Stand Up India Scheme
PM Shri Narendra Modi announced the “Start up India Stand up India” initiative 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 green field enterprises by SC/ST and Women entrepreneurs.
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, on 6th January 2016 approved the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and Women entrepreneurs.
The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Scheme.
“The Scheme is intended to facilitate at least two such 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 details of the scheme are as follows:
- 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.
- Focus is on hand holding support for both SC/ST and Women borrowers.
- To leverage the institutional credit structure, 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 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.
- Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus.
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.
- Creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
- Hand holding support for borrowers 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.
