Arunachal Pradesh Chief Minister’s Soft Loan Scheme for ITI Pass Outs

Arunachal Pradesh Government under its Chief Minister’s Soft Loan Scheme for ITI Pass Outs, will provide the benefit of a short-term collateral-free capital loan up to Rs. 3 lakh with capital and interest subsidy to ITI passed graduates. Rs. 15,000/- assistance for the Tool Kit will also be provided.
Read the full article for complete details.

Introduction of Arunachal Pradesh Chief Minister’s Soft Loan Scheme for ITI Pass Outs: A Brief Insight

• Arunachal Pradesh Government launched the Chief Minister’s Soft Loan Scheme for ITI Pass Outs on 06-11-2025.
• The government observes that Industrial Training Institute (ITI) pass-out students have some specialised technical skills.
• Despite this, many of them face challenges to secure employment or to start their own entrepreneurship due to a lack of capital and business skills.
• Keeping these things in mind, Arunachal Pradesh started the CM Soft Loan Scheme for ITI Pass Outs with an objective to empower and encourage them to start their own self-employment business/ venture.
• Department of Skill Development and Entrepreneurship of the Arunachal Pradesh Government is the implementing department of this scheme.
• Arunachal Pradesh Government’s Chief Minister’s Soft Loan Scheme for ITI Pass Out is specifically started to target those ITI graduates who passed recently or have graduated within the past three years from ITIs situated within Arunachal Pradesh.
• Through this initiative, the Government will provide the benefit of subsidised loans and the required tools and equipment to start self employed venture.
• The benefit of a term loan up to 3 lakh in 2 tranches with capital and interest subsidy will be provided to all eligible applicants under the Government of Arunachal Pradesh’s Chief Minister’s Soft Loan Scheme for ITI Pass Outs.
• The government will provide 25% of capital subsidy and 7% of interest subsidy on bank interest under this scheme.
• Apart from that, financial assistance of Rs. 15,000/- will also be provided to purchase tools and equipment under this scheme.
• There will be No collateral security is required and the repayment period of first tranche loan is 18 months and forthe  second tranche, the repayment period is 30 months.
• Beneficiary Applicant can repay the loan in 12 EMIs (Instalments) after reducing the 6-month moratorium period.
• In the initial year of the implementation of the Chief Minister’s Soft Loan Scheme for ITI Pass Outs, 150 ITI graduates will be selected.
• Based on the success of the scheme, this scheme will then be further extended by the Arunachal Pradesh Government and 300 applicants will be selected next year.
• Arunachal Pradesh allocated Rs. 2 crore budget for the smooth implementation of the Chief Minister Soft Loan Scheme for ITI Pass Outs to establish 150 micro enterprises in the first year of implementation.
• Application Form of this scheme is available on the Official Website of the Department of Skill Development and Entrepreneurship and can also be collected from the ITIs.
• The last date to apply for the Chief Minister’s Soft Loan Scheme for ITI Pass Outs is 31st of December 2025.
• Central Government also provide skill training and financial support for the toolkit under “Pradhan Mantri Vishwakarma Yojana”.

Benefits Provided to Eligible Beneficiaries

• Arunachal Pradesh Government under its Chief Minister’s Soft Loan Scheme for ITI Pass Outs will provide the following benefits to all eligible applicants :-

  • Loan Facility

    Collateral-free short-term loans up to Rs. 3 Lakh will be provided. Rs. 1 Lakh Loan will be provided in the 1st Tranche. Rs. 2 Lakh Loan will be provided in the 2nd Tranche. The loan amount of the 2nd Tranche will be provided only when 75% loan amount of the 1st Tranche is repaid.

    Subsidy Benefit

    Subsidy of 25% on disbursed loan amount. Interest Subsidy of 7% on accrued bank interest for 1.5 years and 2.5 years, respectively. The applicant will have to contribute a 5% margin money of the project cost. Rs. 5,000/- margin money for 1st Tranche Loan of Rs. 1 lakh. Rs. 10,000/- margin money for 2nd Tranche Loan of Rs. 2 Lakh. Loan Insurance Amount will also be borne by the Applicant.

    Tool Kit Assistance

    Financial Assistance to Purchase Necessary Tools and Equipment. Rs. 15,000/- Monetary Assistance will be provided to Beneficiaries. Assistance will be provided by reimbursing the amount after submitting bills or by distributing Redeemable E-Vouchers.

