Stand Up India: Over 23,000 Loans Sanctioned Under Government Pet Scheme for Women and SC/ST Entrepreneurs in FY22
Credit and financing for MSMEs: Over 23,000 crore loan applications involving around Rs 5,000 crore were sanctioned in the financial year 2021-22 to women and SC/ST entrepreneurs under the government’s Stand Up India scheme. According to data from Standup Mitra portal and Department of Financial Services (Ministry of Finance), nearly 1.35 lakh claims amounting to around Rs 30,200 crore have been sanctioned as of March 31, 2022, compared to more than 1.11 lakh claims involving Rs 25,000 crore sanctioned in 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 for starting new businesses. Credit ranges from Rs 10 lakh to Rs 1 crore to at least one SC/ST borrower and at least one female borrower per bank branch of regular commercial banks.
However, the majority of beneficiaries of this program have been women-owned businesses. Finance Minister Nirmala Sitharaman, in a tweet to commemorate the sixth anniversary of the scheme in April, had said around 81% of loan accounts were owned by women, with amounts sanctioned amounting to almost Rs 21,000 crore . Till March 21, 2022, Rs 30,160 crore was sanctioned for 133,995 entrepreneurs, of which Rs 24,809.89 crore was sanctioned for 1,08,250 female entrepreneurs, while Rs 3,976.84 crore was sanctioned for 19,310 SC borrowers and Rs 1,373.71 crore for ST borrowers.
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As of May 8, 2022, the total number of claims had risen to 1.35 lakh involving Rs 30,511 crore. The program has a total of 80 lenders on board. The total number of applications received since the start of the program was almost 1.55 lakh, according to the latest data.
The estimated total credit gap between the very small women-owned businesses (WVSE) stands at Rs 83,600 crore, according to a report by the International Finance Corporation (IFC) and Intellecap – the advisory arm of the firm. impact investing Aavishkaar Group had said in March this year. The current number of such women-led units is around 15 million who face challenges such as insufficient access to capital, technology and information, and infrastructure gaps.