Govt Extends Stand-Up India Scheme for 5 Years Till March 2031, Approves Rs 4,111 Crore Credit Guarantee Corpus
The Union Cabinet on Wednesday approved the continuation of the Stand-Up India scheme for five years till March 31, 2031. The Cabinet, spearheaded by Prime Minister Narendra Modi, also approved a credit guarantee corpus of Rs 4,111 crore to support lending under the scheme.
The continuation of the scheme is essentially aimed at improving access to institutional credit for entrepreneurs from underserved communities and supporting the creation of new enterprises.
Target and Progress So Far
The Stand-Up India scheme has set a target of extending financial assistance to at least 250,000 additional entrepreneurs.
Launched in April 2016, the scheme has so far facilitated loans to more than 275,000 women, Scheduled Castes (SCs) and Scheduled Tribes (STs) entrepreneurs so far, according to the government.
The scheme aims to support entrepreneurs from women, Scheduled Castes and Scheduled Tribes categories.
Loan Features
Under the scheme, eligible women and SC/ST entrepreneurs can avail loans ranging from above Rs 10 lakh to Rs 1 crore for setting up greenfield enterprises.
The loans can be structured as composite loans, covering both working capital and term loan requirements, or as term loans, and can cover up to 85 per cent of the project cost.
The scheme covers enterprises across manufacturing, services, trading and agriculture-allied activities.
Under the scheme, the credit guarantee coverage is set at 85 per cent of the loan amount, with a standard guarantee fee of 0.50 per cent.
