The Union Cabinet approved
the Stand Up India Scheme to promote
entrepreneurship among Scheduled Caste/Scheduled Tribes and Women entrepreneurs.
The Scheme is
intended to facilitate at least two projects per bank branch, on an average one
for each category of entrepreneur. It is expected to benefit at least 2.5 lakh
borrowers.
The expected date of
reaching the target of at least 2.5 lakh approvals is 36 months from the launch
of the Scheme.
Highlights
of the Stand Up India Scheme
• This scheme will
provide a refinance window through Small Industries Development Bank of India
(SIDBI) with an initial amount of 10000 crore rupees.
• Create credit
guarantee mechanism through the National Credit Guarantee Trustee Company
(NCGTC).
• Support for
borrowers both at the pre loan stage and during operations.
• Focus on
handholding support for both SC/ST and Women borrowers.
• The aim is to
leverage institutional credit structure to reach out under-served sectors of
the population by facilitating bank loans repayable up to 7 years and between
10 lakh rupees- 100 lakh rupees for Greenfield enterprises in nonfarm sector
set up by such SC, ST and Women borrowers.
• The loan under the
scheme would be appropriately secured and backed by a credit guarantee through
a credit guarantee scheme for which Department of Financial Services would be
the settler.
• The National Credit
Guarantee Trustee Company Ltd (NCGTC) will be the operating agency for the
loan.
• Margin money of the
composite loan would be up to 25 percent.
Background:
The "Start up
India Stand up India" initiative was announced by the PrimeMinister in his
address to the nation on 15th August, 2015. The Stand up India component is
anchored by Department of Financial Services (DFS) to encourage Greenfield
enterprises by SC/ST and Women entrepreneurs.
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