Credit and Finance for MSMEs: Launched by Prime Minister Narendra Modi on April 5, 2016, Stand Up India offers credit support to women and SC/ST entrepreneurs in setting up greenfield enterprises. However, the majority beneficiaries have been women-owned enterprises.
Credit and Finance for MSMEs: Over 23,000 crore loan applications involving around Rs 5,000 crore were sanctioned during the financial year 2021-22 to women and SC/ST entrepreneurs under the government’s Stand Up India scheme. According to the data from the Standup Mitra portal and the Department of Financial Services (Finance Ministry), close to 1.35 lakh applications amounting to around Rs 30,200 crore were sanctioned as of March 31, 2022, in comparison to over 1.11 lakh applications involving Rs 25,000 crore sanctioned as of March last year.
Launched by Prime Minister Narendra Modi on April 5, 2016, Stand Up India offers credit support to women and SC/ST entrepreneurs in setting up greenfield enterprises. The credit ranges 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.
However, the majority beneficiaries of the scheme have been women-owned enterprises. Finance Minister Nirmala Sitharaman in a tweet to commemorate the sixth anniversary of the scheme in April had said around 81 per cent of the loan accounts belonged to women, with sanctioned amounts standing at nearly Rs 21,000 crore. Till March 21, 2022, Rs 30,160 crore was sanctioned to 133,995 entrepreneurs, of which Rs 24,809.89 crore was sanctioned to 1,08,250 women entrepreneurs, while Rs 3,976.84 crore was sanctioned to 19,310 SC borrowers, and Rs 1,373.71 crore to ST borrowers.
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As of May 8, 2022, the total applications had increased to 1.35 lakh involving Rs 30,511 crore. The scheme has overall 80 lenders onboard. The total applications received since the beginning of the scheme were nearly 1.55 lakh, according to the latest data.
The total estimated credit gap among women-owned very small businesses (WVSEs) is worth Rs 83,600 crore, a report by International Finance Corporation (IFC) and Intellecap – the advisory arm of impact investment firm Aavishkaar Group had said in March this year. The current count of such women-led units is around 15 million that face challenges such as inadequate access to capital, technology and information, and infrastructure gaps.