter your Aadhar Card.
- After that start by filling and completing the application form.
- Print a copy of the duly filled application form.
- Submit the completed application form, along with all necessary documents, to the Selection Panel in your respective district.
- Following approval from the Selection Panel, the subsidy will be directly transferred to your bank account.
Karnataka Shram Shakti Scheme Track Application Status
After you have applied for the Karnataka Shram Shakti Scheme, you will receive an application number or Acknowledgment number so that you can track your application status. You can do so by yourself in the comfort of your home. You just need to visit the Karnataka Minorities Development Corporation Limited Portal. After that, click on “TRACK APPLICATION STATUS”.
After doing that, you can track the application status through two modes
- Registration ID
- Mobile Number
You can track the application status by entering any one of those and the Date of Birth.
Karnataka Shram Shakti Scheme Loan Repayment Process
In case you want to repay the loan you took, there is a detailed process for that.
- Visit the official website of Karnataka Minorities Development Corporation Limited Portal.
- After that click on the “LOAN REPAYMENT” tab.
- You need to click on one of the tabs based on the loan you have taken i.e. “Loan Repayment Before 2021-22” or “Loan Repayment After 2021-22”.
- After clicking on your desired tab, you have to enter your registered mobile number.
- An application will be displayed on the screen where you have to pay the loan through credit/debit/UPI.
Important Links for Karnataka Shram Shakti Scheme
- Karnataka Shrama Shakti Loan Scheme Guidelines.
- Karnataka Shrama Shakti Scheme Self Declaration Form.
- Karnataka Shrama Shakti Scheme Surety Self Declaration Form.
- Karnataka Shrama Shakti Loan Scheme Online Application Form.
- Karnataka Shrama Shakti Loan Scheme Registration.
- Karnataka Shrama Shakti Loan Scheme Application Status.
Karnataka Shram Shakti Scheme FAQs
What is the Karnataka Shram Shakti Scheme?
Karnataka Shram Shakti Scheme is a Traditional Artisans financial assistance scheme made for the religious minorities in Karnataka. Under this scheme, you will get a loan of Rs 50,000 at 4% interest rate.
Who is eligible to benefit from the Karnataka Shram Shakti Scheme?
Individuals belonging to the State Religious Minority Community in Karnataka are eligible to avail the benefits of this scheme.
What is the loan amount offered under this scheme?
Under the Karnataka Shram Shakti Scheme, individuals from religious minority communities can receive a loan of ₹50,000.
Is there a provision for training under this scheme?
Yes, religious minority community entrepreneurs will receive training as part of the Karnataka Shram Shakti Scheme.
What is the age limit for applying to this scheme?
Applicants must be between 18 to 55 years of age to be eligible for the Karnataka Shram Shakti Scheme.
What documents are required for application under this scheme?
To apply for the scheme, you need to submit the printout of the online application form, along with the Beneficiary’s latest two passport-size photos, caste and income certificate, copy of Aadhaar card, project report of the business, copy of bank passbook, self-declaration form, and a self-declaration form from the surety to the selection panel.
