Stand Up India scheme

In news– Stand Up India Scheme has been extended up to the year 2025.

About the scheme-

It was launched by the Prime Minister on 05th April, 2016.
The Scheme facilitates loans to Scheduled Caste, Scheduled Tribe and women borrowers.
The objective is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
This enterprise may be in manufacturing, services, agri-allied activities or the trading sector.
In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
SC/ST and/or woman entrepreneurs should be above 18 years of age.
Loans under the scheme are available for only green field projects.
Green field in this context signifies the first time venture of the beneficiary in the manufacturing, services, agri-allied activities or the trading sector.
Borrower should not be in default to any bank/financial institution.
The loan is repayable in 7 years with a maximum moratorium period of 18 months.
The Scheme envisages 15% margin money which can be provided in convergence with eligible Central / State schemes.
Government does not allocate funds for loans.
Loans under the Scheme are extended by Scheduled Commercial Banks (SCBs) and a corpus of Credit Guarantee Fund for Stand Up India (CGFSI) is maintained.