Assam Government Loan & Support Schemes for Startups & MSMEs

Assam’s Startup Mission

Assam is taking a bold leap to become Northeast India’s innovation leader. Through Startup Assam, the state government is creating a strong ecosystem for youth-led startups and MSMEs. The mission? Promote entrepreneurship, generate 1 lakh jobs, and launch 5,000 startups by 2030. The state’s policies aim to reduce risk, ease financing, and support business growth across all districts.

The recently launched Assam Start-up & Innovation Policy 2025 (valid for five years) is the state’s newest push to improve funding, incentives, infrastructure, and compliance relaxations. This policy backs the entire startup lifecycle from ideation to scaling and is central to the state’s development agenda.

Assam’s Startup Framework

Startup Assam & MASI Recognition

• Startup Assam is the state’s umbrella initiative for startups. (startup.assam.gov.in)
• Startups must register and obtain a My Assam Startup ID (MASI) to access incentives.
• MASI acts as a startup’s gateway to grants, rent reimbursement, subsidies, and relaxations.

Key Goals of the 2025 Policy

• Promote startup culture across urban and rural Assam
• Encourage sector-specific innovation: agritech, biotech, bamboo, tourism, etc.
• Attract ₹2,000 crore investment into the startup ecosystem

The state’s main incubator, The Nest, supports founders with mentoring, workspace, and access to funding networks.

Key Government Schemes in Assam

1. Sarothi (CM’s Startup Fund)

Purpose: Launched in 2016–17 to offer credit to first-gen entrepreneurs facing funding barriers.

Benefits:

• Loan up to ₹10 lakh per startup
• 5% interest subvention (paid by the state)
• Flexible repayment terms
• Minimum 15% promoter contribution

How to Apply:

• Approach designated banks with your project proposal
• Once sanctioned, receive interest support from the government

Challenges:

• Limited fund pool (initial ₹10 crore corpus)
• Modest interest support; banks still perceive risk

2. MASI Incentives (Grants & Subsidies)

Under the Startup Assam framework, startups with MASI ID can access:

• Idea2POC Grant: ₹5 lakh to build a prototype
• Scale-Up Grant: Up to ₹50 lakh for commercialisation
• Sustenance Allowance: ₹20,000/month for 1 year

Additional incentives:

• Lease Rent Reimbursement: 50% of rent (max ₹5 lakh for 3 years)
• Digital Tools Subsidy: 50% of cost (up to ₹1 lakh)
• Power Subsidy: 50% of electricity cost (max ₹10 lakh/year)
• Patent Cost Reimbursement: ₹1 lakh (domestic), ₹5 lakh (international)
• Procurement Preference: Relaxed eligibility in govt tenders

How to Apply:

• Register on startup.assam.gov.in
• Upload documents: business plan, MASI certificate, financials
• Submit to relevant departments; grants are milestone-based

3. Assam Start-up Venture Capital Fund (ASVCF)

Managed by SIDBI, ASVCF is a state-backed fund providing early-stage equity to scalable startups. It helps startups beyond grants or loans and promotes innovation-led ventures with high growth potential.

4. Central Schemes Available to Assam Startups

Even while leveraging state schemes, Assam startups can combine benefits with:

• PMEGP – Credit-linked subsidy for micro businesses
• CGTMSE – Collateral-free loan guarantee for MSMEs
• MSME Schemes – Tech upgradation, cluster development, ZED certifications, etc.

Why These Schemes Matter

The Assam government designed these supports with five key goals:

1. Bridge Finance Gaps: Most early-stage founders can’t access formal credit. Sarothi and MASI reduce that barrier.
2. Drive Innovation: From agritech to tourism, the state wants startups solving local problems.
3. Support Inclusive Growth: Women, rural founders, and SC/ST entrepreneurs get preference.
4. Boost Employment: Startups = job creators. The state aims to create 1 lakh jobs by 2030.
5. Attract Private Investment: State support builds investor confidence and credibility.

Budget & Ecosystem Trends

• Sarothi launched with ₹10 crore corpus (may be expanded)
• Tech Acquisition Fund: ₹5 crore allocation
• Advantage Assam 2.0 (2025) signed ₹22,900 crore worth of industrial MoUs boosting ecosystem depth
• MASI grants are regularly disbursed (e.g. 24 startups in May 2025)

Recent Updates & Policy News

• Startup Assam 2025 Policy: Sets 5-year roadmap for incentives, equity, and innovation funding
• DIIS: New department formed to manage startup initiatives centrally
• Withdrawal of Clean Energy Policy (early 2025): May affect renewable-focused startups
• Tata’s Semiconductor Investment in Assam: Massive ₹27,000+ crore investment expected to transform Assam’s tech economy

How StartupFlora Helps You Win

Most founders struggle with paperwork, strategy, and compliance. That’s where we come in.

Here’s how StartupFlora supports startups in Assam:

1. Scheme Strategy – We map the right schemes (Sarothi + MASI + PMEGP, etc.) based on your business stage and sector.
2. Document Support – From financials to project plans, we help prep everything.
3. Filing & Liaison – We handle portal submissions and follow-ups with banks or nodal offices.
4. Compliance Assistance – We keep you audit- and milestone-ready.
5. Local Expertise – Our familiarity with Assam district nodal offices gives you a real edge.

Step-by-Step: Accessing Assam Startup Schemes

1. Incorporate your business in Assam
2. Apply for MASI via Startup Assam portal
3. Identify right schemes based on stage and need
4. Prepare application with StartupFlora support
5. Submit & follow up with banks or agencies
6. Track progress till loan/grant is disbursed
7. Utilize funds and maintain documentation
8. Leverage additional incentives (rent, power, IP)
9. Stay updated on new policies and guidelines

Find Your Startup Advantage

Assam’s startup ecosystem is evolving fast. With MASI incentives, Sarothi loans, and a state-supported VC fund, startups today have unprecedented support to scale.

But navigating all this takes precision, time, and experience.

StartupFlora helps you identify, apply, and win across every scheme. We work with founders from idea to execution, helping them tap into the full power of Assam government support.

👉 Thinking of applying for a grant or startup loan in Assam? Book your free strategy call with StartupFlora today.