Bhubaneswar: The Odisha government and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) marked a significant collaboration today with the signing of a Memorandum of Understanding (MoU) to facilitate the effective implementation of the newly launched ‘SWAYAM’ scheme. The initiative aims to foster entrepreneurial skills among the youth, empowering them to emerge as ‘Swatantra Yuva Udyami.’
The signing ceremony, chaired by Chief Secretary Pradeep Kumar Jena, took place at the conference hall of the Rural Development Department, Lok Seva Bhawan, Bhubaneswar. Key dignitaries present included Development Commissioner & Additional Chief Secretary, Additional Chief Secretary, H&UD, Principal Secretary, PR&DW, and Principal Secretary, Finance.
The MoU was officially signed by the Chief Executive Officer of CGTMSE, Sandeep Verma, and Dr. Prangyasmita Sahu, Director, Institutional Finance, Department of Finance, representing the Odisha state government.
Under the terms of the MoU, CGTMSE will extend a guarantee covering up to 85% of the loan amount, while the state government will ensure the remaining 15%. Furthermore, the State government, on behalf of the beneficiaries, will bear the annual guarantee fee levied by CGTMSE as per the prescribed share of guarantee coverage.
During the signing event, the Principal Secretary of PR&DW Department briefed officials from all banks in the state about the SWAYAM scheme. Notably, the State government will also bear the interest burden accrued from the loan amount sanctioned under this initiative.
The ‘SWAYAM’ scheme targets youth aged 18-35, offering interest-free bank loans for project costs up to Rs 1 lakh, facilitating the establishment of new businesses or the expansion of existing ones. Applicants from SC/ST/PwD/Urban Transgender categories have an upper age limit of 40 years. Crucially, the scheme eliminates processing fees, and no collateral is required by the bank. The loan’s repayment period spans 4 years, including a moratorium period ranging from 3 to 6 months, as per the bank’s regulations.
This collaborative effort between the Odisha government and CGTMSE reflects a commitment to nurturing entrepreneurship and supporting the aspirations of the state’s youth, fostering economic growth and development.