The Shrama Shakthi Scheme is one of the innovative state government schemes undertaken by the Karnataka Government, providing training and skill development with low-interest loans to minority artisans. This Sarkari Yojana enables entrepreneurs from the minority community to gain self-reliance, artistic growth, and economic independence in Karnataka.
In this article, you will get the detailed information about the Shrama Shakthi Scheme, its benefits, objectives, eligibility, application process and much more.
Overview
The table below gives the key insights of the Shrama Shakthi Scheme: Read the table below to understand it better:-
| Feature | Details |
|---|
| Scheme Name | Shrama Shakthi Scheme |
| Launched by | Government of Karnataka |
| Managed by | Karnataka Minority Development Corporation (KMDC) |
| Eligibility | Minority community members aged 18-55 with an annual income below ₹3.5 lakh |
| Loan Amount | ₹50,000 |
| Interest Rate | 4% per annum |
| Repayment Term | 36 months |
| Training Provided | Artistic and technical skills development |
| Selection Panel | Includes Deputy Commissioner, Zilla Panchayat CEO, Lead Bank Manager, and other district officials |
Latest Updates On Shrama Shakthi Scheme
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The scheme has recorded a surge in demand, with over 18,000 applications received in the Dakshina Kannada district alone, exceeding the target of 114 beneficiaries.
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Online application processes have been enhanced: applicants can now fill out forms via the state portal, upload documents and track status digitally.
Also Read: How The Udyogini Scheme Is Empowering Women Entrepreneurs In Karnataka?
What Is The Shrama Shakthi Scheme?
The Shrama Shakthi Scheme is a government scheme by Karnataka Minority Development Corporation (KMDC) for minority artisans and small-scale entrepreneurs. This scheme provides low-interest loans and skill development training to artisans for the betterment of their artistic and technical skills.
The eligible artisans under this scheme will get a loan of ₹50,000 and the same is to be repaid within three years with an interest rate of 4%. For repayment within the stipulated time, a back-end subsidy of 50% of the amount is provided to the beneficiaries on repayment of 50% of the loan amount within the given period.
Benefits Of Shrama Shakthi Scheme
It provides various benefits to artisans & small-scale entrepreneurs. Few are listed below:
1. Financial Support: You will get a Loan of ₹50,000 at 4% interest.
2. Skill Development: Artisans will be able to enhance skills regarding art and technology.
3. Repayment Incentive: If 50% of the loan repayment is done within 36 months, the remaining shall become a subsidy.
4. Economic Empowerment: This will help the socio-economic life of the minority artisans to gain prominence as they are sure of financial independence and related business skills.
Objectives
The Shrama Shakthi Scheme aims to:
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Support the economic improvement of the minority artisans.
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Improving artistic as well as technical expertise among Scheduled Caste Entrepreneurs.
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Establish financial viability by making easy crediting facilities available with easy rates of interest.
What Is The Selection Process Of The Shrama Shakthi Scheme?
The selection of beneficiaries under the Shrama Shakthi Scheme is carried out by a panel of district officials to ensure transparency and fair distribution. The panel consists of:
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Deputy Commissioner of the District – Chairman
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CEO of Zilla Panchayat – Vice-Chairman
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Lead Bank Manager of the District – Member
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District Regional Transport Officer – Member
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District Officer, Minority Welfare Department – Member
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District Manager of KMDC – Member Secretary
What Is The Eligibility Criteria Of The Shrama Shakthi Scheme?
To qualify for the Shrama Shakthi Scheme, applicants must be fit under the category of the below-mentioned criteria:-
1. The applicant must be a permanent resident of Karnataka.
2. Belong to a religious minority community.
3. The candidate's age should have been between 18 and 55.
4. Family income below ₹ 3.5 lakh/annum.
5. It should not have received benefits from other KMDC schemes (except the Arivu Scheme) in the past five years.
6. They should not be government employees or Public Sector Unit workers.
Reward Details
The repayment details are mentioned below, read the pointers below to understand it better:-
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Loan Amount: ₹50,000 with a 4% annual interest rate.
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Repayment Duration: 36 months, with a 50% loan subsidy if half the loan amount is repaid within the term.
Also Read: Karnataka Compulsory Gratuity Insurance Rules
What Is The Application Process Of The Shrama Shakthi Scheme?
The application process includes online steps, and it is pretty simple and smooth. Just follow the steps mentioned below:-
Step 1: Visit the official portal of the relevant state-implementing body such as the Karnataka Minorities Development Corporation (KMDC).
Step 2: Select the “Shrama Shakthi Scheme / Loan Scheme” option from the schemes list.
Step 3: Register or log in using your Aadhaar, mobile number and email.
Step 4: Fill the online application form: provide personal details (name, address, minority community details), business plan/project report, and bank account information.
Step 5: Upload required documents (see list below) and submit the application. Download/print the filled form.
Step 6: Submit the printed application along with physical copies of the documents to the district-selection panel or KMDC office. Later, application is reviewed and sanction letter issued.
Step 7: On approval, the loan/subsidy is credited to the beneficiary’s bank account; repayments must follow scheme rules for eligibility of subsidy conversion.
Documents Required For The Shrama Shakthi Scheme
The list below consists of the list of all the required documents. The applicants need to submit the following documents:
1. Printed application form from the online portal
2. Two recent passport-sized photographs
3. Caste and income certificate
4. Copy of Aadhaar card
5. Business project report
6. Bank passbook copy
7. Self-Declaration Form
8. Self-Declaration Form from Surety
Conclusion
The Shrama Shakthi Scheme is Karnataka's attempt to empower the minority artisan community through necessary financial and training inputs. Accessible loans, structured training, and a supportive repayment policy under this Sarkari Yojana encourage artisans to grow their businesses, maintain financial stability, and contribute to the state's vibrant cultural economy. This initiative not only helps preserve traditional artistry but also strengthens the economic foundation of minority communities across Karnataka.
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