The Yuva Sahakar Cooperative Enterprise Support and Innovation Scheme is a youth-centric initiative. The scheme is implemented by the National Cooperative Development Corporation (NCDC) under the Ministry of Cooperation, Government of India. This scheme was launched on 14th November 2018, by the Union Minister of Agriculture and Farmers’ Welfare, this scheme focuses on encouraging young entrepreneurs to establish and grow cooperative societies with innovative business ideas.
What is the Yuva Sahakar Scheme?
The YUVA Sahakar ia a government scheme to provide financial support in the form of long-term loans up to five years, with a 2% interest subvention as an incentive. Additionally, the loans under the scheme can be combined with other government subsidies, making it easier for youth-led cooperatives to access funding for start-ups or value-chain enhancement projects.
The Yuva Sahakar Scheme is part of the Sahakar 22 Mission, a vision aimed at doubling farmers’ income by 2022 by strengthening cooperative societies and promoting entrepreneurship among youth in rural and urban areas.
Who can Benefit from the Yuva Sahakar Scheme?
The scheme is primarily targeted at young entrepreneurs who wish to start or expand a cooperative society with new or innovative ideas. Cooperatives eligible under this scheme must meet the following conditions:
- Must be operational for at least three months (some sources suggest one year).
- Should have a positive net worth and no cash losses.
- Eligible cooperatives may include those composed entirely of women, Scheduled Castes (SC), Scheduled Tribes (ST), or Persons with Disabilities (PwD).
- Special focus is given to cooperatives in the North-Eastern Region and Aspirational Districts.
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What are the Key Features of the Yuva Sahakar Scheme?
The Yuva Sahakar Scheme has several notable features designed to make it attractive and accessible to youth-led cooperatives:
| Feature | Details |
| Financial Support | Provides long-term loans up to 5 years for starting or expanding cooperative societies. |
| Interest Subvention | 2% reduction on the loan interest rate for timely repayment. |
| Moratorium Period | Option of a 2-year moratorium on principal repayment, giving breathing space to new cooperatives. |
| Dedicated Fund | Linked to the Cooperative Start-up and Innovation Fund (CSIF) with a total corpus of Rs. 1,000 crore. |
| Project-Based Funding | NCDC evaluates funding based on project feasibility, impact, and innovation potential. |
| Special Category Incentives | Extra support for cooperatives in North-Eastern regions, Aspirational Districts, and societies fully composed of women, SC/ST, or PwD members. |
| Dovetailing of Subsidies | Loans can be combined with other government scheme subsidies to increase financial support. |
| Category-Based Funding | Category-A: Special areas or fully women/SC/ST/PwD cooperatives; NCDC covers 80% of project cost. Category-B: Other cooperatives; NCDC covers 70% of project cost. |
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What are the Benefits of the Yuva Sahakar Scheme?
The scheme offers multiple advantages, making it a comprehensive tool for youth empowerment in cooperatives:
- Youth Support: Helps young entrepreneurs start or expand cooperative businesses.
- Project Funding: Covers up to 80% of project costs for special category cooperatives.
- Interest Benefit: 2% lower interest on loans up to Rs. 3 crore for timely repayment.
- Quick Capital: Funds released against mortgages, FDRs, or government/cooperative guarantees.
- Regional Incentives: Extra support for cooperatives in North-East, Aspirational Districts, and special areas.
- Scheme Integration: Loans can be combined with other government subsidies for more financial support.
- Inclusion Focus: Encourages participation of women, SC/ST, and PwD members for fair growth.
How does the Loan Structure Work Under the Yuva Sahakar Scheme?
The loan under the Yuva Sahakar Scheme is designed to be flexible, affordable, and youth-friendly:
- Tenure: Up to five years depending on project type.
- Moratorium: Up to two years on principal repayment.
- Interest Rate: Reduced by 2% as an incentive for timely repayment.
- Security for Funds: Funds are released against assets such as:
- Mortgage of assets
- Fixed Deposits (FDRs) of scheduled banks
- Guarantees from cooperative societies, State Governments, NEDFI, or PSUs.
Who is Eligible to Apply for the Yuva Sahakar Scheme?
Eligibility criteria are straightforward and ensure that the scheme targets genuine youth-led cooperative initiatives:
| Eligibility Criteria | Details |
| Operational Cooperatives | Must have been running for at least 3 months to 1 year. |
| Positive Financial Status | Should have a positive net worth and no cash losses. |
| Special Category Focus | Women, SC/ST, and PwD members can get higher funding support. |
| Regional Focus | Priority given to cooperatives in North-Eastern regions and Aspirational Districts. |
| Types of Cooperatives | Any cooperative enhancing value chains in dairy, fisheries, agriculture, or allied sectors. |
How does Yuva Sahakar Scheme Contribute to Sahakar 22 Mission?
The Sahakar 22 Mission is aimed at doubling farmers’ income by 2022 through strengthening the cooperative sector. Yuva Sahakar contributes to this mission in several ways:
- Promotes entrepreneurship and self-employment among youth.
- Encourages cooperative societies to adopt innovative practices in agriculture, dairy, fisheries, and allied sectors.
- Strengthens value chains to ensure better market access and price realization for farmers.
- Focuses on inclusive growth by prioritizing women, SC/ST, and PwD members.
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How does the Yuva Sahakar Scheme Promote Inclusive Growth?
