KMDC, Karnataka invite applications for Subsidy scheme for Self-help groups of minorities

The Karnataka Minorities Development Corporation (KMDC) has launched the Subsidy Scheme for Self-Help Groups (SHGs) of Minorities 2025, inviting eligible women SHGs to apply. The objective of this scheme is to provide financial assistance in the form of back-end subsidies to promote self-employment activities, strengthen entrepreneurship, and make minority women economically self-reliant.

Key Benefits of the Scheme

Under the KMDC Subsidy Scheme for SHGs of Minorities 2025, the corporation will:

• Provide 50% subsidy on the unit cost or up to a maximum of ₹2,00,000 per SHG.
• The subsidy will be extended as a back-end subsidy on loans obtained from recognized nationalized banks, scheduled banks, or financial institutions approved by the RBI.
• The subsidy amount will be directly adjusted against the repayment of the loan taken by the SHG from the bank, reducing their repayment burden significantly.

This scheme provides a major boost to women’s SHGs by enabling them to undertake small-scale businesses, trade, or service activities with financial stability.

Eligibility Criteria

To apply for the KMDC Subsidy Scheme for SHGs of Minorities 2025, the following conditions must be fulfilled:

1. The SHG should consist of women belonging to minority communities.
2. All members must be permanent residents of Karnataka.
3. The number of women in the SHG should be between 10 to 20 members.
4. Only one member per family can be part of the SHG.
5. The annual family income of SHG members should not exceed ₹6,00,000.
6. The age of members must be between 18 to 55 years.
7. The SHG must be registered by the Deputy Registrar.
8. Members or their family members should not be employed in State or Central Government services.
9. Members or their family members should not have availed benefits under any other KMDC scheme in the past five years, except Arivu Education Loan and Foreign Education Loan Scheme.
10. SHG members should not already be sustainees of the corporation.
11. The SHG must hold regular meetings (at least once a month).
12. The group should practice fixed savings and internal lending among members.
13. Priority will be given to SHGs with a strong loan repayment record.
14. Proper maintenance of record books is mandatory.
15. The SHG must be formed for at least six months before applying for this subsidy.

Documents Required

• Two passport-size photographs of each member.
• Minority Certificate of SHG members.
• Income Certificate of SHG members.
• Aadhaar Card copy of each member.
• Project Report on proposed self-employment activity.
• Copy of Bank Passbook of the SHG.
• Group photograph of SHG members.
• Copy of Minutes of SHG meetings.
• Applicant’s Self-Declaration.

The KMDC Subsidy Scheme for Self-Help Groups of Minorities 2025 is a transformative step towards empowering minority women in Karnataka. By offering a subsidy of up to ₹2 lakh, the scheme encourages SHGs to take up income-generating activities, ensuring financial independence and social empowerment.

Through this initiative, KMDC not only supports entrepreneurship but also promotes community-driven development, where women come together to create sustainable livelihoods, for more details and apply CLICK HERE