Youth Startup Loan Scheme: In today’s rapidly changing world, young brains are brimming with fresh concepts and a desire to effect positive change. Worldwide, governments and organizations are creating initiatives like the “Skilled Youth Startup Scheme” to empower young entrepreneurs and give them the resources, opportunities, and support they need to turn their ideas into successful businesses. This article discusses the goals of the Skilled Youth Startup Scheme, its benefits, and how it contributes to the growth of the next generation of business leaders.
Skilled Youth Startup Scheme
The Commerce & Industries Department of the Government of Sikkim launched the “Skilled Youth Start-Up Scheme (SYSS)” with effect on August 15, 2020, with the goal of lowering unemployment and long-term self-employment prospects.
By creating Manufacturing, Service, Business, Co-Operative, Agriculture, and Allied Activities with loans (category wise) and back-ended subsidy assistance from the State Government @ 50% for Below Poverty Line (BPL) and @ 35% for rest on financially viable/ bankable Projects, SYSS is intended to create equitable entrepreneurial opportunities in rural as well as urban areas of Sikkim, especially among the educated unemployed youth to become self-employed.
Skilled Youth Startup Scheme Objectives
The Sikkim Skilled Youth Startup Scheme 2023’s major goal is to give young people new possibilities for a living so they may become independent. The establishment of a committee to advise and educate the scheme beneficiaries has been given the go-ahead by the nodal department. Sikkim offers a wide range of chances for self-employment, including those in the dairy, poultry, and piggery industries. Youth can now develop their entrepreneurial talents and be inspired to support the socioeconomic growth of the state.
- To encourage the local unemployed youth to develop their entrepreneurial skills and to start any commercially viable/bankable business venture in any industry, including agriculture, horticulture, food processing, animal husbandry, handloom and handicrafts, retail, tourism, services, manufacturing, etc. in the State in accordance with State Government policies.
- To establish new self-employment ventures or projects and create equitable entrepreneurial opportunities in both urban and rural areas of the State by offering a one-time, non-refundable financial assistance of 50% or 35% with a back-ended subsidy upon project approval by the Bank/PSU financial institution.
The project will be evaluated for its financial viability and help will be given for its credit linkage with financial institutions and line Departments by the Department of Commerce & Industries, Government of Sikkim, through the District Industries Centres (DICs).
Skilled Youth Startup Scheme Benefits
The following benefits will be provided to eligible educated but unemployed youths of under Skilled Youth Startup Scheme
- The applicant from the BPL category will receive a 50% subsidy on the project cost.
- The applicant from another category will receive a 35% subsidy on the project cost.
- The applicant is required to make a 5%–15% personal contribution to the project costs.
- The remaining project costs will be covered by loans from banks.
Skilled Youth Startup Scheme Eligibility
Eligibility of the Applicant:
- The applicant must be a genuine local teenager who has a Certificate of Identification or a Sikkim Subject Certificate/ Certificate of Identification issued to the applicant’s parents.
- The candidate must be jobless.
- The candidate must have a fifth-grade education from an accredited institution.
- Only one family member is eligible to get benefits from the program.
- The candidate must be between 15 and 40 years old on the application date.
- In this program, priority is given to jobless local kids from BPL households or rural communities.
- The candidate must have a current commercial driving license to participate in some service sector activities.
- The applicant must hold a current trade license issued by an appropriate government to start a manihari or grocery store.
- The candidate must have completed a certificate program lasting at least three months from a professional institute to open a new boutique shop or beauty salon.
Skilled Youth Startup Scheme Document Required
- 2 Passport Size Photo.
- Residence Proof of Sikkim.
- Education Related Documents.
- Project Report.
- Address Proof.
- Unemployment Card.
- BPL Certificate. (If Applicable)
- Income Certificate.
- Disabled Certificate. (If Applicable)
Skilled Youth Startup Scheme How to Apply
- Through an offline application form, eligible applicants may request capital assistance under the Sikkim Skilled Youth Startup Scheme.
- The Department of Commerce and Industries of Sikkim’s office will provide the application form free of charge.
- Correctly complete the application form and include any necessary supporting documentation.
- submit the application form and all supporting documentation to the Department of Commerce and Industries’ general manager’s office.
- The application form will be examined by a Department of Commerce and Industries committee under the direction of the General Manager.
- The government training institutions will provide five days of entrepreneur training to selected beneficiaries.
- The grant money will then be sent to the relevant bank where the applicant is applying for a loan for the remaining investment.
- The loan payback schedule will follow bank regulations.
Skilled Youth Startup Scheme Application Process
Step 01: The applicant must send their applications in hard copies, along with the Detailed Project Report and the Mandatory Documents, to the following address: General Manager, DIC (E/N)/(S/W), Govt. of Sikkim, Gangtok/Jorethang, in the format specified in Annexure-I of the scheme rules.
Step 02: After receiving the application and the necessary supporting documentation, the District Industries Center shall provide an acknowledgment in the format specified in Annexure-II, duly noting the Application ID.
Step 03: The project will be examined by the selection committee for preliminary approval, and the list will be sent to headquarters for information.
Step 04: The Selection Committee will receive advice regarding the approval of the back-end subsidy from the committee led by the Secretary of the Commerce & Industries Department.
Step 05: The Government, through the Commerce & Industries Department, will provide the relevant public sector banks, PSUs, and financial institutions with the admissible financial assistance of either 50% or 35% of the approved bankable project cost in the form of back ended subsidy upon project approval and disbursement.
Activities Covered for Subsidy with Project Cost
|Business Category||Maximum Project Cost|
|Animal Husbandry, Agriculture & Allied Activities –
(Dairy, Poultry and Piggery)
|Organic Farming – Green House||Rs. 3 Lakh.|
|Food Processing and Manufacturing Sector||Rs. 10 Lakh.|
|Wood Handicraft & Cottage Industries||Rs. 10 Lakh.|
|Metal Fabrication Works||Rs. 10 Lakh.|
|Tourism – Paragliding, Mountain Cycling etc.||Rs. 10 Lakh.|
|Rural Homestays||Rs. 15 Lakh.|
|IT & IT Enabled Services||Rs. 10 Lakh.|
|Cutting and Tailoring for Registered Societies||Rs. 20 Lakh.|
|Bakery and Restaurants||Rs. 15 Lakh.|
|Beauty Parlour, Boutique, Grocery, Retail Shop||Rs. 10 Lakh.|
|Coaching Institute or Training Centre||Rs. 5 Lakh.|
|Herbal Product Industry like Nurseries||Rs. 10 Lakh.|
|Paper Bags. Paper Plates||Rs. 10 Lakh.|
|Bamboo based Industry||Rs. 10 Lakh.|
|Automobile Workshop Garage/ Car Spa||Rs. 10 Lakh.|
|Diagnostic Centres||Rs. 20 Lakh.|
|Film Auditorium||Rs. 20 Lakh.|
For more details, visit the official website At: https://sikkim.gov.in/departments/commerce-and-industries-department
The Skilled Youth Startup Scheme stands as a testament to the belief in the potential of young minds and their ability to drive economic growth and innovation. By providing the necessary resources, mentorship, and support, this initiative empowers skilled youth to bring their entrepreneurial dreams to life. As more governments and organizations recognize the value of such schemes, we can look forward to a future where young entrepreneurs shape industries, disrupt norms, and create a positive impact on society.