Bhubaneswar: For successful implementation of the newly launched SWAYAM scheme, which aims to promote entrepreneurial skills among the youth, the state government has signed a memorandum of understanding (MoU) with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) here Thursday. Under the SWAYAM scheme, CGTMSE will provide a guarantee for up to 85 per cent of the loan amount and the state government will guarantee the remaining 15 per cent.
Moreover, as per the norms on the share of guarantee coverage, the state government, on behalf of the beneficiaries, will bear the annual guarantee fee charged by the CGTMSE. The chief executive officer of CGTMSE Sandeep Verma signed the agreement with Prangyasmita Sahu, Director of Institutional Finance, Finance department, who represented the state government. The event was chaired by Chief Secretary Pradeep Kumar Jena, who was joined by the Development Commissioner, Additional Chief Secretary, and principal secretaries of various departments.
Principal secretary of the Panchayati Raj and Drinking Water (PR & DW) department briefed officials of all banks operating in the state about the newly launched scheme. The bank officials were also informed that the state government would bear the interest burden accrued from the loan amount. Notably, under the SWAYAM scheme, youth in the age group of 18 to 35 years will be provided interest-free bank loans for project cost of Rs 1 lakh to encourage them to start a new business or expand their existing business.
ARINDAM GANGULY, OP