Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the continuation of the Stand-Up India scheme for a period of five years until March 31, 2031. This scheme, launched in April 2016, aims to promote entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST) by facilitating credit access for setting up greenfield enterprises. The extension targets providing financial assistance to an additional 2.5 lakh entrepreneurs over the next five years, building upon the 2.75 lakh beneficiaries already supported since its inception. The scheme offers composite loans or term loans ranging from over Rs. 10 lakh to Rs. 1 crore, covering up to 85 percent of the project cost, for eligible sectors including manufacturing, services, trading, and agriculture-allied activities, backed by an approved credit guarantee fund of Rs. 4,111 crore with 85 percent loan guarantee coverage and a standard guarantee fee of 0.50 percent.
For Banking, SSC, and RBI Grade B aspirants, this development is crucial for understanding government initiatives in financial inclusion and economic empowerment. Questions may arise regarding the scheme’s objectives, target beneficiaries (women, SC, ST entrepreneurs), the financial assistance provided (loan range, percentage of project cost covered), and the extended duration of the scheme (until March 31, 2031). Furthermore, the approval of a Rs. 4,111 crore credit guarantee fund and the 85 percent loan guarantee coverage are significant details for banking awareness and economic policy sections, highlighting the government’s commitment to strengthening entrepreneurship and promoting inclusive economic growth by easing credit access for underserved communities.
Source: PIB (Press Information Bureau)
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