Credit scheme for cooperative start-ups
GS 3: Indian Economy | Planning, mobilization of resources, growth, development and employment
Why in News?
- Union Minister of Agriculture and Farmers’ Welfare Radha Mohan Singh launched YuvaSahakar-Cooperative Enterprise Support and Innovation Scheme of National Cooperative Development Corporation (NCDC).
- It is a youth-friendly scheme aimed at attracting youth to cooperative business ventures.
YuvaSahakar-Cooperative Enterprise Support and Innovation Scheme:
- The scheme is linked to Rs 1000 crore ‘Cooperative Start-up and Innovation Fund (CSIF)’ created by the NCDC.
- It aims to encourage cooperatives to venture into new and innovative areas.
- It envisages 2% less than applicable rate of interest on term loan for the project cost up to Rs 3 crore including 2 years moratorium on payment of principal.
- All types of cooperatives in operation for at least one year are eligible to avail the scheme.
- Under this scheme, more incentives will be provided for cooperatives of North Eastern region, Aspirational Districts and cooperatives with women or SC or ST members.
- The funding for the project under this scheme will be up to 80% of the project cost for these special categories against 70% for others.
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