ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 26th June. Click Here for more information.
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.
Source: PIB
