Women entrepreneurs were the largest beneficiaries of the scheme with 93,094 loan applications involving Rs 21,200 crore sanctioned.
Credit and Financing for MSMEs: The Modi government’s Standup India scheme, which facilitates bank credit between Rs 10 lakh and Rs 1 crore to programmed castes (SC) or programmed tribes (ST) and female entrepreneurs, has sanctioned Rs 25,586 crore to more than 1,14,322 accounts of loans as of March 23, 2021, since its launch on April 5, 2016, according to the Ministry of Finance. Women entrepreneurs were the largest beneficiaries of the scheme with 93,094 applications involving Rs 21,200 crore sanctioned followed by 16,258 applications with a sanctioned amount of Rs 3,335.87 crore for SC entrepreneurs, and 4,970 applications involving Rs 1,049.72 crore sanctioned to entrepreneurs of ST, the ministry said in a statement Sunday.
The number of accounts and the amount sanctioned has increased by 25.2% and 25%, respectively, compared to last year. As of March 10, 2020, Rs 20,466.94 crore was sanctioned on 91,319 loans, according to data shared by the MoS Finance Ministry in a written response to a question in the Rajya Sabha on March 18, 2020. Following the announcement on The Budget In this year’s speech by Finance Minister Nirmala Sitharaman, the margin money requirement for loans under the Standup India scheme was lowered from as much as 25 percent to as much as 15 percent. In addition, activities related to agriculture were included in the plan. More than 300 lenders have joined the scheme with more than 1.5 lakh branches.
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“The government has taken several steps towards the effective implementation of the Scheme. These, among other things, include the provision for online application submission by prospective borrowers through an online portal, hand-held support, intensive advertising campaign, simplified loan application form, credit guarantee scheme, campaign for the target group through dedicated weekly programs, etc. Thakur had said.
Meanwhile, gross bank credit deployed to micro and small enterprises (MSEs) in December 2020 had risen 6.6 percent to Rs 11.31 lakh crore from Rs 10.61 lakh crore during the prior year period, according to the RBI data. The MSMEs sector accounted for a share of around 18 percent in total credit to industry and around 5 percent in total non-food credit granted by commercial banks registered in November 2020.
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