More than Rs 30,160 crore loans sanctioned to over 1,33,995 accounts under Stand-Up India Scheme in 6 years

Let us look at how the Stand Up India Scheme has fulfilled the aspirations of entrepreneurs, particularly women and Scheduled Castes (SCs), Scheduled Tribes (STs), and sift through the achievements, salient features, and enhancements to the scheme over the years as we celebrate its sixth anniversary.

Recognizing the hurdles faced by aspirant SC, ST, and women entrepreneurs, the Stand-up India Scheme was created on April 5, 2016, to foster entrepreneurship at the grassroots level with an emphasis on economic empowerment and employment creation. The Stand Up India scheme was extended throughout the entire duration of the 15th Finance Commission, which runs from 2020 to 25.

“As we commemorate the sixth anniversary of the Stand-Up India Scheme, it is heartwarming to observe that more than 1.33 lakh new job-creators and entrepreneurs have been assisted under this Scheme,” said Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman.

“More than 1 lakh women promoters have benefited from this Scheme throughout its six years of existence,” Smt. Sitharaman added. The government recognizes the potential of these rising entrepreneurs to drive economic growth by acting not only as wealth producers but also as employment creators.

“As more entrepreneurs from disadvantaged segments are targeted for coverage, we will make substantial progress toward developing an Atmanirbhar Bharat,” the Finance Minister stated.

The dreams, aspirations, and expectations of a huge group of potential entrepreneurs, particularly women and Scheduled Castes (SCs), and Scheduled Tribes (STs), are rising as India grows fast. They want to start a business of their own so that they can prosper and grow. Such entrepreneurs can be found all over the country, full of ideas for what they might achieve for themselves and their families. The initiative aims to help prospective SC, ST, and women entrepreneurs realize their dreams by boosting their energy and excitement and removing several roadblocks in their way.

Let us take a look at the features and accomplishments of the Stand Up India Scheme as we commemorate its sixth anniversary.

Stand-Up India’s goal is to encourage women, Scheduled Castes (SC), and Scheduled Tribes (ST) to start new businesses in manufacturing, services, or trading, as well as activities related to agriculture.

Stand-Up India’s mission is to:

• SC & ST women should be encouraged to start businesses;
• providing loans to start-up businesses in manufacturing, services, and trading, as well as operations related to agriculture;
• At least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower in every Scheduled Commercial Bank branch are given bank loans between Rs.10 lakh and Rs.1 crore.

What is the purpose of Stand-Up India?

The Stand-Up India scheme is founded on an understanding of the difficulties faced by SC, ST, and women entrepreneurs in establishing businesses, acquiring loans, and other forms of help that may be required from time to time in order to thrive in business. As a result, the strategy aims to develop an eco-system that supports and continues to provide a favorable business environment. Borrowers would be able to get loans from bank branches to help them start their own businesses under the scheme. The scheme, which applies to all Scheduled Commercial Bank branches, can be accessed in three ways:

• Immediately at the branch, or
• Through the Stand-Up India Portal (www.standupmitra.in) or the Stand-Up India Foundation (www.standupmitra.in).
• By way of the District Manager in Charge (LDM).

Who are the people who are eligible for a loan?

• SC/ST and/or female entrepreneurs above the age of 18;
• Only greenfield projects are eligible for the scheme’s loans. In this sense, the green field refers to the beneficiary’s initial venture in manufacturing, services, or trading, as well as operations related to agriculture.
• SC/ST and/or Women Entrepreneurs shall possess 51 percent of the shareholding and controlling position in non-individual firms.
• Borrowers must not fail any bank or financial institution.
• The Scheme calls for ‘up to 15%’ margin money to be granted in conjunction with qualified Central/State schemes. While such schemes can be used to get eligible subsidies or meet margin money requirements, the borrower must contribute a minimum of 10% of the project cost as their own contribution in all situations.

Handholding Assistance:

Apart from connecting potential borrowers with banks for loans, the online portal www.standupmitra.in developed by the Small Industries Development Bank of India (SIDBI) for the Stand Up India Scheme also offers guidance to prospective entrepreneurs in their efforts to start businesses, from training to filling out loan applications according to bank requirements. This portal facilitates step-by-step guidance for connecting prospective borrowers to various agencies with specific expertise, such as Skilling Centres, Mentorship support, Entrepreneurship Development Program Centres, and District Industries Centre, along with addresses and contact numbers, through a network of more than 8,000 Hand Holding Agencies.

Changes to the Stand-Up India Program

The following adjustments to the Stand Up India Scheme have been implemented as a result of an announcement made by the Union Finance Minister in his Budget speech for FY 2021-22:-

• The amount of margin money that the borrower must bring has been cut from ‘upto 25%’ to ‘upto 15%’ of the project cost. The borrower will, however, continue to invest at least 10% of the project’s cost as an individual contribution.
• Loans for ‘activities allied to agriculture, such as pisciculture, beekeeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, dairy, fishery, agriclinic and agribusiness centers, food & agro-processing, etc. (excluding crop loans, land improvement such as canals, irrigation, wells) and services supporting these, will be covered under the Scheme.

The Credit Guarantee Fund for Stand Up India was established by the Indian government to provide collateral-free coverage (CGFSI). Apart from providing financing, the Stand Up India Scheme also plans to offer potential borrowers handholding assistance. It also allows for alignment with federal and state government programs. The scheme’s applications can also be submitted online at the (www.standupmitra.in) site.

This Scheme’s accomplishments as of March 21, 2022

• Since its commencement, the Stand Up India Scheme has sanctioned Rs. 30160 crore to 133,995 accounts through March 21, 2022.
• As of March 21, 2022, the total number of SC/ST and woman borrowers who have benefited from the Stand Up India scheme is as follows.