1. Govt clears ‘Stand up India’ to fund SC, ST, women entrepreneurs

Govt clears ‘Stand up India’ to fund SC, ST, women entrepreneurs

In a bid to create jobs and promote entrepreneurship, the Cabinet today approved Rs 8,000- crore funds that will stand guarantee for loans to new ventures and also announced 'Stand up India' scheme for credit facilities to SC, ST and women entrepreneurs at lower rates.

By: | New Delhi | Published: January 6, 2016 9:57 PM

 

start ups branding

The ‘Start up India, Stand up India’ initiatives were announced by Modi in his Independence Day speech. (Express Archive)

In a bid to create jobs and promote entrepreneurship, the Cabinet today approved Rs 8,000- crore funds that will stand guarantee for loans to new ventures and also announced ‘Stand up India’ scheme for credit facilities to SC, ST and women entrepreneurs at lower rates.

While the Rs 3,000 crore MUDRA Credit Guarantee Fund (CGF) will act as hedge against default of Rs 50,000 to Rs 10 lakh loan extended to small entrepreneurs, the Rs 5,000 crore Stand Up India CGF will stand guarantee for Rs 10 lakh to Rs 1 crore loans to be provided to least 2.5 lakh SC/ST and women.

The Cabinet, headed by Prime Minister Narendra Modi, today cleared creation of a Credit Guarantee Fund for MUDRA loans, Finance Minister Arun Jaitley told reporters here.

It also gave its nod to convert MUDRA Ltd, a pet venture of the Centre for funding small businesses, into MUDRA-SIDBI Bank, a wholly owned subsidiary of Small Industries Development Bank of India (SIDBI).

The government had last year set up MUDRA Ltd as a non- banking finance company (NBFC).

Under the ‘Stand Up India’ scheme, Jaitley said banks will give loans at the “least applicable rate” of interest.

“Every bank branch, including private sector, will give loans between Rs 10 lakh and 1 crore to at least one SC/ST and one woman entrepreneur under the scheme,” he said.

Stand Up India scheme, which is likely to be launched along with Start up India scheme on January 16, will be implemented through 1.25 lakh bank branches.

Launched in April 2015, MUDRA scheme has already extended loans worth Rs 72,000 crore to 1.73 lakh beneficiaries and the target for the entire fiscal is Rs 1.22 lakh crore.

Financial Services Secretary Anjuly Chib Duggal said the National Credit Guarantee Trustee Company Ltd (NCGTC) would be the Trustee for both the CGFs of MUDRA as well as Stand Up India.

Under the Stand up India scheme, it is expected that the target of at least 2.5 lakh approvals will be met in 3 years from the launch of the scheme, Duggal said.

The scheme will handhold 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,” an official statement said.

The overall intent of the scheme is to leverage the institutional credit structure to reach out to under-served segments of the society by facilitating bank loans repayable up to 7 years for greenfield enterprises in the non-farm sector, it added.

Under the Scheme, the margin money would be up to 25 per cent, while remaining would be funded by the bank.

“The convergence with state schemes is expected to reduce the actual requirement of margin money for a number of borrowers,” it said.

The ‘Start up India, Stand up India’ initiatives were announced by Modi in his Independence Day speech.

With regard to Micro Units Development Refinance Agency (MUDRA) Yojana, the official statement said “the MUDRA (SIDBI) Bank will undertake refinance operations and provide support services with focus on portal management, data analysis etc apart from any other activity entrusted or advised by Government of India”.

The Credit Guarantee Fund is expected to guarantee more than Rs 1 lakh crore worth of loans to micro and small units in the first instance, it said, adding it will help in reducing risk taken by banks and financial institutions in case of default under the scheme.

Three products available under the PM MUDRA Yojana are Shishu, Kishor and Tarun to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.

Shishu covers loans up to Rs 50,000 while Kishor covers above Rs 50,000 and up to Rs 5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs 10 lakh.

  1. A
    Assemwatila jamir
    Jun 23, 2017 at 11:29 am
    Commendable scheme for women entrepreneurs, I would also love to apply Stand Up India Loan.
    Reply
  2. A
    Ajoy kumar
    Jun 12, 2016 at 4:56 am
    mera opinion hai ki government jo bhi yojna nikalti hai wo sab amiro ke liye hin nikalti hai.kyunki we unki sabhi requirement and doents ko pura karte hain.hum jaise garib log chah kar bhi aage nahi badh pate hain kyunki hum unki sari doent or requirement ko pura nahi kar pate.or hum log soch kar hin rah jate hain ki is tarah ke yojna se humlogo ko bhi labh milega
    Reply
  3. A
    Ajoy kumar
    Jun 12, 2016 at 4:58 am
    please.hum government ke har yojna officer se kahna chahte hain ki hum log jo aage badhna chahte hain usko aage badne me maddad kare
    Reply
  4. A
    anand
    Jan 17, 2016 at 2:51 am
    Which banks should we approach for start up india scheme loans ? We are planning a take away restaurant
    Reply
  5. B
    bryce knorr
    Sep 27, 2016 at 12:29 am
    o friends, just want to inform everyone here that KIVA offers flexible loans without credit check, no collateral needed, no elaborate paper work. A friend referred me to them. I got my loan from them few days ago. Their loan process was fantastic. If you need a fast loan, you can contact their agent via his email (johnson.kivagroup[at]gmail[dot]com)
    Reply
  6. S
    suresh chand
    Mar 1, 2016 at 4:53 pm
    This is only doentation to show to the people not give the loan for business if a bank is giving loan only those people thats only relative to the bank manger 's I m sc candidate i fillup ITR ,i have current ac but aany bank not doing help me. SO i request to PM Shri Modi ji koi esa contact no de jiski sikayat hum aap se kar sake.
    Reply
  7. S
    sajan
    Mar 8, 2016 at 4:22 pm
    Banks provide loans and rate of interest is 12.9% . for that we have to produce 14 items .
    Reply
  8. K
    k premila
    Jan 9, 2016 at 7:06 am
    this is good scheme for women enterprenures
    Reply
  9. S
    saraswati
    Apr 28, 2016 at 3:03 am
    This is a good scheme.. But here we hv to face so many process.. Like agr hm koi scheme me loan lena bhi chahte hai to..yha kafi sare ase doents mange jate hai jo hmare ps nhi hote.. Aur inhe complete krwane mai bhi kafi time lg jata h.. So.. Its not easy to get it.. Just bcoz of process
    Reply
  10. N
    niranjan singh
    Apr 6, 2016 at 7:32 am
    sir how did i get the loan
    Reply
  11. S
    S.R Naik
    May 2, 2016 at 2:55 pm
    Hi'I belongs to ST and now wanted to avail loan for tune of 15 lacks for purchasing CARS for deployment to L&T as i likely to get rental contract.(Will produce the contract agreement)So how can i get the loan for purchase the CARS. For security of the loan wil provide you the Govt Employee guarantee.
    Reply
  12. A
    anjum reza
    Apr 9, 2016 at 6:32 pm
    If you looking this kinds of loans .you have to follow a lot of instruction It's not easy to got for normal people particularly who is stay in villages I had tried
    Reply
  13. R
    Radha
    May 4, 2016 at 5:20 am
    Sir I am single and started a small lady garments unit.I have no other earning member. I am having financial problems to run the unit. Please help how should I get some help as single lady to be able to support my unit.
    Reply
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