Did you know that the coir industry employs more than 7 lakh workers across all the principal coconut-producing states in India? This labor-intensive industry is majorly export-oriented and has earned the nation a whopping Rs 2,192 crores of foreign exchange until 2019.

To further promote the coir industry’s workings, the Government of India introduced the COIR Udyami Yojana.  

What is it?

This credit-linked subsidy scheme is a mix of business loan and interest subsidy offered by the Central Government to aid entrepreneurs in setting up coir units. Project costs up to Rs. 10 lakhs and one cycle of working capital (that should not exceed 25% of the project cost) will be covered under this scheme.

Also called CUY, this Yojana launched and implemented by the Coir Board and the Ministry of MSME, meant good news to all families that derive their income from this activity.

Here’s everything you need to know about the scheme.

Features of the scheme

  • This Yojana has been launched, keeping in mind the need to establish micro-level coir units in the country.
  • The applicant needs to pay for only 5% of the project cost, initially.
  • Entrepreneurs can avail 40% of the project costs in the form of subsidy assistance from the government.
  • Grants in the form of CUY business loans with concessional interest ratesshall cover the remaining 50% of the project costs.
  • This scheme covers costs that include all kinds of purchases made towards capital establishment. 

Additional Read: How to Get a Small Business Loan from the Government

Eligibility criteria

The following individuals and organizations are deemed eligible for the scheme:

  • Citizens of India aged 18 and above
  • Companies
  • Self Help Groups
  • Non-Government Organizations
  • Institutions registered under Societies Registration Act, 1860
  • Production Co-operative Societies
  • Joint Liability Groups
  • Charitable Trusts

Please note that if you already own any other enterprise for which you have availed government subsidies under any central or state government schemes, you will not be eligible to claim assistance under this Yojana.

How to apply?

Offline applications can be collected from your nearest Coir Board office, district industry centre, Coir Project Office, Panchayati Raj Institution or the Nodal agency offices approved by the Coir board. You can find the contact details of these centres here.

Documentation required

  • Proof showing your experience in the coir industry
  • Certificate of training availed from the Coir Board
  • A proposed list of machinery along with invoices
  • Certificate of Industrial Establishment issued by the District Industries Centres (DIC)
  • A copy of the title deed of the site on which the proposed unit is to be set up/already located
  • Profile of the proposed project
  • Caste certificate (if you belong to SC/ST)
  • Copy of plan and estimate for construction of worksite duly signed by chartered engineer
  • Any other relevant documents

Additional Read: How to Submit Your Business Loan Documents like a Pro and Get Them Approved?

In conclusion

Not sure if you qualify to avail the benefits of this scheme but still want business finance at attractive business loan interest rates? Well, then turn to Tata Capital – one of India’s most reputed lending institutions!

With our flexible repayment terms, speedy processing, competitive interest rates, minimal paperwork and relaxed business loan eligibility criteria, you will indeed find a loan offer that suits your pocket. Here is what we recommend; before applying for business finance with us, log on to our website, read the eligibility requirements, use a business loan EMI calculator to accurately evaluate your potential EMIs, and apply.

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