Ques: Union Cabinet allocated the initial budget for “Stand Up India Scheme” of-
(a) 10,000 crore
(b) 20,000 crore
(c) 25,000 crore
(d) 30,000 crore
Ans (a)
Related facts:
- On January 6, 2016 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi approved the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and Women entrepreneurs.
- The Scheme is intended to facilitate at least two such projects per bank branch.
- The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Scheme.
- Refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs. 10,000 crore.
- Creation of a credit guarantees mechanism through the National Credit Guarantee Trustee Company (NCGTC).
- 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:
- Focus is on handholding support for both SC/ST and Women borrowers.
- 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 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.
- 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.
- Over a period of time, it is proposed that a credit history of the borrower be built up through Credit Bureaus.
- The “Start up India Stand up India” initiative was announced by the Prime Minister in his address to the nation on 15th August, 2015.
Reference