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Jan 6, 2016

[CA - Notes] Stand Up India Scheme


Stand Up India

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
Ø It provides for refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of 10000 crore rupees.
Ø It will create credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
Ø It will provide support for borrowers both at the pre loan stage and during operations.
Ø Its focus is on handholding support for both SC/ST and Women borrowers.
Ø 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.
Ø 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.
Ø The National Credit Guarantee Trustee Company Ltd (NCGTC) will be the operating agency for the loan.
Ø Margin money of the composite loan would be up to 25 percent.
The Start up India Stand up India initiative was announced by the Prime Minister, Mr.  Narendra Modi in his speech on 15 August 2015.


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