New Delhi [India], November 11 (ANI): The Union Cabinet on Wednesday approved the continuation of the Stand-Up India Scheme for another five years to help women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs start new businesses.
The scheme has been extended till March 31, 2031, with a credit guarantee corpus of Rs 4,111 crore and aims to provide financial assistance to at least 2.5 lakh additional entrepreneurs over the next five years.
Announcing the decision during the Cabinet briefing, Union Minister Ashwini Vaishnaw said, “The programme was designed to help SC, ST and women entrepreneurs start their own businesses. It has been very successful, which is why its continuation for another five years was approved today.”
Under the scheme, eligible entrepreneurs can avail loans of above Rs 10 lakh and up to Rs 1 crore for setting up new businesses in manufacturing, services, trading and agriculture-allied activities.
Vaishnaw said, “The guarantee fee has been standardised at 0.5 per cent, with no additional risk premium. The guarantee will cover 85 per cent of the loan amount so that entrepreneurs can take their businesses forward.”
According to the official release, loans under the scheme can be provided as term loans or a combination of term loans and working capital, covering up to 85 per cent of the project cost.
The government has also approved credit guarantee coverage of 85 per cent of the loan amount to reduce the risk faced by lending institutions.
The Cabinet briefing document stated that the scheme targets an average of two loans per bank branch, including one to a woman entrepreneur and another to an SC/ST entrepreneur.
The scheme also provides support to entrepreneurs during the loan application process and subsequent stages of business development.
Launched in April 2016, the Stand-Up India Scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs so far, according to the government.
The government said the five-year extension would help improve access to credit for entrepreneurs from underserved communities, support the creation of new enterprises and generate employment opportunities. (ANI)
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