What is the News?
The government has informed the Lok Sabha about the implementation of the Stand Up India Scheme. More than 81% of the accounts under the Stand Up India Scheme belong to women entrepreneurs.
About Stand Up India Scheme:
- Ministry: Launched in 2016 by the Department of Financial Services, Ministry of Finance.
- Objective: The Stand-Up India Scheme facilitates bank loans for setting up a new enterprise in manufacturing, services, agri-allied activities, or the trading sector by SC/ST/Women entrepreneurs.
- Bank Loan: It provides bank loans between Rs 10 lakh and up to 1 crore.
- The government does not allocate funds for loans under the Scheme. They are extended by Scheduled Commercial Banks(SCBs).
- Eligibility condition for Stand Up India Scheme:
- SC/ST and/or woman entrepreneurs above 18 years of age.
- Loans under the scheme are available only for greenfield projects. Greenfield signifies the first time venture of the beneficiary in the manufacturing, services, agri-allied activities or the trading sector.
- In the case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrowers should not be in default to any bank/financial institution.
- Repayment: The loan is repayable in 7 years with a maximum moratorium period of 18 months.
- Duration of the Scheme: The Stand-Up India Scheme has been extended up to the year 2025.