Finance Ministry to push state-run banks in supporting budding entrepreneurs

The finance ministry of India may push state-run banks to look beyond financing flagship schemes, Start up India & Stand up India and help budding entrepreneurs by providing financial management services and guiding them on other aspects of business.

Under the soon to be launched 'Stand up India Scheme', Indian government wants to achieve its target of at least 2.5 lakh approvals in three years. The scheme also aims to facilitate at least two projects per bank branch, which would, on an average, be one for each category of entrepreneur.

The Stand up India scheme looks forward to promoting entrepreneurship among SC, ST, and women entrepreneurs. As per the scheme, these entrepreneurs would get bank loans repayable up to seven years and between Rs 10 lakh and Rs 100 lakh for greenfield enterprises in the non-farm sector.

"State Bank of India (SBI) has already taken the lead and we expect other banks to follow suit," a finance ministry official told ET, also adding that banks can create an ecosystem for new ventures so that they can get expertise in other areas.

State Bank of India (SBI) has already taken a lead and launched its first start-up focused bank branch in Bengaluru. The branch, SBI InCube, will offer advisory services to budding entrepreneurs under one roof.

"The bank would love to give entrepreneurs loans when they turn more mature," said SBI Chairman Arundhati Bhattacharya while launching the branch. She also added that this branch was opened for entrepreneurs to come and discuss the requirements for setting up a company, get their current accounts opened, and understand concepts like a company's articles of association.

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