• The Stand Up India scheme, which was launched by the central government on April 5, 2016, has completed six years. 

• The scheme was launched to encourage entrepreneurship at grassroots  level to foster economic empowerment and job creation, especially among Scheduled Castes (SC), Scheduled Tribes (ST) and women entrepreneurs.

• Women account for more than 81 per cent of the total beneficiaries under the Stand Up India scheme with loans worth Rs 30,160 crore sanctioned to 133,995 accounts since inception of the scheme.

• More than 1.33 lakh new job-creators and entrepreneurs have so far been facilitated under this scheme.

• The scheme has been extended up to 2025.

The need for such a scheme

• The Stand Up India scheme aims to promote entrepreneurship amongst women, SC & ST category, those sections of the population understood to be facing significant hurdles due to lack of advice/mentorship as well as inadequate and delayed credit.  

• The 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 a financial ecosystem which facilitates and continues to provide a supportive environment for doing business.

• It envisages to facilitate the dreams of aspiring SC, ST and women entrepreneurs to reality by supporting their energy and enthusiasm and removing many hurdles from their path.

• The objective of the scheme is to facilitate loans of value between Rs 10 lakh and Rs 1 crore to at least one Scheduled Caste or Scheduled Tribe  borrower and one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services or trading sector and activities allied to agriculture.

• Government does not allocate funds for loans under the Stand Up India Scheme. Loans under the scheme are extended by Scheduled Commercial Banks (SCBs) as per commercial parameters, board approved policies of respective banks and extant RBI guidelines.

Who all are eligible for the loan?

• SC/ST and/or women entrepreneurs, above 18 years of age.

• Loans under the scheme are available for only greenfield projects. Greenfield signifies 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 per cent of the shareholding and controlling stake should be held by either SC/ST and/or women entrepreneurs.

• Borrowers should not be in default to any bank/financial institution.

Implementation of the scheme

The government has taken various steps towards effective implementation of the scheme. They are:

• 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.

The scheme envisages up to 15 per cent 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 a minimum of 10 per cent of the project cost as own contribution.

Hand-holding support

• Apart from providing credit facility, Stand Up India scheme also envisages extending hand-holding support to the potential borrowers.

• The online portal www.standupmitra.in developed by Small Industries Development Bank of India (SIDBI) is providing 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 like skilling centres, mentorship support, entrepreneurship development programme centres, district industries centre.

• To extend collateral free coverage, the government has set up the Credit Guarantee Fund for Stand Up India (CGFSI).

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