Cabinet Approves Continuation of Stand-Up India Scheme

Key Highlights:

• The Union Cabinet approved the continuation of the Stand-Up India Scheme for a period of 5 years, until March 31, 2031.
• The scheme aims to promote entrepreneurship among Women, Scheduled Castes (SCs), and Scheduled Tribes (STs).
• It targets providing financial assistance to an additional 2.5 lakh entrepreneurs over the next five years.
• Since its launch in April 2016, the scheme has facilitated loans to over 2.75 lakh Women/SC/ST entrepreneurs.

Detailed Insights:

• The scheme supports eligible borrowers in setting up new or greenfield enterprises.
• Loans can be composite (working capital and term loan) or term loans, ranging from ₹10 lakh to ₹1 crore.
• The financial assistance can cover up to 85% of the project cost for eligible enterprises.
• It extends to sectors including Manufacturing, Services, Trading, and Agri-allied activities.
• The scheme provides credit guarantee coverage of 85% of the loan amount, with a standard guarantee fee of 0.50%.
• Its continuation is expected to enhance credit access for underserved communities, fostering enterprise creation and inclusive economic growth.

Key Concepts Involved:

• Greenfield enterprise: A new project built from scratch on an undeveloped site, without prior work.
• Credit Guarantee Scheme: A mechanism where a third party (government/agency) guarantees a loan, reducing risk for lenders.