New Delhi, Nov. 11: The Union Cabinet on Wednesday approved the extension of the Stand-Up India Scheme until March 31, 2031. The initiative aims to support another 2.5 lakh entrepreneurs over the next five years.
The scheme will have a credit guarantee corpus of Rs 4,111 crore. It seeks to expand entrepreneurship among women, Scheduled Castes (SCs) and Scheduled Tribes (STs).
Since its launch in April 2016, the programme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs. It has supported the establishment of new enterprises and expanded economic opportunities.
Stand-Up India Scheme Offers Loans Up to Rs 1 Crore
Under the scheme, eligible beneficiaries can obtain loans ranging from Rs 10 lakh to Rs 1 crore. The loans support the establishment of new greenfield enterprises.
Financial assistance is available through composite loans covering working capital and term loans. Applicants can also opt for standalone term loans.
The scheme can finance up to 85 per cent of the project cost. It covers manufacturing, services, trading and allied agricultural activities.
To improve access to institutional credit, the programme 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 said the extension would strengthen entrepreneurship among women, SCs and STs. It is also expected to improve access to formal credit and encourage new enterprise creation.
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