Rajiv Yuva Scheme : Rajiv Yuva Scheme has come as a ray of hope for thousands of innovating youth of India, who do not have the money to make their business ideas come true.
This ambitious Government scheme is designed to create entrepreneurship in the youth and provide collateral free loans with the maximum amount of loan available being Rs 4 lakh with a lower rate of interest and easier application process.
With the problems of unemployment still looming despite economic growth, it is seen as a major thrust to demonstrate self employment and entrepreneurship as potential career options for the youth of India.
For qualifying recipients, those loans could be the difference between dashed ambitions and successful small businesses that can offer jobs to others.
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Key Highlights of Rajiv Yuva Scheme
The loan product features several innovative elements geared towards young entrepreneurs with limited access to mainstream credit:
Amount of Loan: Upto Rs. 4 lakhs disbursed in instalments based on the viability of business plan and achievement of milestones.
Interest Subsidy: With government subsidy, you can get interest rate as low as 4-6% pa which is much cheaper than provided by market for unsecured loans.
Security / Collateral: Security and / or third-party guarantee to be generally secured for loans above Rs. 2 lakhs. Simple security for full Rs. 4 lakhs.
Repayment time: 5-7 yearsPeriod-consuming repayment, granting enterprises 6-12 months of grace period to phase in project.Staggered repayment: 5-7 years and 6-12 months of grace period.
Waiver on Processing Charges: Full waiver on processing fees, documentation charges and pre-payment charges.
Built-in Mentoring: Via partner organizations, recipients will be connected to industry mentors to help them navigate those critical early days of their venture.
The breathing space it gave us in terms of the repayment period – that’s the real value of this scheme,” says 26-year-old Indore resident Rahul Sharma, who used the scheme to start a small food processing unit.
When EMIs started there was a one year time frame, 12 months during which I could make use of early revenue to further expand rapidly rather than start servicing the loan immediately.
Rajiv Yuva Scheme Who Can Apply (Eligibility Criteria)?
Specific eligibility criteria among youth entrepreneurs are part of this scheme ensuring that the money flows to those who need the help, and those who show potential:
Age Limit: Candidates age limit should be between 18 to 35 years (for Specific Categories relaxation upto 45) Years.
Educational Qualifications:
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Minimum 10th standard pass
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Applicants with background in relevant discipline will be given preference.
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Preference shall be given to skill training certification from reputed institutions.
Business Requirements:
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Comprehensive business plan for Start Up or Expanding Small Enterprise
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Business concept should be sustainable and scalable
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Key sectors include manufacturing, service-sector businesses, agriculture, and indigenous crafts industries.
Other Criteria:
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Family income is not more than Rs. 6 lakhs per annum
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Have to attend compulsory 3 days Entrepreneurship Development Program (EDP)
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Must not be a defaulter of any bank or financial institution
The young startup founder at heart (though small business owners looking to grow won’t be neglected.)
Meena Patel, loan officer, participating bank (Gujarat): “The good applications are those which are supported by market research and are not empty statements about the way the business is going to be run.
“I find that those who can show that they are educated about their target customers, their competitors, and their industry at large, tend to proceed further down the funnel in the interview process,” she adds.
Rajiv Yuva Scheme How to Apply: A Step by Step Guide
Like applying for business loans, current options may have us hustling, but the application process is simplified:
Step 1: Online Registration The application form shall be submitted online at the official portal of Rajiv Yuva.
Step 2 – Application Form Fill in the application form, among others with:
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Personal details
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Educational qualifications
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Business proposal overview
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Projected funds needs and how they they will be disbursed
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Market analysis summary
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Projected number of new jobs
Step 3: Mandatory EDP Attend Register and complete 3 day programme of Entrepreneurship Development Program with partner institutions.
This is training covering to economic fundamentals, entrepreneurship and business planning.
Step 4: DPR for Soft Drink Making Prepare a detailed project report with following contents: 4 User Guide For Preparation of DPR for Soft Drink Making (Adapted from Investment Commission of India) 41)General Instructions Compile DPR with due diligence as per the prescribed format & other relevant details.
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Executive summary
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Organization description
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Market analysis
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Service/product line details
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Marketing and sales strategy
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3 to 5 years of financial projections
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8.1 Funding needs/ use of resources
Step 5: Submission and Evaluation of DPR Submit the DPR on portal, and it will be evaluated by the district level committee for preliminary audit.
Step 6: In person pitching – Shortlisted students pitch their business idea to the evaluation committee, usually made up of member banks, and industry experts and/or administrators of the scheme.
Step 7: Signing & Disbursal After approval, sign loan agreement with bank. The first installment is usually around 40-60% on the sanctioned amount followed by draw-downs based on meeting pre-determined milestones.
