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    Inclusivity Officials
    Jan 2 nd, 2018
    IMPORTANT GOVERNMENT SCHEMES-Schemes No Comments

    Stand Up India

    Stand Up India

    Stand-Up India Scheme launched by the Prime Minister Mr. Narender Modi on 5th April, 2016 is for financing the SC/ ST and Women Entrepreneurs by every bank branch. Its objective is to facilitate loan from 10 lakh to 1 Cr to at least to one SC/ ST and one  woman entrepreneur borrower for setting up a Greenfield enterprise. It is  repayable up to 7 years. Greenfield signifies the first time venture of the beneficiary of the manufacturing, service or the non- fram sectors. It aims at generating employment.

    In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be that of SC/ST or woman entrepreneur. Borrower should not be in default of any bank/financial institution. The loan may be secured by collateral security or by guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks. The loan may appropriately secured and backed by the National Credit Guarantee Trustee Company (NCGTC).

    Some important points for Stand-Up India Scheme are:

    • The scheme is anchored by Department of Financial Services (DFS) to encourage Greenfield enterprises by SC/ST and Women entrepreneur.
    • The scheme is intended to facilitate at least two such projects per bank branch on an average 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.
    • 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.
    • SC/ ST and Women entrepreneurs age should be above 18 years.
    • The Stand- Up India scheme provides for creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
    • The Stand- Up India scheme provides for handholding 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.
    • 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.

    This scheme covers all branches of Scheduled Commercial Banks the loan may be accessed in three potential ways:

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