Recently, India celebrated the 6th anniversary of the Stand Up India Scheme. Launched on 5th April 2016, the scheme proved to be pivotal in nurturing entrepreneurship amongst marginalized sections. Anchored by the Department of Financial Services (DFS), undoubtedly Stand Up India focused on the SCs, STs, and women population.
- promoting entrepreneurship amongst women, SC & ST category.
- to provide loans for ‘greenfield enterprises’ in manufacturing, services, or the trading sector and activities allied to agriculture.
- What is a Greenfield Enterprises? – The first-time venture of the beneficiary in the manufacturing or services or trading sector.
- furthermore, give access to loans from bank branches to borrowers to help them set up their own enterprises.
- All the SC/ST and/or Women Entrepreneurs
- Moreover, beneficiaries should be above 18 years of age
- Importantly, loans under the scheme are available for only ‘greenfield projects’
- However, in the case of non-individual enterprises, 51% of the shareholding and controlling stakes should be held by either SC/ST and/or Women Entrepreneurs.
- In particular, the Stand Up India Scheme facilitates bank loans between 10 Lakh and 1 crore to at least one scheduled caste (SC) or Scheduled Tribe (ST), borrower, and at least one woman per bank branch for setting up a greenfield enterprise.
- Apart from this, the scheme, which covers all branches of Scheduled Commercial Banks, will be accessed in 3 potential ways:
- Directly at the branch or,
- through Stand-Up India Portal (www.standupmitra.in) or,
- through the Lead District Manager (LDM)
Without a doubt, this initiative by the Ministry of Finance achieved many milestones in this journey of 6 years. Briefly, some key achievements of Stand Up India include loans up to Rs 30,395 crores to 1,54,287 accounts since its inception.
Here are the facts and figures of the scheme.
With this in mind, the Union Finance Minister in the budget speech also announced certain changes to the scheme. For instance:
- The extent of margin money to be brought up by the borrower has been reduced from up to 25% to up to 15% of the project cost.
- Nevertheless, the borrower will continue to contribute at least 10% of the project cost as their own contribution.
- Along with this, to extend collateral-free coverage, the Government of India has set up the ‘Credit Guarantee Fund for Stand Up India (CGFSI)’
To learn more about the scheme- Start-Up India, Stand Up India- a Dream Soon to be Materialized