More than 1.8 lakh women and SC/ST entrepreneurs have been granted loans for over Rs. 40,600 crores under the Stand-Up India scheme to promote entrepreneurship at the grassroots level, focusing on economic empowerment and job creation.
The scheme was launched on April 5th, 2016 and has been extended up to the year 2025.
What is Standup India?
Prime Minister Narendra Modi in his Independence Day address on August 15, 2015 unveiled the "Start-Up India" Stand-Up India campaign to promote entrepreneurship at grass root level for economic empowerment and job creation.
The objective of the Stand-Up India Scheme is to facilitate bank loans between Rs 10 lakh to Rs 100 lakh to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one-Woman borrower per bank branch of all scheduled commercial banks for setting up a greenfield enterprise.
Why Was Standup India Scheme Launched?
Recognizing the difficulties that energetic, enthusiastic, and aspiring SC, ST, and women entrepreneurs may face in converting their dreams into reality, Stand-Up India was introduced to promote entrepreneurship among them and help them start greenfield enterprises in manufacturing, services, or the trading sector and activities allied to agriculture.
Fin Min Praises Scheme Outreach
On the seventh anniversary of the SUPI scheme, Union Finance & Corporate Affairs Minister Nirmala Sitharaman expressed pride and satisfaction over the outreach of these scheme.
She said, “The scheme has created an eco-system which facilitates and continues to provide a supportive environment for setting up green field enterprises through access to loans from bank branches of all Scheduled Commercial Banks. Stand-Up India Scheme has proved to be an important milestone in promoting entrepreneurship among SC, ST and women.”
The scheme has provided wings to aspiring entrepreneurs to showcase their entrepreneurial acumen, and the potential entrepreneurs hold in driving economic growth and building a strong ecosystem by being job creators is immense.
Sitharaman said that Stand-up India Scheme has touched numerous lives by ensuring access to hassle-free affordable credit to the unserved/underserved segment of entrepreneurs.
The Finance Minister said that the scheme has provided wings to aspiring entrepreneurs to showcase their entrepreneurial acumen and the potential entrepreneurs hold in driving economic growth and building a strong ecosystem by being job creators is immense.
Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad also said more than 80% of loans given under this scheme have been provided to women.
Dr Karad further said, "Stand-up India scheme is based on the third pillar of National Mission for Financial Inclusion namely “Funding the unfunded”. Scheme has ensured availability of seamless credit flow from branches of Schedule Commercial Banks to SC/ST and women entrepreneurs. Scheme has been instrumental in improving the standards of living for entrepreneurs, their employees and their families."
The Stand-Up India scheme aims to promote entrepreneurship among women, SC & ST categories and provide loans for greenfield enterprises in manufacturing, services, or the trading sector and activities allied to agriculture. The scheme encourages all bank branches to extend loans to borrowers from SC, ST, and women in setting up their own greenfield enterprise.
Who are eligible for loans?
- SC/ST and/or women entrepreneurs, above 18 years of age;
- Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture;
- In 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 Scheme envisages ‘up to 15%’ margin money which can be provided in convergence with eligible Central/State schemes. In any case, the borrower shall be required to bring in minimum of 10 % of the project cost as own contribution.
How Does the Standup India Scheme Run?
The scheme has an online portal developed by the Small Industries Development Bank of India (SIDBI) called www.standupmitra.in that provides guidance to prospective entrepreneurs in their endeavour to set up business enterprises, starting from training to filling up loan applications, 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, Entrepreneurship Development Program Centres, District Industries Centre, together with addresses and contact number.
Today we mark #7YearsofStandUpIndia and acknowledge the role this initiative has played in empowering the SC/ ST communities and ensuring women empowerment. It has also boosted the spirit of enterprise our people are blessed with. https://t.co/x73prFVWVl— Narendra Modi (@narendramodi) April 5, 2023