Secretadat, Sachibalaya Marg.

Bhubaneswar-751 001
Government of Odisha Fax. 0674-2391413,
Panchayati Raj &D.W. Department E-mai- prsec.or@nic. in

2743 Dated: /20&y_0y

(PT1-PR-RH-SCHEME-0002-2024)
Guidelines for Interest Free Credit Guarantee Self Employment Scheme for Rural
Youth namely "SWAYAM".
1. Short Tittle

This scheme is meant for self-employed youth i.e. SWATANTRA YUVA UDYAMI,
hence it is named as "SWAYAM".

2. Objective

The scheme focuses on financial assistance to youth in the age group of 18-35 years
for setting up gainful self-employment ventures/micro-enterprises, suited to their
skills, training, aptitude and local conditions through easy access of credit through
bankswith interest subsidy. The underemployed or unemployed poor is encouraged
to set up smallenterprises relating to manufacturing, servicing and petty business
for which there is considerable local demand.

3. Key Feature

Allrural unemployed youth or those with no outstanding loan for the same purpose
from any Central/ State Government supportedschemes in the age group of 18-35
years (18-40 years for special category)desirous of starting a new business or to
expand their existing business will be provided interest free bank loan for project
cost upto Rs. 1 Lakh.

4. Commencement and Duration

The scheme will be in operation for 2 years from the date of notification by State
Government which may be extended further as per the decision of the Government.

5.Target of Coverage

One Lakh youth will be covered in 2 years which may be extended as per the
decision of Government. PR& DW Department will allocate district-wise target
which SLBCwill allocate amongst eligible banks of the District.

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6. Eligibility

All the applicants meeting the criteria mentioned below will be eligible for taking
benefit under this scheme.
6.1 Any individual within the age group of 18-35 years. For applicants
belonging to SC/ ST/ PwD categories, the upper age limit will be 40 years.
6.2 Applicant's family is covered under KALIA/BSKY Scheme or having income
of less than Rs. 2 lakh per annum.
6.3
The applicant must have UDYAM registered /UDYAMassisted number
7. Exclusion Criteria
An applicant covered under any of the parameters listed below will be excluded from
availing benefit of the scheme :
7.1 Defaulter in any bank/Financial Institution or having outstanding loan for
thesame purpose from any Central /State Government Schemes.
7.2 Regular employees of Central/State Government/ PSUs / Statutory bodies
and their families.
7.3 If one member in the family is covered under this scheme.

8. Definition of Family

For the purpose of this scheme "Family" implies self and Spouse.

9. Applicability of the Scheme

9.1 Any income generating project in manufacturing / service/ trading /
business.

9.2 Applicants desirous of setting up new enterprise or expanding existing

enterprise can apply.

10. Project Cost

The project cost willbe Rs. 1Lakh with 5% margin money to be paid by the borower.
Thus, the loan amount of Rs. 95,000/- will be interest free through interest
subvention.

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11. Eligible Lending
Institutions
AllPublic Sector Banks,
private scheduled commercial banks,
Co-operative banks covered under Regional Rural
Credit Guarantee Fund Trust for Micro Banks,
Enterprises (CGTMSE) will be eligible to participate in this and Small
scheme.
12. Rate of Interest and
Repayment Schedule
The loan will be
disbursed in maximum 2 instalments. Normal
applicable for similar Central / State rate of interest
bank. The repayment period will be 4 Government Schemes shall be charged by the
years which includes
varying from 3 to 6 months as moratorium period
institution. prescribed by the concerned bank /
financial

13. Guaranteed
Coverage under this Scheme
The scheme shall have
provision of credit
amount in collaboration with Credit guarantee coverage upto 100 %of the loan
Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE). State Government will provide
amount over and above 85% guarantee cOvered guarantee upto 15% of Loan
under CGTMSE.

14. Annual Guarantee Fee charged by

CGTMSE
CGTMSE will charge annual guarantee fee as per
norms on its share of guarantee
cOverage. The State Government will bear the said cost on behalf of
the borrowers.

15. Interest Subvention

State Government will bear the interest accrued from

the principal and thus for the
borrower the rate of interest on the lo¡n will be zero. State
Government will release
Interest subventionon quarterly basis tothe borrower'saccount which willbe
in advance with a nodal bank. The placed
detailed modalities for disbursement of interest
subsidy amount among participating banks will be communicated
separately by
PR&DW Department.

16. Processing Fees

There will be no processing fees and service charges by the bank

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17. Insurance Coverage

There willbe comprehensive insurance coverage on all types of risks including

floods
and earthquakes for 110%of the value of the stocks declared by bank. The
borrower
will bear the insurance charges.

18, Collateral

No collateral is required for sanction of the loan by the bank. Only the assets
created
are hypothecated / mortgaged /pledged to banks for advancing loans.

19. Mode of Implementation

19.1 There wilI be a dedicated website for registration and
submission of
applications.
19.2 The services of Mo-Seva Kendra can also be utilized by the applicant for
submission of the application.
19.3 The beneficiaries will select bank during filing application.
19.4 The concerned Bank, on receipt of application, will carry out the required
due diligence (desk and field verification) after which will sanction eligible
applications.
19.5 During field verification bank will assist the applicant in preparing required
simplified DPR for sanctioning loan.
19.6 The banks will disburse the loan amount to the applicant after sanction and
deposit of State Guarantee and margin money.
19.7 The beneficiary will deposit the EMI with the concerned bank regularly after
the moratorium period. However, the bank will charge interest during such
moratorium as well. Even though the interest is chargeable from the date of
1" disbursal,the beneficiary willrepay only after the moratorium period.
19.8 The beneficiaries are at the liberty to repay the loan amount earlier than the
scheduled period. They can also opt for paying higher EMIs.The banksshall
charge no penalty for such modification in the repayment schedule for the
fore-closure of the loan.

