Swashakthi Credit Facility Scheme for granting credit facilities to encourage the youth to initiate small and medium enterprises in rural areas was recently launched under the theme “Twenty Five Thousand Ideas and Twenty Five Thousand Businesses”. This was launched in line with the Government’s national programme for creating One Million Employment Opportunities for the youth.
Under the scheme a credit facility up to a sum of Rs. 200,000/- will be extended at a concessionary interest rate of 5.5% through 17 public and private banks while a non-recovering financial grant of Rs.50, 000/- will also be given along with the loan to meet the preliminary expenses of the business. Meanwhile, a sum of Rs.250, 000/- will be extended for developing the existing businesses at the same concessional interest rates too.
This credit facility will be offered to the youth, graduates, and the youth with special skills and with special needs who possess new ideas to initiate business ventures using distinctive resources available in the rural vicinity, engage in information technology sector or producing environmental friendly products. They will also get the opportunity to receive an extra credit facility at the ordinary interest rates depending on the success of the business.