Government announced 'Stand up India' scheme for credit facilities to SC, ST:To boost employment and entrepreneurship

Updated on: Monday, January 11, 2016

standup To boost employment and entrepreneurship, the government has approved funds of Rs 8,000 crore, that will stand guarantee for loans to new ventures. According to PTI reports, the cabinet also announced 'Stand up India' scheme for credit facilities to SC, ST and women entrepreneurs at lower rates.

The Cabinet, headed by Prime Minister Narendra Modi, cleared the creation of a Credit Guarantee Fund for MUDRA loans, Finance Minister Arun Jaitley said. Out of Rs 8,000 crore, Rs 3,000 crore has been given to MUDRA Credit Guarantee Fund (CGF) that will safeguard against the default of Rs 50,000 to Rs 10 lakh loan extended to small entrepreneurs.

The remaining Rs 5,000 crore will be given to Stand Up India CGF which will stand guarantee for Rs 10 lakh to Rs 1 crore loans to be provided to least 2.5 lakh SC/ST and women.

"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 government had set up MUDRA Ltd as a non- banking finance company (NBFC) last year. Under the 'Stand Up India' scheme, Jaitley said banks will give loans at the 'least applicable rate' of interest. 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, the MUDRA scheme has already extended loans worth Rs 72,000 crore to 1.73 lakh beneficiaries. 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.

Government announced 'Stand up India' scheme for credit facilities to SC, ST:To boost employment and entrepreneurship

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