Cabinet nod for two credit guarantee funds

The Union Cabinet approved setting up of two credit guarantee funds — one for loans disbursed under the Pradhan Mantri Micro Units Development Refinance Agency (MUDRA) Yojana, and the other will be to support the ‘Stand-Up india’ campaign launched to assist scheduled castes and scheduled tribes (SC/ST) and women entrepreneurs in setting up a business.

The MUDRA scheme is expected to benefit 1.73 crore people, Finance Minister Arun Jaitley said at a press briefing after the Cabinet decision. The initial corpus for MUDRA yojana would be Rs 3,000 crore.

Jaitley said that the initial corpus for MUDRA yojana would be Rs 3,000 crore. The ‘Start up India Stand up India’ initiative was announced by PM Narendra Modi in his address to the nation on August 15, 2015. Stand Up India scheme will be launched along with Start up India scheme on January 16. It will be implemented through 1.25 lakh bank branches.

According to the statement the MUDRA (SIDBI) Bank will undertake refinance operations and provide support services with focus on portal management; data analysis and other activities as specified by the government.

Under the Stand-Up India fund, all Indian banks will be required to fund at least two entrepreneurs, one from each category, Jaitley said, adding that the funding limit for Greenfield projects has been set at Rs 10 lakh to a crore.

 

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