The Karnataka government has started the Shrama Shakti Scheme 2025 to support minority communities in the state to begin their own businesses. This scheme offers low-interest loans along with skill training to eligible candidates, helping them become entrepreneurs. If you’re from a minority group in Karnataka and want to start a small business, this scheme can provide financial help and training.
About Karnataka Shrama Shakti Scheme 2025
The Shrama Shakti Scheme aims to encourage entrepreneurship among minorities in Karnataka. The Karnataka Minorities Development Corporation Limited (KMDC) manages this scheme. You can get a loan of up to Rs. 50,000, with a low interest rate of 4%. The loan term is 36 months, and the government also offers training in various technical and artistic skills along with the loan.
To qualify, applicants should be between 18 and 55 years old, have an annual income below Rs. 3.50 lakh, and belong to minority communities like Muslim, Christian, Sikh, Jain, Buddhist, or Parsi. If any family member works in Central, State, or Government jobs, you cannot apply.
Main Highlights of Shrama Shakti Loan Scheme
| Scheme Name | Shrama Shakti Scheme |
| Launched By | Government of Karnataka |
| Target State | Karnataka |
| Loan Amount | Up to Rs. 50,000 |
| Interest Rate | 4% |
| Loan Repayment Period | 36 months |
| Official Website | https://kmdc.karnataka.gov.in/ |
Objectives of Karnataka Shrama Shakti Scheme
This scheme is made to help unemployed youth from minority communities in Karnataka start small businesses or become self-employed. Many young people are without jobs or earning too little to support their families. With this scheme, candidates can get financial help and skill training to start their own businesses. If you repay half of the loan, Rs. 25,000 of the amount can be treated as a subsidy, which lowers your loan burden.
Main Benefits You Can Get
- Financial loan up to Rs. 50,000 at low interest
- Skill training in different technical and artistic areas
- Loan repayment over 36 months, making it easier to manage
- After paying back half the loan, Rs. 25,000 may be treated as a subsidy
- Support specifically for minority communities in Karnataka
Who Can Apply? Eligibility Criteria
- Must be a permanent resident of Karnataka
- Age between 18 and 55 years
- Annual family income below Rs. 3.50 lakh
- Belong to minority communities like Muslim, Christian, Sikh, Jain, Buddhist, or Parsi
- No family member employed in Central, State, or Government sectors
- Should not have defaulted on previous KMDC loans
- No family member should have benefited from other KMDCL schemes in the last 5 years, except Arivu Scheme
Documents Needed for Application
- Passport size photo
- Aadhaar card
- Income certificate
- Project report explaining your business plan
- Surety self-declaration form
- Self-declaration form
- Bank account details
- Proof of residence in Karnataka
- Completed online application form
- Caste certificate
- Minority certificate
How to Apply for Karnataka Shrama Shakti Scheme 2025
- Visit the official KMDC website.
- Go to the ‘Schemes’ section and select ‘Shrama Shakti Loan Scheme.’
- Read all details about the scheme carefully.
- Click on ‘e-Services’ and then choose ‘Online Application.’
- Under ‘Loan / Subsidy for Minorities,’ click ‘Apply Online.’
- Select ‘Application Form’ and verify your mobile number by entering it and clicking ‘Verify.’
- Fill out the form with your personal details, income, community, and other required information.
- Submit the form, then print it for your records.
- Attach all necessary documents to your printed application.
- Submit the complete application to the District Selection Panel.
Details About Scheme Rewards and Loan Repayment
- Loan amount of Rs. 50,000 to be paid back within 36 months.
- If you return half the loan, Rs. 25,000 will be considered a subsidy.
- The loan interest rate is 4%.
Contact Information
If you have questions or need help with the Shrama Shakti Scheme, contact the Karnataka Minorities Development Corporation at:
Address:
39-821, 2nd Floor,
KMDC Bhavan,
Subedar Chatram Road,
Sheshadripuram,
Bengaluru – 560020, Karnataka
Phone: 080-22860999, 080-22861226
Email: kmdc.ho.info@gmail.com