MSME Aghaaz Scheme (J&K Bank)

The MSME Aghaaz Scheme is a modern financing initiative by J&K Bank, crafted to empower MSMEs in Jammu & Kashmir. The scheme targets both focus sectors, such as agriculture, handicrafts, tourism, and sunrise sectors like IT and healthcare. Designed with flexible eligibility and competitive interest rates, it provides you with robust support for launching and growing your enterprise. If you are a local or even a migrant domiciled in J&K and want to create a new business unit in the Union Territory, this is the scheme to look at. In short, it is a one-stop solution to fuel your entrepreneurship in J&K.

What is the MSME Aghaaz Scheme?

J&K Bank launched the MSME Aghaaz Scheme on 9th July 2025 under Mission Yuva. This scheme is dedicated to providing affordable finance to new MSMEs in the Union Territory’s focus and sunrise sectors, ensuring you benefit from tailored financial products and government-backed benefits.

Objectives of the MSME Aghaaz Scheme

• To power local entrepreneurship and encourage business creation in J&K.
• To support businesses in key focus and emerging sunrise sectors.
• To provide accessible and affordable credit, especially to youth and new businesses.
• To promote employment and economic growth across the UT.

Key Features of the MSME Aghaaz Scheme

• Financing is provided up to ₹125 Crore for eligible projects.
• Bank finances up to 80% of your project cost; a minimum 20% margin money is required from you.
• Interest subvention up to 6% per annum is available for 5 years, with category-wise limits.
• You can opt for either term loans or working capital, depending on your business needs.
• Repayment period (maturity) is a maximum of 66 months or 66 EMIs; moratorium up to 6 months from first disbursement.
• Interest rate for micro and small loans up to ₹15 lakh is Repo Linked Lending Rate (RLLR) + 1.5% (currently around 10.65%), above ₹15 lakh as per your internal credit rating.
• No processing fee for loan applications.
• Loans are available for agriculture, horticulture, tourism, crafts, IT, healthcare, logistics, and more.
• Collateral or third-party guarantees may be required based on the loan size and credit profile.

Financial Assistance Offered Under the Aghaaz Scheme

You can receive significant financial assistance, with detailed support as below:

• Minimum Loan Amount: ₹10 lakh
• Maximum Loan Amount: ₹125 crore
• Bank Finance: Up to 80% of your project cost
• Margin Money: At least 20% of your project cost contributed by you.

Interest Subvention Limits

Interest Subvention shall be provided for specific projects (selected MSMEs) under Focus & Sunrise Sectors of 6% p.a. for 5 years.

• Moratorium: Up to 6 months (extendable upon request)
• Repayment: Up to 66 EMIs (including moratorium)
• Working Capital: Valid for 1 year, renewable annually

Eligibility Criteria for MSME Aghaaz Scheme

Eligibility

You are eligible to apply if:

• You are between 18 and 59 years of age
• You hold domicile status in Jammu & Kashmir (including residing Kashmiri migrants)
• Your business operations will be within Jammu & Kashmir.
• You are proposing a new MSME enterprise in a focus or sunrise sector
• If you have already availed earlier government schemes, ensure that all prior loans are fully repaid at least 6 months before application.
• You or your family must not be a defaulter of any previous government-sponsored self-employment scheme.

Non-eligibility

You cannot apply if:

• You plan to set up a unit outside Jammu & Kashmir
• You are not a J&K domicile or a Kashmiri migrant as defined by the policy
• You or any family member is a defaulter in a previously availed government scheme
• Your business is connected to the manufacturing of intoxicant items (except permitted food services)
• You are applying for an extension or expansion of an existing business instead of a new unit.

Documents Required for MSME Aghaaz Scheme

• Identity proof (Aadhaar card, PAN card)
• Proof of J&K domicile
• Age proof
• Detailed business/project plan
• Previous loan clearance certificate (if applicable)
• Family member no-default certificate
• Address proof for business and residence
• Any other documents as specified by the bank branch.

How to Apply for the MSME Aghaaz Scheme

Step 1: Visit your nearest J&K Bank branch or check the scheme on the J&K Bank official website

Step 2: Collect and fill out the MSME Aghaaz Scheme application form

Step 3: Gather all documents required by the branch and submit them with your application

Step 4: The bank will verify your eligibility and project proposal

Step 5: On approval, complete formalities for margin money and security/guarantee

Step 6: Receive loan sanction and start using funds for your new MSME.

Benefits of MSME Aghaaz Scheme

• Affordable Finance
  You enjoy one of the lowest effective lending rates for MSMEs, especially with interest subvention support.
• Large Loan Limits
  Whether you have small or large project ambitions, you can access finance amounts ranging from ₹10 lakh to ₹125 crore.
• Moratorium & Flexible Repayment
  The scheme offers you a comfortable moratorium period and a long repayment window (up to 66 EMIs).
• Zero Processing Fee
  Your loan application attracts no processing or administrative charges from the bank.
• Sectoral Focus
  You receive support whether your business is in a traditional focus area like agriculture or a sunrise sector like IT or healthcare.

Real-World Examples of MSME Aghaaz Scheme

• An agriculture startup in Baramulla helps local farmers use modern techniques to increase crop productivity.
• A high-tech vegetable farm in Jammu supplies fresh, greenhouse-grown vegetables to city markets year-round.
• A carpet weaving centre in Ganderbal crafts luxurious hand-knotted silk and wool carpets, carrying forward the age-old art of Qaleen making.
• A handicrafts unit in Budgam revives traditional Kashmiri paper-mache art, providing new markets for local artisans.
• A wool handloom unit in Anantnag empowers artisans to produce high-quality, handmade woolen products.
• A sports equipment manufacturing unit in Srinagar produces cricket gear and other sporting goods for schools and clubs.
• A healthcare service startup in Pulwama offers affordable medical consultation and diagnostics to rural communities.

Related Government Support Plans with MSME Aghaaz Scheme

Final Words

MSME Aghaaz Scheme is your solution if you are a new or aspiring business owner in Jammu & Kashmir. With simple eligibility, robust financial aid, and strong sectoral focus, this scheme is made to help your business succeed and grow. Reach out to J&K Bank today and begin your MSME journey with confidence!