The government has proposed a scheme to provide term loans of up to Rs 2 crore for first-time women entrepreneurs belonging to the SC and ST communities
Union Minister of Finance Nirmala Sitharaman announced in her Budget Speech that the government will facilitate a Rs 2 crore term loan for 500,000 first-time women entrepreneurs from the SC and ST communities. This is aimed at fostering women empowerment and the upward growth of Indian economy.
“For 500,000 first-time entrepreneurs, including women, SC and ST communities, a new scheme is to be launched to provide term loans up to Rs 2 crore during the next five years. The scheme will incorporate lessons from the successful Standup India Scheme,” she said.
In last year’s Budget, presented on July 23, 2024, Sitharaman said Budget 2024 had allocated Rs 3 lakh
crore for schemes regarding the benefits of women and girls, leading towards women-led development.
A 2022 report from IFC shows that around 90 per cent of Indian women entrepreneurs have never opted for any loan from a formal lending institution. This decision of the government presented in this year’s budget marks a significant move towards not only the welfare of women entrepreneurs, but also any first-time entrepreneur from the backward classes.
The Press Information Bureau (PIB) of India has published a post on its official X handle regarding this announcement, with a caption saying, “Powering Entrepreneurship”.