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What is the News?
The Ministry of Finance has informed Lok Sabha that the Stand Up India Scheme has been extended up to the year 2025.
About Stand Up India Scheme:
- The Stand Up India Scheme was launched in 2016 by the Department of Financial Services, Ministry of Finance.
- Objective: The 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).
- Repayable of Loan: The loan is repayable in 7 years, with a maximum moratorium period of 18 months.
Eligibility Condition for Loans under Stand Up India Scheme:
- Beneficiaries should be 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.
Changes made in the Scheme:
- Margin money requirement for loans under the Scheme has been reduced from ‘upto 25%’ to `upto 15%’.
- Activities allied to agriculture have been included in the Scheme.
Performance of the Scheme:
- Banks have sanctioned Rs 26,204 crore to about 1,16,266 beneficiaries under the Scheme in the last five years.
- The scheme has benefited more than 93,094 women entrepreneurs.