Stand-Up India, launched in 2016, encourages banks to extend loans to marginalised communities to help them set up their own greenfield enterprises
INR 5,625 Cr sanctioned to 26,889 accounts belonging to SC entrepreneurs, while INR 1,932 Cr allocated to 8,960 ST entrepreneurs: Finance ministry
More than 80% of loans disbursed to women under the scheme
The Centre on Wednesday (April 5) said that loans worth INR 40,710 Cr have been sanctioned to 1.8 Lakh entrepreneurs under its Stand-Up India scheme in seven years.
Launched in 2016, the scheme encourages banks to extend loans to marginalised communities to help them set up their own greenfield enterprises.
“It is a matter of pride and satisfaction for me to note that more than 1.8 Lakh women and SC/ST entrepreneurs have been sanctioned loans for more than INR 40,600 Cr,” Finance Minister Nirmala Sitharaman said while addressing an event to commemorate the seventh anniversary of the launch of the scheme.
The FM also said that the Stand-Up India scheme has created an ecosystem to facilitate access to loans for members of scheduled castes, scheduled tribes and women. This, she said, has given wings to aspiring entrepreneurs to drive the country’s growth and job creation.
Speaking alongside, Minister of State (MoS) for Finance Bhagwat Kisanrao Karad said that more than 80% of loans under the scheme have been disbursed to women.
Giving a breakdown of the data, the finance ministry, in a release, said that more than INR 5,625 Cr has been sanctioned to 26,889 accounts belonging to SC entrepreneurs. On the other hand, loans worth INR 1,932 Cr have been sanctioned for 8,960 ST entrepreneurs while an amount of INR 33,152.43 Cr has gone to 1,44,787 women founders under the scheme so far.
Launched under the aegis of the Ministry of Finance, Stand-Up India helps entrepreneurs from marginalised communities get bank loans in the range of INR 10 Lakh to INR 1 Cr. The scheme also offers other support to founders to tide over various issues in setting up their own greenfield enterprises.
Besides, the ministry also operates the Stand-Up Mitra portal to help these entrepreneurs leverage the network of over 8,000 hand-holding agencies. The portal also allows the founders to connect with various agencies for mentorship, fundraising and upskilling to further scale their ventures.
The Centre has been on an overdrive over the last few years to promote startups through various measures like the launch of the Startup India scheme and the fund of funds for startups.
The effort has borne fruit. From just 452 DPIIT-recognised startups in 2016, the number soared to 84,012 in December 2022. The country is currently home to 108 unicorns.
However, the Indian startup ecosystem is currently reeling under the effects of the funding winter. As per Ind42 data, Indian startups raised a total of $3 Bn in the first quarter of 2023, witnessing a decline of 75% from $12 Bn raised a year ago.
