What you get
- The applicant receives a 40% front-ended capital investment subsidy to eligible beneficiaries for setting up small and medium enterprises. | - The applicant can avail of a loan ranging from ₹10,00,000/- up to ₹50,00,000/- for the project cost, excluding the cost of land and building. | - The applicant (specifically women entrepreneurs) is eligible for an additional 5% interest subsidy annually, provided the entrepreneur does not become a Non-Performing Asset (NPA). | - The applicant is required to contribute at least 30% of the project cost as their own contribution. | - The applicant receives a loan component amounting to 30% of the project cost.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is the genesis of DDUSY?
The Government of Arunachal Pradesh launched this startup loan scheme to provide financial assistance via subsidies on loans. It was announced in the State Budget in March 2017 to promote entrepreneurship among unemployed youth through formal banking channels, utilizing the network of scheduled commercial banks across the State.
What is the objective of the scheme?
The scheme encourages unemployed youth to access low-cost capital for entrepreneurial ventures. It offers 40% front-ended subsidy on project costs from ₹10 L to ₹50 L. Women entrepreneurs get an additional 5% annual interest subsidy, provided the loan doesn’t become a Non-Performing Entity (NPE). Sectors supported include: | - Food processing (agriculture/allied) | - Eco-tourism (homestays, tour operations) | - Traditional textile weaving | - Small manufacturing/bamboo processing/service/diagnostic units | - Other innovative business ideas
Who is eligible?
Unemployed APST (Arunachal Pradesh Scheduled Tribes) entrepreneurs planning to set up new business enterprises are eligible for loans and subsidies.
Which institution provides loans?
Any branch of a Scheduled Commercial Bank in Arunachal Pradesh can provide the loan. The loan typically covers 30–50% of project cost (excluding land and building). Entrepreneurs must contribute 10–30% as their own margin; preference is given to higher contributions.
What is the interest rate?
Rates vary by bank. For State Bank of India (SBI), it’s approximately 3.25–3.50% above EBLR (about 7.55% currently).
What government support is available?
Government support includes a 40% front-ended capital investment subsidy under DDUSY. Women entrepreneurs also receive a 5% interest subvention annually, contingent on the account not turning NPE.
What is front-ended capital subsidy?
This means the subsidy amount is credited upfront to the loan account soon after loan sanction, helping early-stage cashflow.
What is the 5% interest subvention for women beneficiaries?
If the bank charges 12% interest, a woman entrepreneur would effectively pay 7% after the 5% subvention, in addition to the capital subsidy.
What is margin money/own contribution?
Applicants must contribute 10–30% of total project cost as their margin. Preference is given to those who contribute more.
How to apply?
Applicants must apply via the DDUSY online web portal and prepare a Concept Note/Detailed Project Report (DPR) for the enterprise they wish to establish, then submit it through the portal or the Deputy Commissioner’s Office.
How are applications processed?
- Scrutiny by District Planning Officer (DPO); CIBIL check by District Lead Bank Manager. | - District Level Screening Committee (DLSC) meeting chaired by the Deputy Commissioner. | - Eligible applicants present before DLSC; suitable projects are field-verified. | - DLSC recommends projects to banks; banks evaluate and sanction viable loans.
What other schemes exist for projects up to ₹10 L?
Banks can sanction loans below ₹10 L under the Mudra Scheme; visit www.mudra.org.in for details.
What security is required?
Loans are covered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), so collateral is not insisted upon. If the borrower doesn’t want to bear the guarantee fee, collateral per bank norms is needed.
What is the repayment tenure?
Repayment depends on the activity and useful life of assets, not exceeding 7 years, including a moratorium of up to 6 months. Annual reviews are done.
How to get handholding support?
The Arunachal Pradesh Innovation and Investment Park (APIIP) in Itanagar provides resources and expertise for startups and new ventures under DDUSY.
Is plantation activity eligible?
No. Only value-addition activities under agri-horti and allied sectors are eligible.
How will banks claim the subsidy?
Banks scrutinise and sanction loans per their norms, then submit subsidy claims to the Planning & Investment Division with relevant loan details.
Will government agencies prepare DPRs?
Applicants must prepare their own DPRs, but they can seek assistance from APIIP or district officials if needed.