The Prime Minister of India has recently affirmed recognition of the vital role played by the Stand-Up India initiative. This programme is instrumental in fortifying the Scheduled Caste (SC) and Scheduled Tribe (ST) communities along with endorsing women empowerment.
Overview of the Stand-Up India Scheme
Launched on 5th April 2016 by the Ministry of Finance, the Stand-Up India scheme aims to encourage entrepreneurship at grass root levels. Its primary focus lies in economic empowerment and job creation. The timeline of this initiative extends until the year 2025.
Purpose of the Stand-Up India Scheme
The primary objectives of the scheme include promoting entrepreneurship amongst women, people from SC and ST categories, providing loans for greenfield enterprises in diverse sectors such as manufacturing, services, trading, and activities linked to agriculture. It facilitates bank loans ranging from Rs.10 lakh to Rs.100 lakh to at least one SC/ST borrower and one female borrower per bank branch of Scheduled Commercial Banks.
Loan Facilitation under the Stand-Up India Scheme
All bank branches are encouraged to extend loans under this programme. Interested applicants can apply through various channels: directly at the bank branch, through the Stand-Up India Portal (www.standupmitra.in), or via the Lead District Manager (LDM).
Eligibility Criteria for the Stand-Up India Loan
The eligibility criteria for obtaining a loan under the Stand-Up India scheme include being a SC/ST and/or woman entrepreneur above the age of 18. The loans granted under this scheme are exclusively for greenfield projects, signifying first-time ventures in manufacturing, services or the trading sector, and activities related to agriculture.
In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either SC/ST or a woman entrepreneur. Borrowers should not be in default to any bank or financial institution.
The scheme envisages a margin money of up to 15%, which can be provided in sync with eligible Central or State schemes. Regardless, the borrower is required to contribute at least 10% of the project cost.
Achievements of the Stand-Up India Scheme
Over the last seven years, the Stand-Up India scheme has sanctioned Rs.40,710 crore to 180,636 accounts. Interestingly, more than 80% of loans granted under this scheme have been allocated to women.
In conclusion, the Stand-Up India scheme has not just boosted entrepreneurship but also catalysed empowerment for women, and the SC and ST communities.