Inclusivity is a cornerstone of the Yuva Sahakar Scheme. This is achieved through:
- Women Empowerment: Supports cooperatives fully run by women.
- SC/ST Inclusion: Provides support to cooperatives with SC/ST members.
- PwD Support: Offers incentives to cooperatives led by or employing persons with disabilities.
- Regional Focus: Gives priority to cooperatives in North-East and Aspirational Districts.
What are the Special Incentives Under the Yuva Sahakar Scheme?
The scheme provides several incentives to make participation more attractive:
- Interest Subvention: 2% reduction in applicable interest rates for timely repayment.
- Higher Funding for Special Groups: Up to 80% funding for women, SC/ST, PwD members, or cooperatives in special regions.
- Loan Moratorium: Up to two years for principal repayment, reducing financial stress in the initial stages.
- Project-Based Funding: NCDC evaluates and funds projects that demonstrate innovation and impact on the value chain.
What Sectors are Covered Under the Yuva Sahakar Scheme?
The scheme primarily supports cooperatives in the following sectors:
- Agriculture: Crop production, value-chain enhancement, organic farming.
- Dairy: Milk collection, processing, and distribution.
- Fisheries: Fish farming, processing, and marketing.
- Allied Services: Poultry, cattle, cotton ginning and spinning, sugar, rural housing, healthcare, and hospitality services.
How does the Yuva Sahakar Scheme Strengthen the Cooperative Sector?
The Yuva Sahakar Scheme is designed not only to support individual youth entrepreneurs but also to strengthen the overall cooperative movement:
- Encourages Innovation: Supports projects that enhance the value chain.
- Expands Reach: Targets under-served regions like the North-Eastern states and Aspirational Districts.
- Capacity Building: Provides financial support and technical guidance to new cooperatives.
- Inclusive Growth: Focuses on marginalized groups for equitable development.
- Integration with Other Schemes: Leverages government subsidies for maximum impact.
What is the Role of NCDC in Implementing Yuva Sahakar Scheme?
The National Cooperative Development Corporation (NCDC), established in 1963, is a statutory body under the Ministry of Cooperation that acts as a financial and developmental institution for cooperatives. Its key responsibilities under the Yuva Sahakar Scheme include:
- Funding Projects: Releasing long-term loans and subsidies.
- Evaluation: Assessing proposals based on feasibility, innovation, and impact.
- Monitoring: Ensuring proper utilization of funds and timely repayment.
- Capacity Building: Supporting cooperatives through technical assistance and training programs.
As the apex body for cooperative financing, NCDC ensures the success and sustainability of the Yuva Sahakar Scheme.
Key Takeaway
| Feature | Details |
| Launch Date | 14th November 2018 |
| Implementing Body | National Cooperative Development Corporation (NCDC) |
| Objective | Encourage youth-led cooperatives with innovative ideas |
| Loan Tenure | Up to 5 years |
| Interest Subvention | 2% reduction on applicable rate |
| Moratorium | Up to 2 years on principal repayment |
| Special Focus | Women, SC/ST, PwD members, North-Eastern region, Aspirational Districts |
| Funding Corpus | Rs. 1,000 crore under Cooperative Start-up and Innovation Fund |
| Eligibility | Cooperatives operational for at least 3 months (or 1 year) |
Questions Based on Yuva Sahakar Scheme
- When was the Yuva Sahakar Scheme launched?
a) 2015
b) 2018
c) 2020
d) 2017
e) 2016 - Which body implements the Yuva Sahakar Scheme?
a) NABARD
b) NITI Aayog
c) NCDC
d) Ministry of Finance
e) SEBI - What is the maximum loan tenure under the scheme?
a) 3 years
b) 5 years
c) 7 years
d) 10 years
e) 2 years - What is the interest subvention provided under the scheme?
a) 1%
b) 2%
c) 3%
d) 5%
e) 0% - Which fund is linked to the Yuva Sahakar Scheme?
a) PM Kisan Fund
b) Cooperative Start-up and Innovation Fund (CSIF)
c) NAFED Fund
d) Pradhan Mantri Fasal Bima Fund
e) Rural Development Fund - Which category receives 80% funding under the scheme?
a) Urban cooperatives
b) North-Eastern and special groups
c) Private companies
d) Central government employees
e) All cooperatives equally - Who are the special focus groups under Yuva Sahakar Scheme?
a) Women, SC/ST, PwD
b) Only women
c) Only SC/ST
d) Farmers only
e) Entrepreneurs from cities - Where can applications for the scheme be submitted?
a) www.nabard.org
b) www.ncdc.in
c) www.india.gov.in
d) www.niti.gov.in
e) www.udyam.gov.in - What sectors are supported under the scheme?
a) Only agriculture
b) Agriculture, dairy, fisheries, allied sectors
c) Only dairy
d) IT and software
e) Manufacturing only - What is the purpose of the Sahakar 22 Mission?
a) Promote IT startups
b) Double farmers’ income
c) Increase exports
d) Reduce unemployment
e) Develop urban infrastructure
Also Read:
Answer Key:
| Question Number | Correct Answer | Question Number | Correct Answer |
| 1 | b | 6 | b |
| 2 | c | 7 | a |
| 3 | b | 8 | b |
| 4 | b | 9 | b |
| 5 | b | 10 | b |
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