Telangana’s Rajiv Yuva Vikasam Scheme: CIBIL Score Concerns Spark Anxiety
Scheme Overview
The Telangana government’s Rajiv Yuva Vikasam Scheme 2025 aims to empower unemployed youth from SC, ST, BC, and minority communities by providing subsidized loans for self-employment ventures. Offering financial assistance ranging from ₹50,000 to ₹4 lakh, the scheme targets 5 lakh beneficiaries with a ₹6,000 crore budget to foster entrepreneurship and economic independence.
Loan Categories and Subsidies
The scheme provides tiered financial support to cater to diverse entrepreneurial needs, with subsidies varying by loan amount. The structure ensures accessibility for small-scale ventures while supporting larger business initiatives.
Loan Tiers
| Category | Loan Amount | Subsidy | Beneficiary/Bank Contribution |
|---|---|---|---|
| Category 1 | Up to ₹50,000 | 100% | None |
| Category 2 | ₹50,001–₹1 lakh | 90% | 10% |
| Category 3 | ₹1,00,001–₹2 lakh | 80% | 20% |
| Category 4 | ₹2,00,001–₹4 lakh | 70% | 30% |
Eligibility Criteria
Eligible applicants must be unemployed Telangana residents aged 21–55 (non-agricultural) or 21–60 (agricultural), belonging to SC, ST, BC, or minority communities. Annual income must not exceed ₹1.5 lakh (rural) or ₹2 lakh (urban), with required documents including Aadhaar, community certificate, and income proof or ration card.
CIBIL Score Controversy
Recent reports indicate that a CIBIL score of 700 or higher is required for loan approval, causing widespread concern among applicants. In Adilabad district alone, 40,270 individuals applied, but the stringent credit score criterion may disqualify many, particularly those with prior loan defaults or limited credit history.
Official Clarifications
Deputy Chief Minister Mallu Bhatti Vikramarka has refuted claims that CIBIL scores are a primary criterion, emphasizing that the scheme prioritizes genuine unemployed youth. Despite this, bank officials in Bellampalli confirmed that loan histories and CIBIL scores, accessed via PAN cards, will influence beneficiary selection, creating confusion among applicants.
Application and Selection Process
Applications were accepted online via tgobmms.cgg.gov.in from March 15 to April 14, 2025, with document verification ongoing. A committee led by district collectors evaluates applications based on eligibility, business plans, and financial history, with loan sanctions scheduled for June 2, 2025 (Telangana Formation Day).
Prioritization of Applicants
First-time borrowers and those with relevant business experience are prioritized to ensure effective fund utilization. This approach aims to support viable entrepreneurial ventures while addressing the challenges of loan distribution amid high application volumes.
Impact and Challenges
With over 16 lakh applications statewide, including 5,35,666 from BCs and 2,95,908 from SCs, the scheme has garnered significant interest. However, the reported CIBIL score requirement could exclude up to 40% of applicants, raising concerns about accessibility for economically disadvantaged youth.
Support and Transparency
To facilitate applicants, the government offers a helpline (040-23120334) and email support ([email protected]). District-level committees ensure transparent selection, with training programs planned to enhance beneficiaries’ entrepreneurial skills.
Future Prospects
The Rajiv Yuva Vikasam Scheme represents a transformative step toward reducing unemployment and promoting micro-entrepreneurship. However, addressing the CIBIL score controversy and ensuring inclusive access will be critical to its success in uplifting marginalized communities.