The Hindu Business Line : New scheme to help women entrepreneurs in AP

WOMEN entrepreneurs have some good news. Very soon, a new scheme that is claimed to be more `friendly', will bring in the much needed financial support to launch bold projects.

A woman's organisation, a national bank, credit guarantee fund and the SIDBI have come together to float the Mutual Credit Guarantee Fund Scheme, which will be formally unveiled in Andhra Pradesh by the State Minister for Major Industries, Mr B. Satyanarayana, on October 14.

The ALEAP Credit Guarantee Association (ACGA), an undertaking of the Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP), is entering into an agreement with Andhra Bank and the Credit Guarantee Fund Trust for Small Industries (CGTSI), a Central Government Trust with the Small Industries Development Bank of India (SIDBI), to implement the scheme.

The scheme would provide financial support through banks to the small-scale industries (SSIs) units run by women entrepreneurs by providing necessary guarantees for its members.

The concept of the scheme on the lines of Italian model suitably adapted to Indians conditions would help improve credit flow to the SSI sectors as also the comfort level of the lenders, said a press release from ALEAP.

The Centre and SIDBI set up the CGSTI to extend guarantees to the eligible lending institutions for their credit extended to SSIs without collaterals. The CGSTI wrote to over 40 industry associations serving SSI clusters, giving details of the scheme.

Three associations — the ALEAP, the Karnataka Small Scale Industries Association and the Tirupur Exporters Association — evinced keen interest in trying out the concept.

The ACGA has been established as a separate entity under Section 25 of the Companies Act by ALEAP to operate the scheme. A separate screening committee will look into credit proposals of members, before being sent to bankers and will also stand guarantee for their borrowings from the banker. ACGA will closely monitor the accounts and keep bankers informed on the status.

The President of ALEAP, Ms K. Ramadevi, said the ACGA will create a corpus fund and guarantee repayment of loans on behalf of the borrower.

More Stories on : Gender | Entrepreneurship | Andhra Pradesh

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