SVAYEM Scheme
SVAYEM Scheme for Assam Youth Empowerment
The Government of Assam has introduced Swami Vivekananda Assam Youth Empowerment Yojana (SVAYEM) in the year 2017. Under the SVAYEM scheme, the Government provides financial support to the youth of Assam for taking up income-generating activities in the manufacturing, trading and service sector. The key objective of SVAYEM is to create employment opportunities for youth through setting up of new ventures and growing existing ventures. In this article, we look at the Assam SVAYEM scheme in detail.
Objectives of SVAYEM Yojana
The objective of SVAYEM – The flagship programme which provides financial support to youth in Assam is explained below:
- To create employment opportunities for youth in rural and urban areas of Assam through setting up of new ventures and growing existing ventures
- To provide financial assistance to micro and small enterprises in Assam. MSE should be engaged in the manufacturing, trading and services sector
- To enhance the income level of traditional artisans of Assam by providing financial credits
- To ensure sustainable growth of traditional artisans in the state of Assam
Activities under SVAYEM Yojana
Income-generating activities which can be supported under SVAYEM Yojana are listed below:
- Manufacturing
- Trading
- Processing
- Rural Transport Service such as Auto Rickshaw, e-Rickshaw
- Service Sector
- Tourism
- Shops, repairing Centres, Handicraft, Cottage Industries
Eligibility Criteria
Eligibility criteria to get financial assistance under this scheme are given below.
- The youth must be a Resident of Assam
- Age of the youth should be above 18 years
- To get assistance under this scheme, there will be no income for youth
- Every youth should have skill, experience and knowledge to undertake the income-generating activities
- Education qualification of the youth should be above class VII
- The applicant who has already completed Skill Development Training will be given preference
Ineligibility for SVAYEM Scheme
Below mentioned beneficiaries are not eligible to get financial support under this scheme:
- If the beneficiary is a defaulter of any loan, he is not eligible for SVAYEM
Note: If the information furnished by the beneficiary is found to be incorrect later, action would be taken against the beneficiary, including cancellation of the loan.
- Prime Minister’s Employment Generation Programme (PMEGP) beneficiaries of the last 5 years will not be eligible under the scheme
Beneficiary Selection for SVAYEM Scheme
The number of beneficiaries of SVAYEM Yojana will be selected based on the population in a district. About 1 lakh youth in Assam will be provided suitable financial support for taking up income-generating enterprises.
Financial Assistance under SVAYEM Scheme
All Public Sector, Private Sector and Regional Rural Banks provide financial assistance under this SVAYEM Scheme. The quantum loan for new entrepreneurs is Rs. 1 lakh and for existing entrepreneurs – Rs. 2 lakh.
| Category | Qualifying Amount | Government Subsidy Percentage | Beneficiary contribution | Bank Loan | Remarks |
| New entrepreneur | Rs. 1 Lakh |
20%
|
25% | 55% | Project cost maximum subject to Rs.20000 |
|
Existing entrepreneur
|
Rs. 2 Lakh | 20% |
25%
|
55%
|
Project cost maximum subject to Rs.40000 |
Example:
If an amount of Rs. 1,00,000 is sanctioned as loan for a total project cost to a new entrepreneur. Then the financial assistance will be as below:
- Beneficiary’s contribution – Rs. 25,000
- Subsidy to be disbursed – Rs. 20,000
- Loan amount from the bank – Rs. 55,000
The interest rate for Loan under SVAYAM Scheme
Interest rates for SVAYAM loans will be charged according to the bank as per RBI guidelines for Micro Small Enterprises units.
Repayment Schedule for SVAYAM Loans
The repayment schedule for the loan will be between 3 to 7 years after an initial moratorium. It will be prescribed by the corresponding bank or financial institution.
Processing Fees
There will be no processing fees for SVAYAM loan.
Documents Required
Supporting documents to apply for SVAYAM scheme are below for reference:
- SVAYAM Application Form
- Applicant should submit a project or scheme report for the proposed project (Report should contain details of technical and economic viability)
- Identity Proof (Voter’s ID card, Driving License, PAN Card, Aadhaar Card and Passport)
- Proof for Qualification of VII Standard
- Age Proof
- Experience certificate if applicable
- Skill Development Trainee certificate if applicable
- Residence Proof
- Nation food security card if applicable
- Copy of business licence
- Copy of business registration certificate
- Ownership identity documents
Application Procedure for SVAYEM Scheme
Application procedure for SVAYAM scheme is explained in a step by step process. Project proposals will be invited from applicants at District level through advertisement.
Submit Application
Step 1: The applicant should fill the application form for SVAYAM scheme.
Application Form for SVAYEM SchemeStep 2: Submit the application form along with all supporting documents to the district office.
Step 3: General Manager, DICC will scrutinize the application and forward to the District Level Committee (DLC) for approval.
Step 4: DLC will examine the application for the loan and recommend to the corresponding bank
Step 5: Bank will appraise the project both technically and economically, with the approved project cost of DICC.
Sanction of Loan
Step 6: Bank will issue sanction within 30 days according to the proposal.
Step 7: After deposit of promoter contribution by the applicant and receipt of subsidy claim, the loan will be released to the beneficiary within 5days.
Upon sanctioning of the SVAYAM loan, the bank will submit the Margin Money Subsidy proposal against the borrowers (beneficiary) to a Nodal Bank approved by the Assam Government. The Assam Finance Department will execute an MOU with the Nodal Bank for the release of the margin money amount to the Financing Bank after that the bank will update the status online MIS system of the SVAYAM scheme.