Indian Economy News

NORKA Pravasi Startup Scheme supports 4,179 start-ups in five years

  • IBEF
  • January 12, 2021

In the past five years, the Non-Resident Keralites Affairs (NORKA) Pravasi Startup Scheme has funded 4,179 expatriate entrepreneurs and the Left Government has approved Rs. 220.37 crore (US$ 30.01 million) by "pravasis" who have returned to Kerala for such start-up ventures.

In 2019-20, using the Pravasi Startup Scheme, 1,043 individuals realised their entrepreneurial dreams and Rs. 53.40 crore (US$ 7.27 million) was approved for this.

This scheme is a joint venture between NORKA and the Kerala Startup Mission to generate opportunities for Pravasis to migrate from abroad for self-employment and to begin as entrepreneurs on a new journey locally.

The aim of the scheme is to rehabilitate foreign nationals who, as per their technical skills, can add to the economic development of the state.

Of the 16 banks that offer loans to expatriates, Kerala Bank, Canara Bank, and the Travancore Pravasi Development Co-operative Society are just a few.

Loans up to Rs. 30 lakh (US$ 40.85 thousand) with a 15% capital subsidy, subject to a limit of Rs. 3 lakh (US$ 4.09 thousand), are eligible for start-ups from expats who have migrated to Kerala for at least two years after working overseas and have now settled locally.

The scheme also includes a 3% interest refund for those who repay the interest on time for the first four years, the government said.

NORKA has extended its field camps to cover more individuals, to make credit processes simpler and to process credit in a single day.

in 2019-20  seven camps were conducted and around 500 pravasis have benefited from this.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.