Bhubaneswar: The Odisha State Cabinet on Monday has announced to implement a new scheme SWAYAM to create self-employed youth i.e., Swatantra Yuva Udyami. Under this scheme unemployed youths of the state will get interest free easy loan to start their business. “All rural unemployed youth or those with no outstanding loan for the same purpose from any Central/the State Government supported schemes in the age group of 18-35 years (18-40 years for special category) desirous of starting a new business or to expand their existing business will be provided interest free bank loan for project cost upto Rs. 1 Lakh,” Chief Secretary Pradeep Jena said.
He said the applicants must fulfill the following eligibility criteria: any individual within the age group of 18-35 years. For applicants belonging to SC/ST/PwD categories, the upper age limit will be 40 years. The applicant’s family is covered under KALIA / BSKY Scheme or having income of less than 2 lakh per annum where “Family” implies self and spouse. The applicant must have a UDYAM registered / UDYAM assisted number.
The State Government has decided to cover 1 lakh eligible rural youth under this scheme initially and will spend Rs. 448 Crore out of its own budget. The scheme will be operational for a period of 2 years, he informed. There will be no collateral and processing fee for this loan. The repayment period will be 4 years which includes a moratorium period varying from 3 to 6 months as prescribed by the concerned bank / financial institution.
Similar scheme has been announced for urban unemployed youths–SWAYAM (U). Under the scheme, Rs.1 lakh interest free loan will be provided to unemployed/underemployed urban youth of the state, within the age group of 18-35 years (up to 40 years for special category such as SC, ST, PWD& Transgender) for setting up gainful self-employment ventures / micro-enterprises, suited to their skills, training, aptitude and local conditions through easy access of credit through banks with interest subsidy.
The loan amount will be covered under CGTMSE guarantee to the extent of 85% and 15% will be guaranteed by the State. Further, the burden of annual guarantee fee towards coverage under CGTMSE will be borne by the State.
A budget provision of Rs. 224 Crore will be made towards interest subvention and guarantee fee for implementing the scheme.