Stand-Up India Scheme Extended Till 2031: 2.5 Lakh Entrepreneurs To Get Loan Support
New Delhi, Nov 11: The Union Cabinet on Wednesday approved a five-year extension of the Stand-Up India Scheme, continuing the programme until March 31, 2031, with the objective of promoting entrepreneurship among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs).
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The extended scheme is expected to provide financial assistance to an additional 2.5 lakh entrepreneurs over the next five years. The Cabinet has also approved a credit guarantee corpus of Rs 4,111 crore to strengthen the programme’s lending support.
Launched in April 2016, the initiative has so far facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, helping them establish new businesses and expand their economic activities, according to the government.
Loans Of Up To Rs 1 Crore For New Businesses
Under the scheme, eligible beneficiaries can access loans ranging from Rs 10 lakh to Rs 1 crore to establish greenfield enterprises, or businesses set up for the first time in a particular sector.
The financial assistance is offered through composite loans, combining working capital and term loans, or through standalone term loans. The loan amount can cover up to 85 per cent of the total project cost, subject to the scheme’s eligibility conditions.
The programme covers several sectors, including manufacturing, services, trading and allied agricultural activities, offering aspiring entrepreneurs opportunities to establish businesses across different areas.
Credit Guarantee Support To Improve Access
To encourage banks and financial institutions to extend credit to eligible entrepreneurs, the scheme provides credit guarantee coverage of up to 85 per cent of the loan amount. The standard guarantee fee has been fixed at 0.50 per cent.
The government expects the continuation of the programme to improve access to institutional finance for entrepreneurs from underserved communities and encourage the creation of new enterprises.
With the extension, the Centre aims to build on the progress made since 2016 and widen opportunities for women, SC and ST entrepreneurs to participate in India’s economic growth.