The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and Women entrepreneurs.
The Scheme seeks to facilitate at least two such projects on an average one for each category of entrepreneur per bank branch.
It is expected to benefit atleast 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.
The Stand-up India is component of Start-up India, Stand up India slogan anchored by Department of Financial Services (DFS) to encourage greenfield enterprises by Women and SC/ST entrepreneurs.
Features of Stand Up India Scheme
- It will refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount 10,000 crore rupees.
- Creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
- It will provide handholding support to the borrowers at both pre loan stage and during operations stage.
- Focus is on hand holding support for both SC/ST and Women borrowers.
- 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.
- The overall intent is to leverage the institutional credit structure to reach out to this under-served population. For this margin money of the composite loan will be up to 25%.
Background
Prime Minister in his Independence Day address to the nation on 15th August, 2015 had announced the “Start-up India, Stand up India” initiative.