Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units — Frequently Asked Questions

At the maximum, the package comes to ₹9.5 lakh. A project costing up to ₹10 lakh is admissible, and the Coir Board pays a subsidy equal to 40% of the eligible project cost — that is ₹4 lakh at the ceiling. The bank adds a term loan covering 55% of the project cost, which is ₹5.5 lakh at the top end, and the applicant's own share is 5%.

The admissible project cost is up to ₹10,00,000. On top of that, one cycle of working capital is allowed, but it cannot exceed 25% of the project cost. Working capital is deliberately left out of the subsidy calculation, so the 40% subsidy applies only to the eligible project cost.

You contribute 5% of the total project cost. This amount is deposited only after the bank approves the proposal, and it has to be paid within 30 days of that approval.

Any Indian citizen aged 18 or above can apply, and there is no income ceiling. The scheme also accepts companies, Self-Help Groups, NGOs, institutions registered under the Societies Registration Act, production co-operative societies, Joint Liability Groups and charitable trusts. The project itself must be for coir fibre, coir yarn or coir product manufacturing. Extra attention is given to SC/ST applicants, women, youth and those from the North Eastern Region.

No. Applications are accepted on a rolling basis, so there is no fixed deadline to meet. You can approach the nearest Field Office of the Coir Board at any time during the year.

No equity is taken. The two components are a 40% subsidy from the Coir Board, which is a grant, and a 55% bank term loan that you repay over time. Neither involves giving away any ownership stake in your venture.

Yes. Every applicant has to complete a 5-day Entrepreneurship Development Programme. It can be done either before or after you submit the application, but it must be finished before the bank recommendation stage.

No. Applicants who have already availed a subsidy from the Government of India or a State Government for the same purpose under another scheme are not eligible.

No. Only one person per family is eligible, meaning either the applicant or the spouse can apply — not both.

Fill in the prescribed application form, which appears as Part-B of the scheme's operational guidelines, attach the required documents and submit it to the nearest Field Office of the Coir Board. The Field Office scrutinises it, and eligible proposals go to the Regional Level Selection Committee. If approved, the case is forwarded to a bank for credit linkage. Once the bank sanctions it, you deposit your 5% contribution within 30 days, the Coir Board places the 40% subsidy with the bank, and the bank disburses the term loan within 30 days of receiving the subsidy. The project must be completed within 6 months, and a joint physical verification by the Coir Board and the bank precedes the final subsidy adjustment. The guidelines are available at http://coirboard.gov.in/wp-content/uploads/2015/06/OperationalGuidelines_CUY.pdf

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units, though having it can strengthen your application and unlock other benefits.

Coir Udyami Yojana — 40% Subsidy & Up to ₹9.5L for Coir Units is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.