20. Administrative Cost

The Administrative Cost willbe met out of 3% of the Programme Funds for utilization
in arranging awareness camps, State/District/Block level monitoring meetings,
Workshops, Exhibitions, Bankers meeting, IEC Activities, Entrepreneurship
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Development Programme (EDP) training, Evaluation & Impact Assessment study,
Creation and Up-gradation of IT infrastructure, Awards, Call
Centre facility etc.
21. Entrepreneurship
Development Programme (EDP)
BDOwill organize EDP in
orient and
collaboration with the banks and concerned Departments to
make aware the entrepreneurs and the beneficiaries whose loans have
already been sanctioned to sensitize them on
functions like finance, production, marketing, various managerlal and operational
enterprise management, banking
formalities, book-keeping, statutory compliances etc. to run their business effectively.
EDP training will be either in online or
offline mode.
22. Grievance Redressal

The applicants can put forth their grievances through Jana

Sunani Portal / dedicated
call centre or before concerned
Panchayat/Block/District/State
grievances will be immediately acted upon by the concerned authority.authority. The
23. Audit
The expenditure under this scheme will be audited every year through a Chartered
Accountant selected by the PR & DW Department. This scheme fund will be open to
audit by the internal audit wing of the PR & DW Department.
24. 5T Charter/ Mo-Sarkar
The scheme has been formulated under the board charter of 5 T's of
the
Government. Further, this scheme will also be covered under "Mo-Sarkar" platform
for effective implementation.

25. Monitoring
25.1. Block Level

Block Level Committee consisting of following members will be setup ineach block to
monitor the implementation of the scheme concerning to the Block.
Block Development Officer -Chairman
All Bank Branch Managers - Member
of the Block
iii Industries Promotion Officer - Member
iv. Two members nominated by BDO - Member
V Progress Assistant/ GPEO - Member Convenor

The meeting of the Committee will be held on monthly basis.

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25.2 District Level

District Level Committee consisting of following members will be setup in each

District and will hold meeting on monthly basis to monitor the implementation of
the scheme concerning to the District.

i. Collector Chairman
ii. LDM - Member
ii. AGM, NABARD Member
iv. GM, DIC - Member
V. DPM, QLM Member
vi. Any twomembers nominated - Member
by Collector
vi. CDO-cum-EO, ZP Member
Convenor
25.3 State Level

State Level Committee consisting of following members will be setup to monitor

the implementation of the scheme and willhold meeting on quarterly basis.
Chief Secretary Chairman
ii Principal Secretary, PR&DW Dept. Member
ii. Principal Secretary, Finance Dept. Member
iv Principal Secretary, MSME Dept. Member
V. Principal Secretary, SkillDevelopment Member
& Technical Education
vi. Commissioner-cum-Secretary, Member
Dept. of Mission Shakti
vii. CGM, NABARD Member
vii. Convenor, SLBC Member
ix. Director,Special Projects Member
Convenor
26. Miscellaneous

26.1 Panchayati Raj & Drinking Water Department / SLBC will be responsible
for clarifying doubts and to ensure that bottlenecks in the implementation
of the scheme are removed as expeditiously as possible and
communicated to all concerned as and when required.

26.2 Notwithstanding anything contained in any of the provision of this

scheme, the State Governmnt may at any time modify, vary, alter,
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 amend, or withdraw any of the provisions made herein above in the
Scheme and such modifications, variations, alterations,
amendments and
withdrawal shallbe effective from the date specified in the
in this behalf.
order so made

ORDER
Ordered that this Resolution be published in an
extraordinary issue of the
Odisha Gazette.

ByOrders of the Governor,

Principal Secretary to Government

Memo No./ PR&DW, Date:

Copy forwarded to PS to Hon'ble Chief Minister Odisha for kind
of Hon'ble Chief Minister/ PS to Hon'ble Minister, information
Panchayati Raj &Drinking Water,
Odisha for kind information of Hon'ble Minister, Panchayati Raj &
OSD to Chief Secretary, Odisha for kind information of Chief Drinking Water/l
Secretary / PS to
Development Commissioner-cum-ACS for kind information of Development
Commissioner-cum-ACS/ PPS/PS to all Principal Secretaries /Commissioner-cum
Secretaries of allDepartments/ PS to all Directors, PR &DW Department/ Director,
SIRD, Bhubaneswar/ All Officers of PR &DW Department/ A.G (A &E), Odisha/ AlI
Heads of Departments/ AllRDCs/ All Collector-cum-CEOs/ AllCDO-cum-EOs, ZP for
kind information and necessary action.

Deputy Secretary to Government

Memo No./ PR& DW, 3795 Date:

Copy forwarded to the Gazette Cell, Commerce & Transport (Commerce)

Department/ Director, Printing, Stationary and Publication, Odisha, Cuttack with
arequest to publish this resolution in the extra- ordinary issue of Odisha Gazette
and supply 100 copies to this Department for official issue.

Deputy Secretary to Government

Memo No. / PR & DW,
37Y6 Date: 15 0a 80Ay
Copy forwarded to allBDOs/ all DPOs/all Sections of PR &DW Departments/
Guard file for information and necessary action.

Deputy Secretary to Government

Memo No. / PR &DW, Date:

Copy forwarded to Conveyor, SLBC with a request to communicate the
guideline to all concerned banks.

Deputy Secretary to Government