New Delhi: The Union Cabinet on Wednesday approved the continuation of the Stand-Up India Scheme for another five years till March 31, 2031, with approval for credit guarantee corpus of Rs 4,111 crore, with the aim of expanding entrepreneurship among women, Scheduled Castes (SCs) and Scheduled Tribes (STs).
The scheme is expected to provide financial assistance to an additional 2.5 lakh entrepreneurs over the next five years. Since its launch in April 2016, the initiative has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, helping them establish new enterprises and expand economic opportunities, according to the official statement.
“The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved thecontinuation of Stand-Up India Scheme for a period of 5 years upto 31.03.2031,” it said.
“The scheme aims to promote entrepreneurship among Women, Scheduled Castes (SCs) and Scheduled Tribes (STs) and aims to provide financial assistance to additional 2.5 lakh entrepreneurs in a span of five years. Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh Women/SC/ST entrepreneurs,” it added.
Under the scheme, eligible beneficiaries can avail loans ranging from Rs 10 lakh to Rs 1 crore for setting up new greenfield enterprises.
The support is available in the form of composite loans, which combine working capital and term loans, or as standalone term loans. Financial assistance can cover up to 85 per cent of the project cost.
“The loan can be in the form of either Composite (Working Capital and Term Loan) or Term loan for amounts above Rs10 lakh and upto Rs 1 crore (upto 85 per cent of the project cost),” it mentioned.
The scheme covers a wide range of sectors, including manufacturing, services, trading and allied agricultural activities, enabling entrepreneurs from underserved communities to participate in diverse areas of economic activity.
To improve access to institutional credit, the scheme provides credit guarantee coverage of up to 85 per cent of the loan amount, while the standard guarantee fee has been fixed at 0.50 per cent.
The government said the continuation of the programme is expected to further strengthen entrepreneurship among women, SCs and STs by improving access to formal credit and supporting the creation of new enterprises.
(IANS)
