Odisha Government and CGTMSE Ink MoU For Successful Implementation of ‘SWAYAM’ scheme

Bhubaneswar : The Odisha government and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), have signed a Memorandum of Understanding (MoU), today, for the successful implementation of the newly launched scheme- ‘SWAYAM’, aimed at promoting entrepreneur skills among the youth and empowering them to become ‘Swatantra Yuva Udyami’.
This event was chaired by Chief Secretary, Sri Pradeep Kumar Jena, held at the conference hall of the Rural Development Department, Lok Seva Bhawan, Bhubaneswar. Among other dignitaries, Development Commissioner & Additional Chief Secretary, Additional Chief Secretary, H&UD, Principal Secretary, PR&DW, Principal Secretary, Finance remained present during the signing of the MoU.
The Chief Executive Officer of CGTMSE Sri Sandeep Verma signed the agreement documents with Dr. Prangyasmita Sahu, the Director, Institutional Finance, Department of Finance, represented the State government, Odisha for signing the MoU.
As per the MoU, while CGTMSE will provide guarantee up to 85 % of the loan amount, the State government will guarantee the remaining 15 % of the loan amount availed under ‘SWAYAM’ scheme.
Moreover, as per the norms on share of guarantee coverage, the State government, on behalf of the beneficiaries, will bear the annual guarantee fee charged by the CGTMSE.
The Principal Secretary of PR&DW Department briefed the officials of all banks of the State about the newly launched scheme. Besides, the bank officials were also informed that the State government will bear the interest burden accrued from the loan amount under this scheme.
It is worthwhile to mention here that, under ‘SWAYAM’ scheme, youth in the age group of 18-35 years will be provided interest-free bank loan for project cost 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 the loan under the scheme, the borrower will neither have to pay any processing fee nor any collateral is needed by the bank. The repayment period for the loan will be 4 years which includes moratorium period varying from 3 to 6 months as per the rules of the bank.