Credit and Finance for MSMEs: The Modi government’s Standup India scheme, which facilitates loans to scheduled caste or scheduled tribe and girls entrepreneurs for setting up greenfield enterprises, has grown 21.3 per cent in the quantity of loan applications sanctioned by lending institutions and 21.1 per cent in the quantity sanctioned in the previous practically 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 have been sanctioned so far, according to the Standup India information as of February 10, 2021.
The total quantity 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 information in a written reply to a query in the Rajya Sabha final 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 lady borrower per bank branch of scheduled industrial banks for setting up their firms in the manufacturing, services, or trading sectors. The scheme has so far onboarded 327 lenders. Till March 2020, the states with the highest quantity of accounts and quantity sanctioned have been 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 study: E-commerce worth development remains flat in Q4 2020 amid surge in little-town purchasers, low-value goods
Among the most significant beneficiary of the Standup India scheme have been girls entrepreneurs accounting for more than 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), girls entrepreneurs cornered 70 per cent share of total borrowers. Out of more than Rs 22.53 crore loans sanctioned till January 31, 2020, more than Rs 15.75 crore loans have been extended to girls, according to the Finance Ministry statement final year. PMMY presents up to Rs 10 lakh loans to the non-corporate, non-farm little/micro enterprises classified as Mudra loans offered by industrial banks, regional rural banks, little finance banks, microfinance institutions, and non-banking economic businesses.