Swayam Scheme is a Yojana By the Govt. Odisha Under the leadership Of Shri Naveen Patnaik for Interest Free Credit Guarantee Self Employment Scheme for Rural Youth namely “SWAYAM”.
Here are the Guidelines of the Scheme Swayam like Eligibility Criteria, how to apply, educational qualification, Interest rate, and many more read the full article below,
This scheme is meant for self-employed youth i.e. SWATANTRA YUVA UDYAMI, hence it is named as “SWAYAM”.
Objective Of the Scheme
The scheme focuses on financial assistance to youth in the age group of 18-35 years 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 underemployed or unemployed poor is encouraged to set up small enterprises relating to manufacturing, servicing and petty business for which there is considerable local demand.
Key Feature Of The Scheme
All rural unemployed youth or those with no outstanding loan for the same purpose from any Central/ 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.
Commencement and Duration
The scheme will be in operation for 2 years from the date of notification by State Government which may be extended further as per the decision of the Government.
Target of Coverage
One Lakh youth will be covered in 2 years which may be extended as per the decision of Government. PR& DW Department will allocate district-wise target which SLBC will allocate amongst eligible banks of the District.
Eligibility Criteria
All the applicant meeting the criteria mentioned below will be eligible for taking benefit under this scheme.
- 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.
- Applicant’s family is covered under KALIA/BSKY Scheme or having income of less than Rs. 2 lakh per annum
- The applicant must have UDYAM registration/ UDYAM assisted number
Exclusion Criteria
An applicant covered under any of the parameters listed below will be excluded from availing benefit of the scheme :-
- Defaulter in any bank / Financial Institution or having outstanding loan for the same purpose from any Central/ State Government Schemes.
- Regular employees of Central/State Government / PSUs / Statutorybodies a n d their families.
- If one member in the family is covered under this scheme. (For the purpose of this scheme “Family” implies self and Spouse.)
Applicability of the Scheme
- Any income generating project in manufacturing / service/ trading / business.
- Applicants desirous of setting up new enterprise or expanding existing enterprise can apply.
Project Cost
The project cost will be Rs. 1 Lakh with 5% margin money to be paid by the borrower.
Thus, the loan amount of Rs. 95,000/- wil be interest free through interest subvention.
Eligible Lending Institutions
Al Public Sector Banks, private scheduled commercial banks, Regional Rural Banks, Co-operative banks covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will be eligible to participate inthis scheme.
Rate of Interest and Repayment Schedule
The loan will be disbursed in maximum 2 instalments. Normal rate of interest applicable for similar Central / State Government Schemes shall be charged by the bank. The repayment period will be 4 years which includes moratorium period varying from 3 to 6 months as prescribed by the concerned bank / financial institution.
Guaranteed Coverage under this Scheme
The scheme shallhave provision of credit guarantee coverage upto 100% of the loan amount in collaboration with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). State Government will provide guarantee upto 15% of Loan amount over and above 85% guarantee covered under CGTMSE.
Annual Guarantee Fee charged by CGTMSE
CGTMSE will charge annual guarantee fee as per norms on its share of guarantee coverage. The State Government will bear the said cost on behalfof the borrowers.
Interest Subvention
State Government will bear the interest accrued from the principal and thus for the borrower the rate of interest on the loan will be zero. State Government will release Interest subvention on quarterly basis to the borrower’s account which will beplaced in advance with a nodal bank. The detailed modalities for disbursement of interest subsidy amount among participating banks will be communicated separately by PR&DW Department.
Processing Fees
There will be no processing fees and service charges by the bank
Insurance Coverage
There will be comprehensive insurance coverage on all types of risks including floods and earthquakes for 110% of the value of the stocks declared by bank. The borrower will bear the insurance charges.
Collateral
No collateral isrequired for sanction of the loan by the bank. Only the assets created are hypothecated / mortgaged /pledged to banks for advancing loans.
Mode of Implementation
- There will be a dedicated website for registration and submission of applications. Click here to apply
- The services of Mo-Seva Kendra can also be utilized by the applicant for submission of the application.
- The beneficiaries will select bank during filing application.
- The concerned Bank, on receipt of application, will carry out the required due diligence (desk and field verification) after which will sanction eligible applications.
- During field verification bank will assist the applicant in preparing required simplified DR for sanctioning loan.
- The banks will disburse the loan amount to the applicant after sanction and deposit of State Guarantee and margin money.
- The beneficiary will deposit the EMI with the concerned bank regularly after the moratorium period. However, the bank will charge interest during such moratorium as well. Even though the interest is chargeable from the date of 1st disbursal, the beneficiary wil repay only after the moratorium period.
- The beneficiaries are at the liberty to repay the loan amount earlier than the scheduled period. They can also opt for paying higher EMls. The banks shall charge no penalty for such modification in the repayment schedule for the fore-closure of the loan.
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