NEW DELHI: Union finance minister Nirmala Sitharaman on Wednesday said loans worth ₹40,700 crore have been sanctioned to more than 180,000 scheduled caste (SC), scheduled tribes (ST) and women beneficiaries under Stand-Up India (SUPI), the scheme launched seven years ago to promote entrepreneurship at the grassroots level.
“Stand-Up India scheme has proved to be an important milestone in promoting entrepreneurship among SC, ST and women,” she said on SUPI’s seventh anniversary.
The scheme, launched on April 5, 2016, to promote economic empowerment and job creation, has been extended till 2025, the finance ministry said in a statement.
SUPI aims to help the target group in starting a new enterprise in manufacturing, services or the trading sector and activities allied to agriculture.
“The scheme has created an eco-system which facilitates and continues to provide a supportive environment for setting up greenfield enterprises through access to loans from bank branches of all scheduled commercial banks,” the statement said, quoting Sitharaman.
The scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC, ST borrower and at least one woman per branch of scheduled commercial banks. It aims to encourage all branches to extend loans to borrowers from SC, ST and women in setting up their enterprises. It envisages up to 15% margin money, which can be provided in convergence with eligible central or state schemes. The borrower is required to bring in a minimum of 10% of the project cost as own contribution.
The finance minister said the scheme has touched many lives by ensuring access to hassle-free affordable credit to the unserved and underserved segment of entrepreneurs. “Stand-up India scheme is based on the third pillar of National Mission for Financial Inclusion namely ‘Funding the unfunded’. Scheme has ensured availability of seamless credit flow from branches of scheduled commercial banks to SC, ST and women entrepreneurs. Scheme has been instrumental in improving the standards of living for entrepreneurs, their employees and their families,” minister of state for finance Bhagwat Kisanrao Karad said.
Karat added that 80% of loans under this scheme were given to women.
Union education minister Dharmendra Pradhan said in a tweet: “Creating opportunities, fuelling growth and empowering citizens, PM @narendramodi ji’s #StandUpIndia has emerged has a launchpad for nurturing #NewIndia’s entrepreneurial aspirations
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