Vikram Singh, whose rural tourism startup in Uttarakhand just got funded, recommends “don’t undermine the value of the EDP session.”
It more than anything forced me to organize my business model and pro-formas, which also made my proposal stronger during the review.
Rajiv Yuva Scheme Required Documentation
There are several documents applicants must gather for this application:
Identity and Address Proof:
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Aadhaar card
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Voter ID/Driving License/Passport etc.
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Most recent utility bill or lease agreement
Educational Qualifications:
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Marksheets and certificates of their highest qualification
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Skill development training certifcates (if any)
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(If applicable) Documents of previous business experience
Financial Documents:
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Proof of income of applicant and dependents
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The last six months of bank statements
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IT return of previous two years (if applicable)
Business-Related Documents:
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Detailed Project Report
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quotes for machinery / equipment to be procured
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Ownership/Rental documents of Premises if any
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Licences and Permits that may be applicable to the business
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Former business financials (for expansion)
This dramatically reduces the amount of time required to process those files. Nearly all banks have an extensive list provided during pre-application counseling sessions.
Benefits and Canaries in the Sectoronderea882Sector-Specific Benefits and Incentives 883 Ways Arend4130.pm -0 MB Table 35.
Incentive options, by business and applicant demographics, being offered through the program include:
Manufacturing Ventures:
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15 percent of additional capital subsidy (maximum Rs 35,000) for machinery purchase
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Moratorium period longer than 18 months to be optionaldENSITYTINGS deterPRESSMONEY More than 18 months moratorium to be optional
Service Sector Initiatives:
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An optional increase of up to 20% above the normal allocation for working capital
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Partner agencies provided support for digital Marketing
Women Entrepreneurs:
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Extra 1% interest subsidy (i.e. up to 6 months)
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Extended maturity by an additional 12 months
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Specialised mentoring through women entrepreneur networks
Rural Enterprises:
Geographical (place-wise) supplement to the businesses of Aspirational Districts on additional subsidy
Rajiv Yuva Scheme Convergence with rural livelihood mission resources
Sangeeta Kumari, who set up a successful handloom products business in Bihar through the scheme, cites these as benefits: “As a woman entrepreneur from a rural area, I could avail of both the benefits, and so my actual interest rate was only 3.5% and the training that I got from the local women’s business collective was of immense help in understanding export compliance,etc.
Standard Rejections and Why They Happen
Knowing What Causes Decline: Why Your App Gets Denied And increasing your approval odds for it:
Insufficient Market Insight: Often, planning doesn’t show deep enough understanding of market (i.e., customers, competitors, dynamics). Instead of making your DPR and you are good to go, conduct surveys,interview a few customers, and spy on a few competitors before setting down your DPR.
Unrealistic Financial Projections – Financial pro formas that are too aggressive and are not based upon empirical data send up red flags. Be conservative and well-researched in your projections and make the assumptions clear.
Lack of Entrepreneur Hospice It: Judges are seeking a founder that is committed and who has some skin in the game. Be ready to explain why you’ve chosen this business and how you’ll work through challenges.
Insufficient Paperwork: Misguided or lack of paperwork resulting delays and even rejection. Use the official checklist and contact scheme helpdesks if you are unsure you are complying.
Template Business Models: Harder to make a commodity business fly when it’s not different or offers any sustainable competitive advantage. This article describes what to look out for and how to articluate the unique value.
Banking officer Rajesh Verma, a member of a district-level evaluation committee, says, “We basically search for viability and the borrower’s knowledge of it’s business.
A conservative proposal that makes reasonable assumptions and with good market awareness often trounces a bold plan with shaky assumptions.”
Rajiv Yuva Scheme Support after Approval and Monitoring
The scheme does not end with the disbursal of loans, but provides ongoing support systems:
Quarterly Milestone Reviews: Periodic periodic checkin with your assigned advisor, measurement of progress vs. the planned business plan.
Skill-development gives those entrepreneurs free or discounted workshops and courses for learning specific to that entrepreneur’s sector case space business sector.
Networking Possibilities: Membership into district and state entrepreneurship cells to learn from each other and grow your business.
Linkages to Markets Help in linking producers to buyers, suppliers, or distribution channel facilitated by government programmes.
Digital Presence Creation: Minimal help with starting an online presence including easy eCommerce enabling and social media integration.
For the vast majority of successful candidates, these post-approval support services are as beneficial as the injection of funds, especially for first-time business owners who are struggling to stay on their feet.
While the applications process is open interested entrepreneurs are encouraged to early prepare for their application, including the development of realistic business plans that are responsive to the market and can show both financial and employment impact.
