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: Stand-Up India Scheme for financing SC/ST and/or Women Entrepreneurs.
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.
