Why in news?
The Ministry of Cooperation recently highlighted progress under Yuva Sahakar and Swayamshakti Sahakar schemes, which provide financial support to newly formed cooperative societies and self‑help groups. The schemes aim to foster innovation in the cooperative sector and empower women and marginalised communities. State‑wise data show that dozens of cooperatives have benefitted since the schemes were launched.
Background
Yuva Sahakar – Cooperative Enterprise Support & Innovation Scheme was launched by the National Cooperative Development Corporation (NCDC) in 2019. It encourages start‑ups in the cooperative sector across agriculture, dairy, fisheries, services and manufacturing. Swayamshakti Sahakar, introduced later, offers similar support to women‑led self‑help groups and poverty alleviation cooperatives. Both schemes are fully funded by the NCDC and focus on innovative ideas, employment creation and inclusive growth.
Key provisions of Yuva Sahakar
- Eligibility: Cooperative societies must be operational for at least three months with a positive net worth and no cash losses. For societies operating longer than one year, project costs can be up to ₹3 crore; for those between three months and one year old, the limit is ₹1 crore.
- Financial support: NCDC provides term loans covering up to 80 percent of the project cost (or 70 percent for societies from developed areas), with an interest rate concession of 2 percent on timely repayment. Working capital assistance up to 20 percent of the project cost is also available. Loan tenure can extend to five years with a two‑year moratorium.
- Special incentives: Higher debt–equity ratios and additional concessions are offered for cooperatives in the North‑Eastern Region, aspirational districts and those comprising exclusively women, Scheduled Caste, Scheduled Tribe or persons with disabilities.
Swayamshakti Sahakar highlights
- Women‑focused: The scheme supports self‑help groups and cooperatives run by women, helping them access affordable credit for income‑generating activities.
- Poverty alleviation: Assistance covers agriculture, cottage industries and services in rural and semi‑urban areas. Repayment terms are similar to Yuva Sahakar but with additional hand‑holding and capacity‑building support.
- Empowerment: By promoting women’s economic participation and leadership in cooperatives, the scheme aims to enhance household incomes and social status.
These schemes illustrate how cooperative finance can nurture entrepreneurship among youth and women. With simplified procedures and concessional loans, they empower communities that often face barriers in accessing formal credit.
Source: PIB
