Lok Sabha Question No. 2436 (UNSTARRED), answered on 2017-07-31
Subject: Entrepreneur Capital Fund
Ministry: TRIBAL AFFAIRS
Asked by: BHANU PRATAP SINGH VERMA

## GOVERNMENT OF INDIA

## (MINISTRY OF TRIBAL AFFAIRS) LOK SABHA UNSTARRED QUESTION NO. †2436 TO BE ANSWERED ON 31.07.2017

## ENTREPRENEUR CAPITAL FUND

## †2436. SHRI BHANU PRATAP SINGH VERMA:

Will the Minister of TRIBAL AFFAIRS be pleased to state:

(a) the  salient  features  of  the  new  entrepreneur  capital  fund  set  up  for  the  Scheduled Tribes (STs) by the Government recently;

(b) the measures being taken by the Government to ensure success of the said scheme; and

(c) the other measures being taken by the Government to give impetus to entrepreneurship in the STs particularly the ST women?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF TRIBAL AFFAIRS (SHRI JASWANTSINH BHABHOR)

(a) to (b) No such fund has been setup for Scheduled Tribes (STs).

(c) National Scheduled Tribes Finance and Development Corporation (NSTFDC), under the Ministry of Tribal Affairs, implements schemes for self-employment of Scheduled Tribes by  providing  concessional  loan  to  individuals  or  groups  of  STs  for  undertaking  Income Generation  Activities.  This  financial  assistance  is  extended  through  State  Channelising Agencies  and  PSU  Banks/  RRBs  having  refinance  agreements  with  NSTFDC  throughout India for eligible STs upto Double the Poverty Line limit which is ₹98,000/- p.a. for rural areas and ₹1,20,000/- p.a. for urban areas.

The prominent schemes of NSTFDC are:

-  Term Loan scheme: NSTFDC provides Term Loan for any income generation scheme costing upto ₹25.00 lakhs per unit. The financial assistance is extended upto 90% of the cost of the scheme and the balance is met by way of subsidy/ promoter's contribution/ margin money. The interest rate chargeable is 6% p.a. for loan upto ₹ 5 lakhs, 8% p.a. for loans ranging between ₹ 5 lakhs to ₹ 10 lakhs and 10% p.a. for loan exceeding ₹10 lakhs on the entire amount of loan.
-  Adivasi MahilaSashaktikaranYojana (AMSY): Under the scheme, Scheduled Tribes women  can  undertake  any  income  generation  activity.  Loans  upto  90%  for  scheme costing upto ₹1 lakh are provided at a concessional rate of interest of 4% p.a.
-  Micro  Credit  Scheme  for  Self  Help  Groups :  The  Corporation  provides  loans  upto ₹50,000/-  per  member  and  ₹  5  Lakhs  per  Self  Help  Group  (SHG).  The  interest  rate chargeable is 6% p.a.
-  Adivasi ShikshaRrinnYojana : Under this scheme, financial assistance upto ₹5.00 lakh at concessional rate of interest of 6% per annum is provided to ST students for pursuing professional/ technical education including Ph.D. in India. Ministry  of  Human Resources  Development,  Govt.  of  India  provides  interest  subsidy  for  this  scheme, whereby, no interest is payable by a student during the course period and one year or six months after getting the job, as the case may be. There is also a provision for providing further  concessional  finance  for  undertaking  any  income  generation  activity  after completion of studies.
-  Tribal  Forest  Dwellers  Empowerment  Scheme :  Under  the  scheme,  NSTFDC provides  financial  assistance  to  Scheduled  Tribes  given  land  rights  under  Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. Loan upto 90% of the scheme costing upto ₹1 lakh can be provided at rate of interest of 6%  p.a.  This  is  a  new  scheme  introduced  and  NSTFDC  has  requested  the  SCAs  to implement the same.
-  Scheme for NGOs/ EVAs: This  is  a  newly  launched  scheme  under  which  NSTFDC provides loans upto ₹50,000/- per member and ₹ 5 Lakhs per Self Help Group (SHG) through NGOs/ EVAs. The interest rate chargeable is 12% p.a. from members of SHGs against which they will get an interest incentive of 4% on timely payment thus making the effective rate of interest to 8%.

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