Banks sanction Rs 62,791 crore under Stand-Up India Scheme since 2016

The government also reported Rs 17,811 crore disbursed under the Modified Interest Subvention Scheme for crop loans

New Delhi: Banks have sanctioned Rs 62,791 crore to 2,75,291 loan accounts under the Stand-Up India Scheme since its launch, Parliament was informed on Tuesday.

The Stand-Up India Scheme was launched on April 5, 2016, with an aim to promote entrepreneurship among the SC/ST and Women by facilitating bank loans of value between Rs 10 lakh and Rs 1 crore to at least one SC/ST borrower and one-woman borrower per bank branch of Scheduled Commercial Banks, Minister of State for Finance Pankaj Chaudhary told Rajya Sabha.

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The loans are sanctioned under the scheme for setting up greenfield enterprises in the trading, manufacturing, services sectors & activities allied to agriculture, he said in a written reply.

Replying to another question, Chaudhary said the total interest subsidy (both Interest Subvention and Prompt Repayment Incentive) disbursed under the Modified Interest Subvention Scheme (MISS) for the year 2024-25 is Rs 17,811.72 crore as reported by the Department of Agriculture and Farmers’ Welfare for short-term crop loans.

In a separate response, Chaudhary said the Peer-to-Peer (P2P) lending is regulated as per Reserve Bank of India (RBI) Master Directions – Non-Banking Financial Company – Peer to Peer Lending (NBFC-P2P) Platform (Reserve Bank) Directions, 2017 last updated on February 27, 2025.

These directions provide a framework to regulate the functioning of P2P lending platforms in India, ensuring fair lending practices, borrower protection, and effective risk management.

The compliance with the aforesaid guidelines is examined during the Supervisory Assessment of the Non-Banking Financial Companies (NBFCs) and any non-compliance observed during such assessment is taken up for rectification, besides initiating supervisory/ enforcement action.