Skilled Youth Start-Up Scheme – Sikkim Government | Self-Employment Loan Scheme with 50% Subsidy
The “Skilled Youth Start-Up Scheme”, launched by the Government of Sikkim, is a flagship initiative by the Department of Commerce and Industries designed to tackle unemployment and promote entrepreneurship among the state’s educated youth. The scheme provides financial assistance with up to 50% subsidy to help unemployed individuals establish manufacturing, service, business, cooperative, agriculture, or allied enterprises in both rural and urban areas.
This program aims to create sustainable self-employment opportunities, encourage local innovation, and support inclusive economic growth in Sikkim.
🎯 Objectives of the Scheme
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To encourage entrepreneurship among unemployed youth in both rural and urban areas of Sikkim.
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To support bankable, profit-oriented business ventures across multiple sectors such as agriculture, horticulture, food processing, animal husbandry, handicrafts, retail, tourism, IT services, and manufacturing.
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To offer financial support through bank loans with a back-ended subsidy of 50% for BPL beneficiaries and 35% for others, depending on the category and project cost.
💰 Key Benefits
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Bank Loan with Subsidy: 35%–50% back-ended government subsidy.
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Maximum Project Cost: Up to ₹20 lakhs depending on project category.
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Mandatory Entrepreneur Development Training: 3-day training prior to loan disbursement.
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Priority for Persons with Disabilities (PwDs): Eligible for a 50% subsidy.
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Wide Sector Coverage: From agriculture to tourism, IT, handicrafts, and more.
🏭 Sectors and Maximum Project Costs
| Category | Maximum Project Cost (₹) |
|---|---|
| Dairy, Poultry, Piggery | 5–3–5 Lakhs |
| Organic Farming (Greenhouse) | 3 Lakhs |
| Food Processing & Manufacturing | 10 Lakhs |
| Wood Handicraft & Cottage Industry | 10 Lakhs |
| Metal Fabrication Works | 10 Lakhs |
| Tourism (Paragliding, Cycling, etc.) | 10 Lakhs |
| Rural Homestays | 15 Lakhs |
| IT & IT Enabled Services | 10 Lakhs |
| Cutting & Tailoring (Cooperatives) | 20 Lakhs |
| Bakery & Restaurants | 15 Lakhs |
| Retail Shops / Beauty Parlours / Boutiques | 10 Lakhs |
| Coaching or Training Centres | 5 Lakhs |
| Herbal Products / Nurseries | 10 Lakhs |
| Paper Bags / Plates Units | 10 Lakhs |
| Bamboo & Cane Industry | 10 Lakhs |
| Automobile Workshop / Car Spa | 10 Lakhs |
| Diagnostic Centres | 20 Lakhs |
| Film Industry / Mini Auditoriums | 20 Lakhs |
| Other Viable Projects | As approved by the Committee |
✅ Eligibility Criteria
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Must possess a Certificate of Identification (COI), Sikkim Subject Certificate, or Residential Certificate.
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Must be unemployed and have completed at least Class V.
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Age limit: 18 to 45 years.
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Should contribute 5%–15% of the project cost as per bank norms.
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Family income: Not exceeding ₹8 lakhs per annum.
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One applicant per family eligible.
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Children of Group C or D government employees are eligible.
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Must not have availed benefits under CMSS or PMEGP previously.
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Must not be a bank defaulter.
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Must possess a valid trade license for the business.
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PwD applicants receive priority and higher subsidy (50%).
🚫 Exclusions
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Beneficiaries of CMSS or PMEGP schemes.
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Bank defaulters.
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Children of government employees (except Group C/D).
📝 Application Process (Offline)
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Collect the prescribed application form (Annexure-I).
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Submit it along with a Detailed Project Report (DPR) and required documents to:
General Manager, District Industries Centre (DIC), Gangtok or Jorethang. -
Applications are screened by a Selection Committee including bank and departmental officials.
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Upon approval, projects are forwarded to banks for loan sanction.
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Entrepreneurship training (3 days) is mandatory before loan disbursement.
💵 Loan Repayment Rules
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The loan must be repaid with interest as per bank norms.
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Early closure is permitted:
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After 1 year for agriculture & allied projects.
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After 3 years for other sectors.
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Loan pre-closure requires approval from the Commerce & Industries Department.
⚠️ Important Note
Projects with inflated costs to claim higher subsidies will be rejected by the Selection Committee.
📑 Documents Required
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Two passport-size photographs.
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COI/Sikkim Subject/Residential Certificate.
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Educational certificates & mark sheets.
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Birth certificate or Panchayat certificate.
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Verified Project Report (2 copies).
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Voter ID (address proof).
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Unemployment card from respective BAC.
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Land lease agreement / Land Parcha, if applicable.
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Valid trade license (at loan sanction).
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BPL Certificate from DESME.
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Income certificate from BDO/SDM.
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NOC from SIDICO/SABCO.
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Skilled Youth Start-Up Scheme Sikkim – 50% Subsidy for Self-Employment Projects
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Apply for Sikkim’s Skilled Youth Start-Up Scheme and get up to 50% subsidy on business loans. Check eligibility, benefits, sectors covered, application process, and required documents for the state’s flagship self-employment program.