Stand Up India Scheme approved

  • The “Start up India Stand up India” initiative was announced by the PrimeMinister 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 greenfield enterprises by SC/ST and Women entrepreneurs.

  • 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 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 Scheme provides for:

  1. Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs. 10,000 crore.
  2. Creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
  3. 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.

The details of the scheme are as follows:

  1. Focus is on handholding support for both SC/ST and Women borrowers.
  2. 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. The loans are 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.
  3. The loan under the scheme would be appropriately secured and backed by a credit guarantee through a credit guarantee scheme
  4. 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.
  5. Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus.
Related Posts
Karnataka: Mysuru Railway Division Intensifies Track Patrolling
The Mysuru Division of South Western Railways has initiated additional precautionary measures to beef up rail safety following the recent train accident near Kanpur that claimed nearly 150 lives. This includes ...
READ MORE
Primary Health Centres (PHCs) in six districts of Karnataka
Fifteen primary health centres (PHCs) in six districts of Karnataka are set to get eLAJ smart clinics that will be equipped with multi-parameter monitors that enable multiple diagnostic tests and ...
READ MORE
Karnataka Current Affairs – KAS / KPSC Exams – 6th May 2017
Mincheri hill to turn into tree park The Mincheri Hill Range, which is among the lesser known trekking routes in Ballari district, is now being developed into a tree park. It ...
READ MORE
Researchers have identified a brain region that links anxious temperament to low social status. In the study, researchers performed a series of experiments on rats to identify the brain areas involved ...
READ MORE
Karnataka Current Affairs – KAS / KPSC Exams – 9th June 2017
Uranium mining to move out of Gujanal to uninhabited areas Uranium mining is being moved out of Gujanal village in Gokak taluk of Belagavi district after complaints from villagers that deep ...
READ MORE
Homeless rural residents of Karnataka will now get additional funds to build their houses In a first for the country, the State government has decided to dovetail funds meant for subsidised ...
READ MORE
INSAT-3DR
INSAT-3DR Why in News: In its tenth flight (GSLV-F05) conducted recently, India’s Geosynchronous Satellite Launch Vehicle, equipped with the indigenous Cryogenic Upper Stage (CUS), successfully launched the country’s weather satellite INSAT-3DR, ...
READ MORE
Medicines
Tirthahalli taluk in grip of Kyasanur Forest Disease Tirthahalli taluk continues to remain in the grip of Kyasanur Forest Disease (KFD), also known as monkey fever, as four positive cases among ...
READ MORE
In a first, IMD to bring out summer forecast
For the first time in its history, the India Meteorological Department — best known for its monsoon forecasts — will issue a summer forecast for April, May and June Those involved ...
READ MORE
Karnataka Current Affairs – KAS / KPSC Exams – 9th July 2017
4 projects get STAMP of approval Four entrepreneurs who pitched solutions to improve the first- and last-mile connectivity to Namma Metro stations in Bengaluru will soon get a chance to execute ...
READ MORE
Karnataka: Mysuru Railway Division Intensifies Track Patrolling
Primary Health Centres (PHCs) in six districts of
Karnataka Current Affairs – KAS / KPSC Exams
Anxiety is related to social status
Karnataka Current Affairs – KAS / KPSC Exams
Rural poor in state get MNREGA support to
INSAT-3DR
Karnataka State Current Affairs – KAS / KPSC
In a first, IMD to bring out summer
Karnataka Current Affairs – KAS / KPSC Exams