New Delhi. The Central Government has given great relief to the women of the country and people of Scheduled Caste (SC), Scheduled Tribe (ST) category to start their own business. In the cabinet meeting chaired by Prime Minister Narendra Modi, approval has been given to continue the Stand-up India scheme till 31 March 2031. Also, a credit guarantee fund of Rs 4,111 crore has also been approved for the scheme. This will provide financial help to new entrepreneurs in setting up their business.
The objective of this initiative of the government is to give an opportunity to those people who have a good idea to start a business, but due to lack of money, they are not able to fulfill their dream. The scheme aims to reach at least 2.5 lakh new beneficiaries in the next five years.
Loan up to Rs 1 crore will be available to start business
Under Stand-up India Scheme, eligible women and SC-ST entrepreneurs can get loans ranging from Rs 10 lakh to Rs 1 crore from the bank to start a new business. This financial assistance is given to greenfield i.e. enterprises being started for the first time. This may include activities related to manufacturing, service, trading and agriculture.
There is a provision in the scheme to provide credit guarantee cover up to 85 percent of the loan amount. This helps banks to give loans to eligible applicants. However, this does not mean that the government directly gives 85 percent of the loan amount.
How will women and SC-ST category benefit?
To avail the benefits of this scheme, the applicant must be a woman or from Scheduled Caste or Scheduled Tribe category. At least 51 percent stake and control in non-individual business must be held by an eligible woman or SC-ST entrepreneur.
How to apply?
Interested applicants can get information about the scheme by visiting the official website of Stand-Up India Portal. Apart from this, information about the application process and necessary documents can also be obtained by contacting the nearest bank branch. With this decision of the government, new entrepreneurs from women and SC-ST category will get an opportunity to start their own business and become financially self-reliant.