What are the Eligibility Criteria and Documents Required for Coir Udyami Yojana?
Eastern Eye Staff
To facilitate sustainable development of the coir industry in India, the Ministry of MSME (Micro, Small, and Medium Enterprises) introduced the Coir Udyami Yojana (CUY). The CUY is a credit-linked scheme that helps entrepreneurs set up units to manufacture and process coir. The CUY is a mix of subsidy and loan, where the owner of the coir unit is expected to contribute a small amount to the project. For entrepreneurs looking for profitable business ventures to invest in, consider setting up a coir manufacturing unit. In addition to the financial assistance offered by the CUY, you can easily get a business loan to fund the remainder of your project.
Here is everything you should know about the CUY:
The CUY benefits and highlights
- Offers financial assistance of up to Rs. 10 lakhs in addition to working capital, which is capped at 25% of the project cost.
- Limits the beneficiary contribution to 5% of the total project outlay.
- Provides rate of subsidy 40% of the project.
- Assures bank credit rate of 55%.
If you need assistance to fulfill the working capital requirements of the project, you can check your business loan eligibility and apply for a business loan from a trusted financial company. The loan amount will be exclusive of the Rs. 10 lakh limit proposed by the CUY. However, the subsidy will be given excluding the working capital component.
The CUY eligibility
The CUY offers subsidy on the production of coir fiber, yarn, and related finished products.
|Age||Above 18 years of age|
|Applicants||● Individual (one person per family)|
● Non-governmental Organization (NGO)
● Self-Help Groups
● Registered Society
● Joint Liability Group
● Charitable Trust
● Production Co-operative Societies
If you have already availed of a subsidy in another government scheme, you cannot apply for the CUY. There is no income bar for the scheme. This implies that people earning a low income can also apply for the scheme. You can take advantage of the low business loan interest rates and use a business loan to meet the working capital needs of the project. These loans have easy eligibility criteria and allow you to pay back the amount through flexible business loan EMI. Use the loan EMI calculator to precisely know the sum you would need to pay periodically.
The CUY documents
- KYC documents for individual applicants and registration documents for non-individual applicants.
- Cast certificate if applicable.
- Certified copy of the company bylaws (for non-individual applicants).
- Detailed project costs, including the capital, machinery, building, employees, etc.
- A thorough report of the working capital requirement and funding sources. This is applicable for people availing of a business loan to fulfill their capital requirements.
- Property documents of the proposed coir manufacturing unit.
- Proof of experience in the coir industry.
- EDP (Entrepreneurship Development Program) training certificate.
- Industrial establishment certificate (Issued by DIC).
- Cost estimate and plan of civil construction work (certified by the Charter Engineer).
Schemes such as the CUY open a lucrative opportunity for entrepreneurs. With the subsidy offered under the CUY and the business loan available in the market, it becomes easy for you to tap the opportunity. You can get competitive business loan interest rates without any hassle.
Chetan Sharma is a blogger and digital marketer by profession. He handles a network of multiple websites like Selina Concise & various others. He helps clients all over the world to achieve digital success.