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The Union Cabinet on Wednesday approved the continuation of the Stand-Up India scheme for five years till March 31, 2031. The Cabinet, chaired by Prime Minister Narendra Modi, also approved a credit guarantee corpus of ₹4,111 crore to support lending under the scheme.
The Stand-Up India scheme has set a target of extending financial assistance to at least 2.5 lakh additional entrepreneurs from among women, Scheduled Castes (SCs) and Scheduled Tribes (STs). Launched in April 2016, the scheme has so far facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, according to the government.
Under the scheme, eligible women and SC/ST entrepreneurs can avail themselves of loans ranging from above ₹10 lakh to ₹1 crore for setting up greenfield enterprises. The loans can be structured as composite loans, covering both working capital and term loan requirements, or as term loans, and can cover up to 85 per cent of the project cost.
The scheme covers enterprises across manufacturing, services, trading and agriculture-allied activities. Under the scheme, the credit guarantee coverage is set at 85 per cent of the loan amount, with a standard guarantee fee of 0.50 per cent.
The continuation of the scheme is aimed at improving access to institutional credit for entrepreneurs from underserved communities and supporting the creation of new enterprises. The government noted that the scheme would help strengthen entrepreneurship among women and members of SC and ST communities while supporting inclusive economic growth.
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