PM Modi’s Standup India scheme: Loans to micro entrepreneurs increase 60% in two years

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Published: March 18, 2020 6:38:16 PM

Credit and Finance for MSMEs: The stand-up India scheme facilitates loans 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

The biggest beneficiary of Standup India so far has been women entrepreneurs.

Credit and Finance for MSMEs: The number of aspiring entrepreneurs belonging to the scheduled caste or scheduled tribe (SC/ST) and women entrepreneurs supported under the Standup India scheme launched by PM Modi has grown by 60 per cent in the past two years. The total number of loans extended since its launch on April 5, 2017, till March 7, 2018, was 55,342. This increased to 91,319 till March 10, 2020, according to the data shared by the Ministry of Finance MoS in a written reply to a question in the Rajya Sabha on Tuesday. The amount sanctioned for these accounts stood at Rs 20,466.94 crore since the beginning of the scheme.

The stand-up India scheme facilitates loans 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. Leading states with maximum 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: These many MSMEs benefited from RBI’s loan restructuring; amount involved crosses Rs 22,000 crore

Importantly, the biggest beneficiary of Standup India so far has been women entrepreneurs as more than 81 per cent account holders are women as on February 17, 2020, according to the Ministry of Finance. Women entrepreneurs had 73,155 accounts for whom Rs 16712.72 crore has been sanctioned out of which Rs 9106.13 crore has been disbursed for setting up “greenfield enterprise.”

SC/ST and women-led micro and small businesses are also able to sell their goods and services to government departments and organisations, monitored via the MSME Sambandh portal. While the share of women-owned MSEs in the overall MSE public procurement has increased from 0.15 per cent worth Rs 231.61 crore in FY19 to 0.26 per cent worth Rs 302.46 crore in the FY20 so far, the share of SC/ST-owned MSE had dropped to 0.49 per cent worth Rs 561.85 crore in FY20 so far from 0.54 per cent worth Rs823.97 crore, as per the data available on the Sambandh portal.

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