Karnataka Vrutti Protsaha Loan Scheme | Government Schemes Updates

Collateral-free business Loan of Rs. 1,00,000/- will be provided by the Karnataka Government under the Vrutti Protsaha Loan Scheme. 50% is the loan amount and a 50% subsidy on the loan amount will be provided.
Read here to get complete details about the scheme.

Karnataka Vrutti Protsaha Loan Scheme Highlights
Scheme Name	Karnataka Vrutti Protsaha Loan Scheme.
Date of Launch	2023.
Benefits Provided	Business Loan of Rs. 1,00,000/-.
Eligible Beneficiaries	Minority Category People of Karnataka.
Responsible Agency	Karnataka Minorities Development Corporation Limited.
How to Apply	Vrutti Protsaha Loan Scheme Online Application Form.
Free Scheme Updates	WhatsApp \| Telegram

Table of Contents

Introduction of Karnataka Vrutti Protsaha Loan Scheme: A Brief Insight

Karnataka Government had started the Self-Employment Scheme to support new businesses in which loans and subsidies on loans will be provided to eligible beneficiaries.
But in the year 2023-2024, the Government of Karnataka replaced/ stopped the Self Employment Scheme and started a new scheme named “Vrutti Protsaha Loan Scheme”.
The main aim of this scheme is to support new entrepreneurs in establishing their businesses.
Karnataka Minorities Development Corporation Limited is the implementing agency of this scheme.
Collateral-free loans will be provided to all eligible new business entrepreneurs under this scheme.
The government of Karnataka will also provide a subsidy on the loans under the Vrutti Protsaha Loan Scheme.
Beneficiaries can avail the benefit of Rs. 1,00,000/- loan for their businesses.
Out of Rs.1 lakh loan amount, a 50% subsidy on the loan amount will be provided to beneficiaries by the Karnataka Government under the Vrutti Protsaha Loan Scheme.
This means that, beneficiary will only have to pay half the amount of the loan i.e. Rs. 50,000/- the remaining loan amount of Rs. 50,000/- will be paid by the Government of Karnataka as a subsidy.
Business Loans under the Vrutti Protsaha Loan Scheme are not for all residents of Karnataka.
This scheme is for only minority category applicants, in which only minorities i.e. Muslims, Sikhs, Jains, Parsis, Buddhists and Zoroastrians are eligible.
Government will also fix the income criteria for this scheme, in which for Urban Areas the maximum annual family income limit is Rs. 1,03,000/- and for Rural Areas the maximum annual family income limit is Rs. 81,000/-.
Beneficiary Applicant’s Age should be between 18 years to 55 years.
If in the last 5 years the beneficiary applicant has already availed the benefit of any loan scheme of Karnataka Minorities Development Corporation Limited, then he/she is not eligible to apply for a business loan under the Vrutti Protsaha Loan Scheme.
However, Arivu Education Loan Scheme Beneficiaries are exempted and eligible to apply.
KMDC Online Portal is the platform in which beneficiary applicants can apply for the Vrutti Protsaha Loan Scheme of the Government of Karnataka in order to get a loan for their self-employment activity of Rs. 1 lakh.
Applications for the Vrutti Protsaha Loan Scheme can also be submitted through Mobile App of KMDC Online.
Women applicants can also apply loan for their business under “Udyogini Scheme” of the Government of Karnataka.
In case of help or assistance required regarding this scheme, the beneficiary applicant can contact the Minorities Development Corporation Limited Office.

Business Activities Eligible under the Scheme

Businesses that are eligible to get loans under the Vrutti Protsaha Loan Scheme of the Karnataka Government are as follows :-
- Agro-Based Activities such as Vegetables, Fruits, Chicken, and Fish Selling.
- Tender Coconut.
- Cane Juice.
- Soft Drink.
- Bakery.
- Laundry.
- Dry Cleaning.
- Hair Dressing Salon.
- Beauty Parlour.
- Water Wash Shop.
- Puncture Shop.
- Mechanic Shop.
- Two/ Three Wheeler Repair Shop.
- Bidari Works.
- Silk Reeling and Twisting.
- Toy Making Activities.
- Any Service Sector Business.
- Small Scale Industry.
- Any Activity of Employment Generation.

