Odisha’s state cabinet recently approved the SWAYAM Yojana (Swatantra Yuba Udyami), a scheme designed to engage the youth of both urban and rural areas in the state’s economic and commercial growth. This initiative aims to make self-employment more accessible, particularly for the youth, through interest-free loans.
The objective of the Odisha SWAYAM Scheme
The primary goal of the Odisha Swatantra Yuba Udyami Yojana is to provide interest-free loans to establish micro businesses that align with the skills, training, and local circumstances of eligible youth aged 18 to 35. The state government aims to include one lakh eligible youth in the first phase of this program, fostering entrepreneurship and self-reliance.
Benefits of the Odisha SWAYAM Scheme
The Odisha Swatantra Yuba Udyami Yojana offers several benefits to eligible individuals:
- Eligibility: Young men and women aged 18 to 35 who are unemployed or underemployed can apply.
- Loan Amount: Interest-free bank loans of up to Rs. 1 lakh will be provided to launch a business.
- Government Budget: The state government allocates Rs. 448 crore from its budget for this scheme.
- Loan Guarantee: The state government provides an additional 15% loan guarantee through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), in addition to the existing 85% loan guarantee for micro and small firms.
- Interest Burden: The full interest burden on the loan will be borne by the state government.
- Annual Guarantee Cost: The state government covers the annual CGTMSE guarantee cost.
Eligibility Criteria for the Odisha SWAYAM Scheme
To qualify for the Odisha SWAYAM Scheme, applicants must meet the following criteria:
- Age between 18 and 35 years (40 years for Scheduled Tribes and disabled groups).
- Annual household income below Rs. 2 lakhs or eligibility for coverage under the Kalia or BSKY schemes.
- No history of missed payments on previous loans from banks or financial institutions.
- Not owing money under any Central or State Government program.
- Not a worker of the central, state, or local governments, or an employee of constitutional bodies.
Process Fee and Repayment
There is no collateral required, and borrowers are not charged a processing fee. The primary loan can be repaid by the applicant over four years.
Required Documents
Applicants need the following documents for the Odisha SWAYAM Scheme:
- Aadhar card
- PAN card
- Passport size photograph
- Mobile number
- Bank account details
- Domicile certificate
Application Process
Though the official website for the SWAYAM Scheme has not been announced, the application process generally involves the following steps:
- Visit the official website of Swatantra Yuba Udyami Yojana once launched.
- Click on the “Register Here to Apply” option.
- Fill out the application form with details like name, age, address, etc.
- Upload relevant documents.
- Verify the provided information.
- Click on the “Register” option.
- After successful registration, proceed to apply for the scheme.
Conclusion
The SWAYAM Scheme in Odisha emerges as a promising opportunity for the youth to venture into self-employment. By providing interest-free loans and additional guarantees, the state government aims to empower young individuals to establish micro businesses tailored to their skills and aspirations. This initiative not only supports economic growth but also nurtures a culture of entrepreneurship and self-reliance among the youth.
