IBNS-CMEDIA: The Indian Cabinet has approved the continuation of the Stand-Up India Scheme for another five years, until March 31, 2031, to promote entrepreneurship among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs).
The scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs over the next five years.
Since its launch in April 2016, the Stand-Up India Scheme has facilitated loans to more than 2.75 lakh women and SC/ST entrepreneurs.
Key Features of the Stand-Up India Scheme
1. Eligible Borrowers: Women entrepreneurs and entrepreneurs belonging to Scheduled Castes (SCs) and Scheduled Tribes (STs) seeking to establish new or greenfield enterprises.
2. Loan Amount: Eligible borrowers can avail of composite loans (covering working capital and term loans) or term loans ranging from above Rs 10 lakh to Rs 1 crore, covering up to 85 per cent of the project cost.
3. Eligible Sectors: Manufacturing, services, trading and agriculture-allied activities.
4. Credit Guarantee Coverage: Credit guarantee coverage of 85 per cent of the loan amount.
5. Guarantee Fee: A standard guarantee fee of 0.50 per cent.
