On November 14, 2018, the Agriculture Minister launched the Yuva Sahakar Scheme to empower youth. To support this, the National Cooperative Development Corporation pledged Rs.1000 crore to the Cooperative Start-up and Innovation Fund (CSIF), making it a promising opportunity for the younger generation.
Main Objective of Scheme
- The Yuva Sahakar Scheme aims to empower young individuals by encouraging them to embark on new entrepreneurial ventures and boost their businesses. Under this initiative, youths will have access to affordable loans, making it convenient for them to establish their startups.
- The scheme aims to financially support and encourage young entrepreneurs in their business ventures.
Key Features of the Scheme
- The National Cooperative Development Corporation (NCDC) has set up a special fund with flexible features to make it easier for young people to benefit from this initiative.
- The initiative will link to the ‘Cooperative Start-up and Innovation Fund (CSIF)‘ valued at Rs 1000 crore, which the NCDC has established.
- We’re providing extra incentives for cooperatives in the North Eastern region, Aspirational Districts, and those with women, SC, ST, or PwD members.
- For these special categories, the funding for projects will cover up to 80% of the costs, which is higher than the 70% offered to others.
- As part of the scheme, there will be a 2% lower than the usual interest rate on term loans for projects costing up to Rs 3 crore, with a 2-year grace period for repaying the principal amount.
- Any type of cooperative that has been in operation for at least one year is eligible to take advantage of this opportunity.
Benefits given under the scheme
- The scheme will benefit women, scheduled caste, scheduled group candidates.
- In addition, incentives will be given to cooperatives employed in Northeastern region along with the aspirational districts.
- Individual enrolling for the above-mentioned scheme can enjoy the following benefits.
- The scheme will provide fund to young entrepreneurs to achieve success in their business.
- However, the funding is secured and individual can get immediate help for their start-ups.
- Almost 80% of cooperative start-up will be covered by the financial help that youth will receive under the scheme.
- In this, individual will get 2% less interest as usually given for term loan projects.
- Scheduled castes and scheduled groups, including women, can receive 80% of the project cost.
- Other classes can get 70% for startup. Cooperatives must be operational for at least a year before applying for assistance.
All types of cooperatives are eligible to apply for benefits under this scheme, promoting inclusivity.
- The scheme covers project costs up to Rs. 3 crores, ensuring financial support within this specified limit.
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