The Small Industries Development Bank of India (Sidbi) will be raising the proposed Rs.10,000-crore corpus for ‘Stand Up India Fund’ from RBI, which will be disbursed to Dalit and women entrepreneurs, a top official said.
“We are working to have the corpus in place for the Stand Up India Fund corpus. It will be raised from the Reserve Bank through the priority sector lending shortfalls,” Sidbi chairman and managing director Kshatrapati Shivaji told PTI here.
Shivaji said the corpus will be used to refinance loans extended by the banks to the scheduled castes, scheduled tribes and women entrepreneurs as part of the ‘Stand Up India’ scheme announced by the government earlier this year.
Shivaji said the groundwork on implementation of the scheme has already started. Under the scheme announced by Prime Minister Narendra Modi earlier this year, each bank branch has been mandated to lend to one micro-enterprise promoted by a woman and SC/ST entrepreneur.
Shivaji said plans are also afoot to have a credit guarantee fund for such loans, wherein the entrepreneurs can pay a premium which will help her/him get a cover in case of a loan default.
Sidbi is currently working on four new credit guarantee funds, apart from the already operational Credit Guarantee Fund Trust for Micro and Small Enterprises which gives a cover of up to Rs.1 crore for MSME loans, he said.
The funds include one devoted for factoring, educational loans, Mudra loans of up to Rs.10 lakh and also the Stand Up India loans, he elaborated. Shivaji further said the development finance institution is likely to close FY16 with a refinance of Rs.43,000 crore of loans extended to small businesses, which is up to Rs.7,000 crore more from last year.
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