PM Modi’s Standup India: Loans to SC/ST, women entrepreneurs jump 21%; sanctioned amount nears Rs 25k cr

By: |
Updated: Feb 10, 2021 4:06 PM

Credit and Finance for MSMEs: The scheme was launched to facilitate credit from Rs 10 lakh to Rs 1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch of scheduled commercial banks for setting up their businesses in the manufacturing, services, or trading sectors.

The biggest beneficiary of the Standup India scheme were women entrepreneurs accounting for over 81 per cent of account holders as of February 17, 2020. Image: IE (Representative image)

Credit and Finance for MSMEs: The Modi government’s Standup India scheme, which facilitates loans to scheduled caste or scheduled tribe and women entrepreneurs for setting up greenfield enterprises, has grown 21.3 per cent in the number of loan applications sanctioned by lending institutions and 21.1 per cent in the amount sanctioned in the past nearly 12 months. Launched on April 5, 2016, by Prime Minister Narendra Modi and subsequently extended up to 2025, the scheme has received 1,28,377 applications out of which 1,10,813 applications involving Rs 24,803.85 crore were sanctioned so far, according to the Standup India data as of February 10, 2021.

The total number of loans extended till March 10, 2020 stood at 91,319 involving Rs 20,466.94 crore, Ministry of Finance MoS Anurag Thakur had shared data in a written reply to a question in the Rajya Sabha last year. The scheme was launched to facilitate credit from Rs 10 lakh to Rs 1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch of scheduled commercial banks for setting up their businesses in the manufacturing, services, or trading sectors. The scheme has so far onboarded 327 lenders. Till March 2020, the states with the highest number of accounts and amount sanctioned were Andhra Pradesh in which Rs 1,284.11 crore was sanctioned across 5,313 accounts. Similarly, 6,292 entrepreneurs in Gujarat secured Rs 1,837.7 crore in loan, Uttar Pradesh saw 11,455 entrepreneurs raising Rs 2,317.89 crore, Maharashtra had 6,834 accounts and Rs 1,577.05 crore sanctioned in loan.

Also read: E-commerce value growth remains flat in Q4 2020 amid surge in small-town buyers, low-value goods

Among the biggest beneficiary of the Standup India scheme were women entrepreneurs accounting for over 81 per cent of account holders as of February 17, 2020, according to the Ministry of Finance. Women entrepreneurs had 73,155 accounts for whom Rs 16712.72 crore was sanctioned and Rs 9106.13 crore was disbursed. Likewise, for the Pradhan Mantri Mudra Yojna (PMMY), women entrepreneurs cornered 70 per cent share of total borrowers. Out of more than Rs 22.53 crore loans sanctioned till January 31, 2020, over Rs 15.75 crore loans were extended to women, according to the Finance Ministry statement last year. PMMY offers up to Rs 10 lakh loans to the non-corporate, non-farm small/micro enterprises classified as Mudra loans given by commercial banks, regional rural banks, small finance banks, microfinance institutions, and non-banking financial companies.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Honeywell to take affordable automation to SMEs
2SIDBI expands state-wise MSME programme to Andhra Pradesh; these benefits for small businesses on anvil
3GeM: Share of MSE sellers on Amazon of govt buying more than doubles in 12 months; total MSE count up 7X