Startup Scheme for Cooperative Societies in India
A New Opportunity for Innovation and Growth in the Cooperative Sector
In recent years, the Government of India has taken several initiatives to strengthen the cooperative sector and encourage entrepreneurship through cooperative models. One of the most important initiatives is the Yuva Sahakar – Cooperative Enterprise Support and Innovation Scheme, which acts as a startup support scheme specifically designed for cooperative societies.
This scheme provides financial assistance, policy support, and innovation opportunities to newly formed cooperative societies across India. It aims to encourage young entrepreneurs, professionals, and community groups to start cooperative enterprises in different sectors such as agriculture, services, food processing, rural development, and social businesses.
The scheme is implemented by the National Cooperative Development Corporation (NCDC) under the supervision of the Ministry of Cooperation.
What is the Cooperative Startup Scheme?
The Yuva Sahakar scheme is designed to promote startup-style cooperative enterprises by providing financial and institutional support for innovative business ideas developed through cooperative societies.
The primary goal is to attract young entrepreneurs into the cooperative movement and transform traditional cooperative societies into modern, innovative, and technology-driven enterprises. This initiative helps newly registered cooperative societies access funding, develop innovative projects, and contribute to employment generation and rural economic growth.
Objectives of the Startup Scheme for Cooperative Societies
The main objectives of the scheme include:
1. Promote Cooperative Startups
The scheme encourages the formation of new cooperative societies with innovative business ideas, similar to startup companies.
2. Encourage Youth Entrepreneurship
It aims to involve young professionals and entrepreneurs in cooperative businesses, making them job creators rather than job seekers.
3. Strengthen the Cooperative Movement
By introducing modern business practices and innovative ideas, the scheme revitalizes the traditional cooperative system.
4. Support Rural and Community Development
Cooperative startups can improve rural economies by creating employment opportunities and strengthening local production systems.
5. Promote Inclusive Economic Growth
The scheme supports cooperatives formed by women, SC/ST members, and marginalized communities.
Key Features of the Cooperative Startup Scheme
1. Financial Assistance for Startup Projects
Eligible cooperative societies can receive project-based financial assistance for launching or expanding cooperative enterprises.
2. Long-Term Loan Support
The scheme offers term loans with repayment periods up to 5 years, allowing societies to develop sustainable businesses.
3. Interest Subsidy
A 2% interest subsidy is provided on loans for cooperative societies that repay their loans on time.
- Moratorium Period
Cooperative startups may receive a moratorium period of up to 2 years, giving them time to stabilize their business before repaying the principal loan.
5. Project-Based Evaluation
Funding is approved based on:
- Financial viability
- Innovation potential
- Employment generation
- Social and regional impact
Eligibility Criteria for the Scheme
To apply for the cooperative startup scheme, the society must meet the following conditions:
- The entity must be a registered cooperative society.
- The cooperative should have minimum operational activity of at least 3 months.
- The society must submit a viable business project or innovative idea.
- The project should contribute to economic development or employment generation.
Special benefits are provided for:
- Women cooperative societies
- SC/ST cooperative societies
- Cooperatives in aspirational districts
- Societies in North-Eastern states
In such cases, the equity contribution requirement is reduced compared to general categories.
Funding Structure of the Scheme
The scheme operates under a Cooperative Start-up and Innovation Fund, which supports new cooperative enterprises with significant financial resources.
Funding Pattern
| Category | Funding Support |
| Special category cooperatives | Up to 80% project cost |
| General cooperatives | Up to 70% project cost |
| Loan tenure | Up to 5 years |
| Interest subsidy | 2% |
This funding helps cooperative societies launch business activities without facing heavy financial burdens.
Sectors Supported Under the Scheme
Cooperative startup projects can be developed in multiple sectors, including:
- Agriculture and agri-processing
- Dairy and livestock
- Fisheries
- Food processing
- Rural tourism
- Renewable energy
- Handicrafts and MSME industries
- Logistics and storage
- Digital services
- Healthcare and education
This flexibility allows cooperative societies to explore modern business opportunities while maintaining cooperative principles.
Benefits of the Scheme for Cooperative Societies
1. Easy Access to Finance
Cooperative startups receive affordable loans and financial support.
2. Promotion of Innovation
Societies can introduce modern technologies and business models.
3. Employment Generation
Cooperative startups create job opportunities for local communities.
4. Strengthening Rural Economy
The scheme promotes economic activity in rural and semi-urban areas.
5. Inclusive Growth
Encourages participation of women, youth, and marginalized groups.
Importance of Startup Support for Cooperative Societies
Traditionally, cooperative societies were mainly engaged in agriculture and credit activities. However, modern economic challenges require cooperatives to adopt innovative business models.
Startup support schemes like Yuva Sahakar help cooperatives transform into dynamic, sustainable enterprises capable of competing in modern markets.
These initiatives align with the government’s vision of “Sahakar Se Samriddhi” (Prosperity through Cooperation), promoting inclusive economic development across the country.
Conclusion
The startup scheme for cooperative societies marks an important step toward modernizing the cooperative sector in India. By providing financial assistance, encouraging innovation, and supporting youth entrepreneurship, the scheme creates new opportunities for cooperative societies to grow and succeed.
With the right planning, management, and innovative ideas, cooperative societies can use this scheme to build successful enterprises that benefit not only their members but also the broader community.
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