The correct answer is D. Seed Capital Assistance Scheme.
The Seed Capital Assistance Scheme (SCAS) is a scheme operated by the Industrial Development Bank of India (IDBI) to provide financial assistance to small and new entrepreneurs. The scheme is designed to supplement the equity contribution to projects made by these entrepreneurs. The objective of the scheme is to encourage newer classes of entrepreneurs and bring about wider dispersal of ownership and control of industrial undertakings.
The SCAS is a non-recourse loan scheme, which means that the borrower is not required to repay the loan if the project fails. The loan amount is typically up to Rs. 1 crore, and the repayment period is up to 7 years. The interest rate on the loan is 10% per annum.
To be eligible for the SCAS, the entrepreneur must be a first-time entrepreneur and must have a minimum net worth of Rs. 5 lakh. The project must be in the manufacturing sector and must have a minimum investment of Rs. 10 lakh. The project must also have the potential for generating employment.
The SCAS is a very useful scheme for small and new entrepreneurs who are looking for financial assistance to start their businesses. The scheme is designed to help these entrepreneurs overcome the challenge of raising equity capital. The non-recourse nature of the loan and the long repayment period make the scheme very attractive to entrepreneurs.
The other options are not correct because they are not schemes operated by IDBI to provide financial assistance to small and new entrepreneurs.
- Bridge Loan Scheme: This scheme is operated by IDBI to provide short-term loans to companies that need to bridge the gap between the completion of a project and the receipt of payment from the customer.
- Soft Loan Scheme for Modernisation: This scheme is operated by IDBI to provide loans at concessional rates to companies that want to modernize their plants and equipment.
- Technical Development Fund Scheme: This scheme is operated by IDBI to provide financial assistance to companies that want to undertake research and development activities.