Benefits Provided to Eligible Beneficiaries

All eligible beneficiaries will get the following benefits under the Vrutti Protsaha Loan Scheme of the Karnataka Government :-
- The government will provide collateral-free business Loans for Entrepreneurship.
- The beneficiary can avail the Maximum Business Loan of Rs. 1,00,000/-.
- The government will also provide a Subsidy on loans.
- Out of Rs. 1 Lakh, 50% is the Loan Amount and 50% is the Government Subsidy.
- Means, the Beneficiary will only have to pay Rs. 50,000/- Loan Amount.
- The remaining 50,000/- will be paid by the Government of Karnataka through KMDCL.

Eligibility Conditions Required to be Fulfilled

Collateral Free Business Loan of Rs. 1,00,000/- under the Vrutti Protsaha Loan Scheme will only be provided to those applicants/ beneficiaries who fulfil the following eligibility criteria of scheme :-

Only the below-mentioned religious minority categories are eligible to apply :-
- Sikh.
- Muslim.
- Jains.
- Buddhist.
- Parsis.
- Zoroastrians.
Minority Category Beneficiary should be Karnataka Permanent Resident.
Beneficiary Applicant’s Age should be between 18 years to 55 years.
The Annual Family Income of Beneficiary Applicant should be :-
- Urban Areas :- Rs. 1,03,000/- per Year.
- Rural Areas :- Rs. 81,000/- per Year
Beneficiary Applicant shouldn’t be any Central or State Government Employee.
If any loan is taken from KMDCL (except Arivu Education Loan Scheme) in the last five years, then the beneficiary applicant is not eligible to apply for a business loan.

Documents Required to be Attached

Documents that are required to be uploaded on the KMDC Online Portal at the time of applying for a collateral-free loan under the Vrutti Protsaha Scheme are as follows :-
- Project/ Business Report.
- Minority/ Caste Certificate from the Competent Authority.
- Certificate of Income.
- Beneficiary Aadhaar Card.
- Bank Account Number with IFSC Code.
- Surety Self Declaration Form.
- Beneficiary Self Declaration Form.
- Colour Passport Size Photo.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

Beneficiary Applicant can apply for a collateral-free business loan under the Vrutti Protsaha Loan Scheme of the Karnataka Government through the Online Application Form.
Online Applications under the Vrutti Protsaha Loan Scheme can be submitted through Karnataka Minorities Development Corporation Limited Online Portal known as KMDC Online.
Visit the KMDC Online Website and Choose the Vrutti Protsaha Loan Scheme or Click on Apply Online.
Applicant has to enter his/ her Mobile Number and click on Submit.
Aadhaar Card Number will be asked by the Portal which will be authenticated through OTP.
Select the Vrutti Protsaha Loan Scheme after Aadhaar authentication.
Fill the Online Application Form of Vrutti Protsaha Loan Scheme which will come after verification.
Beneficiary Applicant has to upload the required documents.
Uploading the Project Report of the Business is also mandatorily required.
Preview the Application Form thoroughly, and cross-check the list of uploaded documents.
Now, click on the submit button to submit the application form.
Registration ID of Vrutti Protsaha Loan Scheme will be generated by the KMDCL Online Portal.
Concerned Officials of Karnataka Minorities Development Corporation Limited (KMDCL) will verify the received application form and documents.
The list of Selected Beneficiaries will then be forwarded to banking for approval of the loan.
Loan Amount of Rs. 1,00,000/- under Vrutti Protsaha Loan Scheme will be transferred to the bank account of the beneficiary after final approval.
50% amount of the loan amount will be paid by the applicant and the remaining 50% loan amount will be paid by the Karnataka Government.
Vrutti Protsaha Loan Scheme Application Status can also be checked with the help of Mobile Number/ Registration ID, Mobile Number and Date of Birth.
Application for business loans under the Vrutti Protsaha Loan Scheme will be opened at a specific time period which can be regularly checked on the KMDCL Online Portal.

Important Application Forms Available

Important Links Available

Contact Details in Case of Help Needed

Contact Number of Karnataka Minorities Development Corporation Limited :-
- 080 22860999.
- 080 22861226.
Whatsapp Helpline Number Karnataka of Minorities Development Corporation Limited :- 8277799990.
Contact Email of Karnataka Minorities Development Corporation Limited :-
- info.kmdc@karnataka.gov.in.
- kmdc.ho.info@gmail.com.
- mwdhelpline@karnataka.gov.in.
Address of Karnataka Minorities Development Corporation Limited :-
No. 39-821, Subedhar Chatra Road,
Sheshadripuram, Bengaluru – 560001.

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