(MENAFN- KNN India)
New Delhi, Aug 20 (KNN)
The Stand Up India scheme, a government initiative aimed at fostering entrepreneurship among scheduled castes, scheduled tribes, and women, has reported stagnant growth in loan sanctions for the fiscal year 2023-24, according to official data recently presented in the Lok Sabha.
Minister of State in the Finance Ministry, Pankaj Chaudhary, revealed that 39,643 loans were sanctioned in FY24, marginally lower than the 39,907 loans sanctioned in FY23.
This figure, however, represents a significant 100 per cent increase from the 19,749 loans sanctioned in FY22.
Despite the flat growth in sanctions, the scheme witnessed a decline in loan disbursements.
In FY24, 17,374 loans were disbursed, marking a 12 per cent decrease from 19,872 in FY23. For comparison, 12,259 loans were disbursed in FY22.
Launched in 2016, Stand Up India facilitates credit ranging from Rs 10 lakh to Rs 1 crore for first-time ventures in manufacturing, services, agri-allied activities, or the trading sector.
The scheme mandates that each bank branch provide loans to at least one SC or ST borrower and one woman borrower.
As per the scheme's website, a total of Rs 62,390 crore in loans has been sanctioned to date, with Rs 54,972 crore disbursed. The initiative currently has 80 lenders participating.
Beyond financial support, the scheme offers comprehensive assistance to entrepreneurs, including connections to skilling centres, mentorship programs, and district industries centres.
Loans under Stand Up India are offered at competitive rates, calculated as the bank's base rate (Marginal Cost of Funds based Lending Rate) plus 3 per cent and a tenor premium.
The repayment period extends to seven years, with a maximum moratorium of 18 months.
In a related development, the MSME Ministry launched the Yashasvini campaign in June 2024, aiming to support 100,000 women entrepreneurs in smaller cities through capacity building, training, and mentoring programs.
(KNN Bureau)
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