Stand Up India Scheme completes Seven; More than Rs.40,700 crore Loans Sanctioned

Loans worth about Rs.40,600 crore covering 1.8 lakh entrepreneurs have been sanctioned so far under the Stand Up India Scheme, as per the Union finance minister Nirmala Sitharaman.

Stand up India Scheme was launched on 5th April 2016 to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation. This scheme has been extended up to the year 2025.

Recognizing the challenges that energetic, enthusiastic, and aspiring SC, ST, and women entrepreneurs may face in converting their dream to reality, Stand-Up India was launched to promote entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST) categories, in order to assist them in starting a greenfield enterprise in manufacturing, services, or the trading sector, as well as activities allied to agriculture.

On the occasion, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman said, “It is a matter of pride and satisfaction for me to note that more than 1.8 lakh women and SC/ST entrepreneurs have been sanctioned loans for more than Rs. 40,600 crore.”

“Through access to loans from bank branches of all Scheduled Commercial Banks, the scheme has created an eco-system that facilitates and continues to provide a supportive environment for establishing green field enterprises.” “The Stand-Up India Scheme has proven to be an important milestone in promoting entrepreneurship among SC, ST, and women,” the Finance Minister said on the occasion of the SUPI Scheme’s seventh anniversary.

Smt. Sitharaman stated that the Stand-up India Scheme has impacted many lives by providing the unserved/underserved segment of entrepreneurs with easy access to affordable credit. According to the Finance Minister, the plan has given aspiring entrepreneurs wings to demonstrate their entrepreneurial acumen, and the potential entrepreneurs hold in driving economic growth and creating a strong ecosystem by being job creators is enormous.

On the occasion of the 7th anniversary of the Stand-Up India Scheme, Union Minister of State for Finance Dr Bhagwat Kisanrao Karad stated, “The Stand-Up India Scheme is founded on the third pillar of the National Mission for Financial Inclusion, namely “Funding the Unfunded.” The scheme has guaranteed a continuous flow of credit from Schedule Commercial Bank branches to SC/ST and women entrepreneurs. Scheme has helped to raise the living standards of entrepreneurs, their workers, and their families.”

“Over the last seven years, more than 1.8 lakh entrepreneurs have benefited from this scheme,” Dr. Karad said. “It also gives me great pleasure that more than 80% of loans made under this scheme have gone to women,” Dr Karad added.

As we celebrate the seventh anniversary of Stand Up India Scheme (SUPI), let us glance at the features and achievement of this Scheme.

The purpose of Stand-Up India is to:

• promote entrepreneurship amongst women, SC & ST category;
• Provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture;
• facilitate bank loans between Rs.10 lakh and Rs.100 lakh to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks.

Why Stand-Up India?

The Stand-Up India scheme is designed to address 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 endeavors to create an ecosystem which facilitates and continues to provide a supportive environment to the target segments in doing business. The scheme aims to encourage all bank branches in extending loans to borrowers from SC, ST and women in setting up their own greenfield enterprise. The desiring applicants can apply under the scheme:

• Directly at the branch or,
• Through Stand-Up India Portal (www.standupmitra.in) or,
• Through the Lead District Manager (LDM).

Who all are eligible for a loan?

• 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.