Cabinet approves continuation of Stand Up India Scheme

• The Union Cabinet approved the continuation of Stand Up India Scheme for a period of five years up to March 31, 2031. 

Key points on Stand Up India Scheme:

• The Stand Up India Scheme was launched on April 5, 2016.

• The scheme aims to promote entrepreneurship among Women, Scheduled Castes (SCs) and Scheduled Tribes (STs) and aims to provide financial assistance to additional 2.5 lakh entrepreneurs in a span of five years. 

• It facilitates loans from Scheduled Commercial Banks (SCBs) of value between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and one woman borrower per bank branch for setting up a greenfield enterprise in the manufacturing, services or trading sector and also for activities allied to agriculture.

• Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh women/SC/ST entrepreneurs.

• Eligible sectors for such loans include manufacturing, services, trading and agri allied activities, and credit guarantee covers 85 per cent of the loan amount with standard guarantee fee of 0.50 per cent.

(The author is a trainer for Civil Services aspirants.)