To promote entrepreneurship at the grassroots level, the Centre has sanctioned more than ₹40,700 crore to over 1,80,630 beneficiaries under the Stand-Up India Scheme in the last seven years.
Key Points of the Stand Up India Scheme
- The scheme was launched on April 5, 2016, to promote SC, ST and women entrepreneurs at the grassroot level, focusing on economic empowerment and job creation. In 2019-20, the Stand Up India Scheme was extended till 2025.
- The ministry had last April said that over Rs 30,160 crore worth of loans were disbursed under the scheme in the first six years, which implies that the past one year saw disbursals of around Rs 10,000 crore, or accounted for a quarter of all disbursals.
- The government said that out of the over 1,80,000 beneficiaries of the scheme till date, 1,44,787 were women entrepreneurs, while 26,889 belonged to the Scheduled Castes and 8,960 to the Scheduled Tribes.
Steps Taken by the Government to Implement the Stand Up India Scheme
The Government has taken various steps towards effective implementation of the Scheme, these, inter alia, include
- provision for submission for online applications by potential borrowers through www.standupmitra.in portal
- hand-holding support
- intensive publicity campaign
- simplified loan application form
- Credit Guarantee Scheme
- convergence with State and Central government Schemes wherever feasible
- reduction in margin money and inclusion of activities allied to agriculture etc
About the Stand Up India Scheme
- Stand-Up India Scheme was launched to promote entrepreneurship at the grass-root level of economic empowerment and job creation.
- The Stand-Up India Scheme launched to coincide with the celebration of the 125th birth anniversary of Babasaheb Bhimrao Ambedkar, seeks to leverage the institutional credit structure to reach out to the underserved sector of people
- The government does not allocate funds for loans under the Scheme. They are extended by Scheduled Commercial Banks (SCBs)
Objectives of the Stand Up India Scheme
- The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
- This enterprise may be in manufacturing, services, agri-allied activities or the trading sector In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
Eligibility Criteria for the Stand Up India Scheme
- SC/ST and/or woman entrepreneurs, above 18 years of age.
- Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing, services, agri-allied activities or the trading sector
- In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur
- Borrower should not be in default to any bank/financial institution
Features of the Stand Up India Scheme
- The rate of interest would be lowest applicable rate of the bank for that category
- The loan is repayable in 7 years with a maximum moratorium period of 18 month
- Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks
- Composite loan of 85% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 85% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 15% of the project cost.
- The Scheme envisages 15% margin money which can be provided in convergence with eligible Central / State schemes.
- While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.
How to Apply for Loans under the Stand Up India Scheme
- The scheme, which covers all branches of Scheduled Commercial Banks, will be accessed in three potential ways.
- Directly at the branch or
- Through Stand-Up India portal (www.standupmitra.in) or
- Through the Lead District Manager ((LDM)
- The offices of SIDBI (Small Industries Development Bank of India) and NABARD (National Bank for Agriculture and Rural Development)are designated Stand-Up Connect Centres (SUCC).
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