Stand Up India Scheme was launched on April 05, 2016, to promote entrepreneurship at the grassroots level focusing on economic empowerment and job creation. The scheme has been extended till 2025.
Background:
As India grows rapidly, the hopes, expectations, and aspirations of a large group of potential entrepreneurs, particularly women, Scheduled Caste (SCs), and Scheduled Tribes (STs), are rising. They want to set up an enterprise of their own to allow themselves to thrive and grow. Such entrepreneurs are spread across the country and are bubbling with ideas on what they can do for themselves and their families. The Stand Up India Scheme envisages facilitating the dreams of aspiring SC, ST, and women entrepreneurs into reality by supporting their energy and enthusiasm and removing hurdles from their path.
Objective:
- Promote entrepreneurship among women, SC, and ST category
- Provide loans for greenfield enterprises in manufacturing, services, or the trading sectors and activities allied to agriculture.
- Facilitate Bank Loans between Rs. 10 Lakh and 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.
Need For The Scheme:
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 endeavors to create an eco-system that 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, can be accessed in three potential ways:
1. Directly at the branch
2. Through Stand Up India Portal
3. Through the Lead District Manager (LDM)
Eligibility:
- SC/ST and/or women entrepreneurs, above 18 years of age
- Loans under the scheme are available only for greenfield projects. Greenfield signifies, in the context, the first-time venture of the beneficiary in manufacturing, services, or the trading sector and 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
Changes Made To The Scheme:
Pursuant to an announcement by the Union Finance Minister in the Budget Speech FY 2021-22, the following changes have been made to the Stand Up India Scheme they are:
- The extent of margin money to be brought by the borrower has been reduced from ‘up to 25%’ to ‘up to 15%’ of the project cost. However, the borrower will continue to contribute at least 10% of the project cost as their own contribution
- Loans for enterprises in ‘Activities allied to agriculture’ eg. pisciculture, beekeeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, dairy, fishery, and agribusiness centers, food & agro-processing, etc. (excluding crop loans, land improvements such as canals, irrigation, wells) and services supporting these, shall be eligible for coverage under the Scheme.
Handholding Support:
To extend collateral-free coverage, the Government of India has set up the Credit Guarantee Fund for Stand-Up India (CGFSI). Apart from providing credit facilities, the Stand Up India Scheme also envisages extending handholding support to potential borrowers. It also provides for convergence with Central/State Government Schemes. An application under the scheme can also be made online at the portal.
Apart from linking prospective borrowers to banks for loans, the online portal developed by the Small Industries Development Bank Of India (SIDBI) for the Stand Up India Scheme is also providing guidance to prospective entrepreneurs in their endeavor to set up business enterprises, starting from training to filling up a loan application, as per bank requirements.
Through a network of more than 8,000 Hand Holding Agencies, this portal facilitates step-by-step guidance for connecting prospective borrowers to various agencies with specific expertise viz. Skilling Centres, Mentorship support, Entrepreneur Development Program Centres, and District Industries Centre, together with addresses and contact numbers.
Achievements:
- More than 1 Lakh women promoters have benefitted from this Scheme during its six years of operation.
- As on March 21, 2022, Rs. 30160 Crore has been sanctioned under Stand Up India Scheme to 1,33,995 accounts.
Success Stories:
1. Mrs. Asiya Bin Gulshan is associated with the work of event catering. She proposed to start her own business supplying chairs, and utensils for various functions and approached the Char Minar Branch of Andhra Bank for a loan. Her husband is also unemployed and came forward to assist her in the business. They have sanctioned term loans and working capital to meet daily expenditures. The proposed unit is located in a prime area and there are no units of similar activities. Asiya is confident of success in the business.
2. Smt. Sonalben Sureshbhai Rupara residing at Radhe Residency, Utran, Surat applied for purchasing embroidery machines for production work to be set up at OLD GIDC, Katargam, Surat under Stand Up India Portal and the bank picked up the application from the market place. The total financial assistance is given to her as a term loan of Rs. 39 Lacs as per her requirement. The entrepreneur is successfully running the embroidery unit and generating sufficient cash flow to regularly serve the interest and installment also providing employment for 5 to 6 persons in her unit.
3. Mrs. Suma K T from Tripunithura, Kerala was engaged in the production and manufacture of paper cartons and paper products. But, due to heavy competition in this field, she was unable to achieve decent profits. She then approached the Bank Of Baroda for modernization of the unit by installing the latest state of art technology laser cutting machines, which would diversify and enhance the quality of the products produced. The proposal was considered favorably, a pre-sanction inspection was conducted, the assessment was made and a loan was sanctioned for Rs. 75 Lakhs term loan and Rs. 10 Lakhs working capital limit. Now, Mrs. Suma is having several orders on hand. She has commenced repayment of the loan and is a successful entrepreneur.