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.