UPSC 2016 Prelims : Standup India Scheme
The Stand Up India scheme is anchored by Department of Financial Services (DFS) to encourage greenfield enterprises by SC/ST and women entrepreneurs.
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. The Stand Up India scheme is intended to facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur.
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The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the Stand Up India scheme.
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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.
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The Stand Up India scheme provides for creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
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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.
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The Stand Up India scheme focuses on handholding support for both SC/ST and Women borrowers.
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The Stand Up India scheme’s overall intent 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.
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The loan under the Stand Up India 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.
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Margin money of the composite loan under the Stand Up India scheme 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.
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Question asked in UPSC 2016
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With reference to ‘Stand Up India Scheme’ which of the following statements is/are correct ?
- Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
- It provides for refinance through SIDBI.
Select the correct answers using the code given below.
a. 1 Only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
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Answer : c (Both 1 and 2)
