The objective of the scheme is to provide financial assistance to urban youth, in the age group of 18-35 years and up to 40 years for Special Category (SC/ST/PwD/Transgender) for setting up gainful self-employment ventures/microenterprises, suited to their skills, training, aptitude, and local conditions through easy access to credit through banks with interest subsidies. This is to encourage the underemployed or unemployed urban youth to set up small enterprises relating to manufacturing, service, and business for which there is enough local demand.
Key Features:
- All urban unemployed or underemployed youth with no outstanding loan for the same purpose from any Central/ State Government schemes in the age group of 18-35 years and up to 40 years for Special Category (SC/ST/PwD/Transgender) desirous of starting a new business or to expand their existing business will be provided interest-free bank loan for project cost up to Rs. 1 Lakh.
- The cost of the project would be Rs.1.00 Lakh with 5% margin money to be paid by the borrower. Thus, an interest-free loan amount of Rs. 95,000 will be available for the beneficiary by the bank.
- A normal rate of interest is applicable for similar Central / State Government Schemes shall be charged by the bank. However, the entire interest burden of the loan will be borne by the State Government through interest subvention.
- The scheme aims to cover over 50,000 unemployed youth of urban Odisha between the age group of 18-35 years (18-40 years for the special category).
- The loan will be disbursed in a maximum of 2 installments. There will be 4 years repayment period which includes a moratorium period varying from 3 to 6 months as prescribed by the concerned bank or financial institution.
Commencement and Duration:
The scheme will be in operation for 5 years from the date of notification by State Government which may be extended further as per the decision of the Government.
Target of Coverage:
50,000 urban youth will be covered in 2 years which may be extended as per the decision of Government. Department of housing and urban development will allocate district-wise target which SLBC will allocate amongst eligible banks of the District.
Eligibility Criteria:
The eligibility criteria for availing of the benefits of the scheme are mentioned below.
- Any individual who is within the age group of 18-35 years is eligible for the scheme. For those applicants who belong to special categories such as (SC / ST / PwD/Transgender), the upper age limit will be 40 years.
- Any Applicant’s family who is covered under the BSKY Scheme or having an income of less than Rs 3 lakh per annum where “Family” implies self and spouse.
- The applicant must have a UDYAM registered / UDYAM assisted number.
Applicability of the Scheme: Any income-generating project in manufacturing/service/trading/business. Those Applicants who desire to set up a new enterprise or expand an existing enterprise can apply.
Project Cost: The project cost will be Rs.1 Lakh of which 5% money will be paid by the borrower. Therefore the loan amount of Rs. 95,000 will be interest-free through an interest period.
Eligible Lending Institutions: Every Public Sector bank, private commercial bank, Regional Rural Bank, and Co-operative bank covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will be eligible to participate in this scheme.
How to apply for SWAYAM Yojana in Odisha?
- You can by visiting the SWAYAM scheme website.
- The first step is to register on the website by clicking the ‘Registration’ button and filling out the registration form
- After registering click on ‘Login’ and enter your Aadhaar or mobile number to log into the website.
- After logging in, fill out the application form,
- Upload the documents
- Submit them to complete the application process.
