Odisha government has signed an MoU with CGTMSE for implementation of ‘SWAYAM’scheme

Bhubaneswar22/2/24:Odisha government has signed an MoU with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for implementation of its scheme ‘SWAYAM’ which aims at promoting entrepreneur skills among the youths.

Chief Executive Officer of CGTMSE Sandeep Verma and Prangyasmita Sahu, Director, Institutional Finance, Department of Finance, signed a Memorandum of Understanding (MoU) in Bhubaneswar on Thursday. Chief Secretary Pradeep Kumar Jena; Development Commissioner; Additional Chief Secretary, H&UD; Principal Secretary, PR&DW and Principal Secretary, Finance were present.

As per the MoU, CGTMSE will provide a guaranteed up to 85% of the loan amount, while the state government will guarantee the rest 15% of the loan amount availed under ‘SWAYAM’ scheme, which was launched to promote entrepreneur skills among the youths and empower them to become ‘Swatantra Yuva Udyami’.

As per the norms on share of guarantee coverage, the government, on behalf of the beneficiaries, will bear the annual guarantee fee charged by the CGTMSE.

The Principal Secretary, PR&DW department, briefed the officials of banks in the state about the new scheme. Besides, they were informed that the government would bear the interest burden accrued from the loan under the scheme.

Under ‘SWAYAM’ scheme, youth in the age group of 18-35 years will be provided interest-free bank loans for project costs of Rs 1 lakh to start a new business or expand their existing business.

The upper age limit for the applicants belonging to SC/ST/PwD/Urban Transgender categories is 40 years. To avail of the loan under the scheme, the borrower will neither have to pay any processing fee nor collateral needed by the bank. The repayment period for the loan will be 4 years including moratorium period varying from 3 to 6 months as per the rules of the bank.