Stand Up India Scheme

• Stand up India Scheme was launched on 5th April 2016 to promote entrepreneurship at grassroots level focusing on economic empowerment and job creation. This scheme has been extended up to the year 2025.
• The objective of Stand-Up India is to promote entrepreneurship amongst women, Scheduled Castes (SC) & Scheduled Tribes (ST) categories, to help them in starting a greenfield enterprise in the trading, manufacturing and services sector, by both ready and trainee borrowers.

The purpose of Stand-Up India is to:

• promote entrepreneurship amongst women, SC & ST category.
• Provide loans for setting up greenfield enterprises in manufacturing, services or the trading sector & activities allied to agriculture by both ready and trainee borrowers
• facilitate bank loans between Rs.10 lakh to Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks

Why Stand-Up India?

• The Stand-Up India scheme is based on recognition of the challenges faced by SC, ST and women entrepreneurs in setting up enterprises, obtaining loans and other support needed from time to time for succeeding in business.
• The scheme, therefore, endeavours to create an eco-system which facilitates and continues to provide a supportive environment for doing business.
• The scheme seeks to give access to loans from bank branches to borrowers to help them set up their own enterprises.
• The scheme, which covers all branches of Scheduled Commercial Banks, will be accessed in three potential ways:

1. Directly at the branch or,
2. Through Stand-Up India Portal (www.standupmitra.in) or,
3. Through the Lead District Manager (LDM).

Who all are eligible for a loan?

• SC/ST and/or women entrepreneurs, above 18 years of age.
• Loans under the scheme are available for only green field projects. Greenfield signifies, in this context, the first time venture of the beneficiary in the manufacturing, services or trading sector & activities allied to agriculture
• In the case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
• Borrowers should not be in default to any bank/financial institution.

Stand Up India Scheme

The government has informed the Lok Sabha that 81% of the accounts under the Stand Up India Scheme belong to women entrepreneurs.

Stand Up India Scheme:

• Launched in 2016 by the Department of Financial Services, Ministry of Finance.
• The Stand-Up India Scheme facilitates bank loans for setting up a new enterprise in manufacturing, services, agri-allied activities, or the trading sector by SC/ST/Women entrepreneurs.
• It provides bank loans between Rs 10 lakh and up to 1 crore.
• The government does not allocate funds for loans under the Scheme.
• They are extended by Scheduled Commercial Banks(SCBs).

Eligibility:

• SC/ST and/or woman entrepreneurs above 18 years of age.
• Loans under the scheme are available only for greenfield projects.
• Greenfield signifies the first-time venture of the beneficiary in the manufacturing, services, agri-allied activities or trading sector.
• In the case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
• Borrowers should not be in default to any bank/financial institution.
• The loan is repayable in 7 years with a maximum moratorium period of 18 months.
• The Stand-Up India Scheme has been extended up to the year 2025