New Delhi: The government on Wednesday approved the continuation of the Stand-Up India Scheme for the next 5 years to promote entrepreneurship among Women, Scheduled Castes (SCs) and Scheduled Tribes (STs).
The Union Cabinet, headed by Prime Minister Narendra Modi, has approved the extension of the Stand-Up India Scheme up to March 31, 2031.
The scheme aims to promote entrepreneurship among Women, Scheduled Castes and Scheduled Tribes and provide financial assistance to an additional 2.5 lakh entrepreneurs in a span of five years, Information and Broadcasting Minister Ashwini Vaishnaw said while briefing on the decisions taken by the government at the Cabinet meeting.
Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh Women/SC/ST entrepreneurs.
The objective of the Stand-Up India Scheme was to provide loans ranging between Rs 10 lakh and Rs 1 crore from Scheduled Commercial Banks (SCBs) to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch to set up a greenfield enterprise in manufacturing, services or trading sector and also for activities allied to agriculture.
The scheme provided loans of value between Rs 10 lakh and Rs 1 crore at the lowest applicable rate of the bank for that category (rating), not exceeding base rate MCLR+3%+ Tenor premium, with a repayment period of 7 years and a maximum moratorium of up to 18 months.
Eligible sectors for such loans include manufacturing, services, trading and agri-allied activities, and credit guarantee covers 85 per cent of the loan amount with a standard guarantee fee of 0.50 per cent.
The government would ensure credit access for women, SC and ST entrepreneurs, enabling enterprise creation and strengthening entrepreneurship across underserved communities, thereby supporting inclusive economic growth, he said.