Odisha Govt Inks MoU with CGTMSE for Successful Implementation of ‘SWAYAM’ Scheme

Bhubaneswar: The Odisha Government has inked an MoU with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for the successful implementation of ‘SWAYAM’, a newly launched scheme that aims to promote entrepreneur skills among the youth.

 Chief Secretary Pradeep Kumar Jena presided over the programme. Development Commissioner and Additional Chief Secretary Anu Garg, Additional Chief Secretary of Department of Housing & Urban Development G Mathi Vathanan, Principal Secretary of Panchayati Raj and Drinking Water Department Sushil Kumar Lohani, Principal Secretary of Finance Department Vishal Kumar Dev and senior officials of different departments and authorities of various banks were present.

 The Chief Executive Officer of CGTMSE Sandeep Verma signed the agreement with Dr. Prangyasmita Sahu, the Director, Institutional Finance, Department of Finance, represented the State government,.

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.

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 is any collateral 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.