    Repayment Period

    18 Months for 1st Tranche Loan. 30 Months for 2nd Tranche Loan. There will also a moratorium period of 6 months. The applicant will have to pay a minimum of 12 EMIs without failing.

Eligibility Conditions Required to be Fulfilled

• Short Term Capital Loan up to Rs. 3 lakh with capital and interest subsidy and the financial assistance of Rs. 15,000/- for a tool kit will be provided to only those beneficiaries who fulfil the below-mentioned eligibility criteria of Arunachal Pradesh Government’s Chief Minister’s Soft Loan Scheme for ITI Pass Outs :-
  • The applicant should be a Permanent Resident of Arunachal Pradesh.
  • Beneficiary Applicant should be belong to the Arunachal Pradesh Scheduled Tribe (APST) Category.
  • The Age of the Applicant should be 18 years or more.
  • Beneficiary Student should have completed their ITI Training within the preceding 3 years from this academic year.
  • Assistance under this scheme is only applicable for new business ventures.
  • Applicant should not have availed loans earlier from any Central or State Government Schemes.
  • Beneficiary Applicant should not be a bank defaulter.
  • This scheme does not cover the cost of land.

Documents Required to be Attached

• The following documents will be required to be attached with the Chief Minister’s Soft Loan Scheme for ITI Pass Outs Application Form :-
  • Address Proof.
  • Identity Proof.
  • Proof of Age.
  • Aadhaar Card of the Applicant.
  • APST Category Certificate.
  • ITI Training Certificate.
  • Proposed Business Address Proof.
  • Quotation for Equipment, Machinery and Other Fixed Assets.
  • Any Other Documents as asked by the Department.
  • Mobile Number.
  • Email ID.
  • Recent Colour Photo.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

• Eligible ITI Pass Out Graduates can apply for the benefits of the Chief Minister’s Soft Loan Scheme for ITI Pass Outs through the Application Form.
• Chief Minister’s Soft Loan Scheme for ITI Pass Outs Application Form can be collected from the administration officer of your respective ITI.
• Application Form can also be downloaded from Department of Skill Development and Entrepreneurship Official Website.
• Collect or download the Application Form and fill in the following details as mentioned below :-
  • Personal Details – Name, DOB, Gender, Contact Number, Email, Address, Aadhaar.
  • ITI Training Details – ITI Name, Trade Name, Year of Passing, ITI Certificate Number.
  • Proposed Business Details – Proposed Business Name, Description of Business Idea, Business Address.
  • Cost of Project – Building/ Site Development, Machinery and Equipment, Asset/ Furniture, Working Capital etc.
  • Tools, Equipment and Machinery Cost.
  • Transportation, Installation Cost.
• The applicant will have to attach all the required documents to the Application Form.
• Submit the Chief Minister’s Soft Loan Scheme for ITI Pass Outs Application Form along with all the attached documents in the Office of your ITI’s Principal.
• Preliminary Verification of the received application form and documents will be done by the Principal of the respective ITI.
• Eligible and Selected Applicants Application Form will then be forwarded to the Department of Skill Development and Entrepreneurship for further approval.
• The empowered committee of Department of Skill Development and Entrepreneurship will conduct a personal interview with each selected candidate and examine their aspiration to be an entrepreneur.
• Based on the Personal Interview, the empowered committee will select the applicants and sanction the Tool Kit Seed Money and send their proposal to a financial institution/ bank to examine and sanction the loan amount.
• Beneficiary Applicant can contact the Department of Skill Development and Entrepreneurship for any help or assistance required regardingthe  Government of Arunachal Pradesh’s Chief Minister’s Soft Loan Scheme for ITI Pass Outs.
• Applications are open and the last date to apply for this scheme is 31-12-2025.

Important Links Available

• Application Form of Arunachal Pradesh Chief Minister’s Soft Loan Scheme for ITI Pass Outs.
• Guidelines of Arunachal Pradesh Chief Minister’s Soft Loan Scheme for ITI Pass Outs.
• Official Website of Department of Skill Development and Entrepreneurship Arunachal Pradesh.

Contact Details in Case of Help Needed

• Contact Number of Department of Skill Development and Entrepreneurship Arunachal Pradesh :-
  • 9863429605.
• Contact Email of Department of Skill Development and Entrepreneurship Arunachal Pradesh :-
  • sdarunachal@gmail.com.

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