Cabinet approves Stand Up India Scheme to boost entrepreneurship among SC/ST and Women
Updated: Jan 06, 2016 02:56:02pm
New Delhi, Jan 6 (KNN) In a move which would benefit as many as 2.5 lakh borrowers atleast in the timeframe of 3 years, the Union Cabinet today approved the 'Stand Up India Scheme' in order to promote entrepreneurship among SC/ ST and Women entrepreneurs.
The Scheme aims to facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur.
The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Scheme, Union Cabinet chaired by Prime Minister Narendra Modi said in a release.
The Stand Up India Scheme provides for refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore.
The scheme also seeks creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
Under the scheme, handholding support for borrowers would be provided both at the pre loan stage and during operations.
“This would include increasing their familiarity with factoring services, registration with online platforms and e-market places as well as sessions on best practices and problem solving,” said the Cabinet release.
“The overall intent of the approval is to leverage the institutional credit structure to reach out to these under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs. 10 lakh to Rs. 100 lakh for greenfield enterprises in the non-farm sector set up by such SC, ST and Women borrowers,” said the release.
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 and National Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency.
Margin money of the composite loan would be up to 25%. Convergence with state schemes is expected to reduce the actual requirement of margin money for a number of borrowers, the release added.
Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus, said the Cabinet. (With PIB Inputs)
The Scheme aims to facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur.
The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Scheme, Union Cabinet chaired by Prime Minister Narendra Modi said in a release.
The Stand Up India Scheme provides for refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore.
The scheme also seeks creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
Under the scheme, handholding support for borrowers would be provided both at the pre loan stage and during operations.
“This would include increasing their familiarity with factoring services, registration with online platforms and e-market places as well as sessions on best practices and problem solving,” said the Cabinet release.
“The overall intent of the approval is to leverage the institutional credit structure to reach out to these under-served sectors of the population by facilitating bank loans repayable up to 7 years and between Rs. 10 lakh to Rs. 100 lakh for greenfield enterprises in the non-farm sector set up by such SC, ST and Women borrowers,” said the release.
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 and National Credit Guarantee Trustee Company Ltd. (NCGTC) would be the operating agency.
Margin money of the composite loan would be up to 25%. Convergence with state schemes is expected to reduce the actual requirement of margin money for a number of borrowers, the release added.
Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus, said the Cabinet. (With PIB Inputs)
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