The Government of India keeps launching new schemes from time to time for the welfare and growth of Indian citizens.
Mr Narendra Modi, the Prime Minister of India, in April 2016 launched one such scheme to encourage the ‘Make In India’ concept. The Stand Up India Scheme encourages women and people belonging to the scheduled caste and scheduled tribes across the country to become entrepreneurs by loaning them a sum of money to start a business.
The scheme is part of an initiative by the Ministry of Finance and the Department of Financial Services (DFS) to promote entrepreneurial projects.
Key Features of The Stand-Up India Scheme
● The loan amount can range anywhere from Rs 10 lakhs to Rs.1 crore, which is inclusive of working capital for setting up a new enterprise.
● As per the scheme, on average, each bank branch needs to facilitate two entrepreneurial projects. One of which is for SC/ST and one for a woman entrepreneur.
● The borrower will get a RuPay debit card for the withdrawal of credit. Banks will also maintain the credit history of the borrower to ensure that the money is not used for any personal use.
● The scheme has a Refinance window through the Small Industries Development Bank of India (SIDBI) with an initial amount of Rs.10,000 crore.
● Creation of a corpus of Rs. 5000 crores for credit guarantee through NCGTC.
● Small Industries Development Bank of India (SIDBI) will lead the Stand Up India scheme along with the involvement of the Dalit Indian Chamber of Commerce and Industry (DICCI).
● SIDBi and the National Bank of Agriculture and Rural Development (NABARD) will be provided with the designation of Stand Up Connect Centres (SUCC).
● The margin money for the composite loan will be up to 25 per cent to help the credit system reach out to the entrepreneurs.
For being eligible to apply for a loan under the scheme, there are certain eligibility criteria people need to fulfil.
● The individual should either be a woman or a person belonging to a scheduled caste or a scheduled tribe above the age of 18 years.
● The company must be a private limited/LLP or a partnership firm, and its turnover must not be more than 25 crores. In the case of non-individual enterprises,51% of the shareholding and controlling stakes should be held by either SC/ST and/or Women Entrepreneur.
● The loan will only be provided to fund greenfield projects. Greenfield here means the first-time venture of the beneficiary in the manufacturing or services or trading sector.
● The borrower must not be a defaulter of a bank or any other Organisation.
● The company should be approved by DIPP and deal with any commercial or innovative consumer goods.
How To Apply For The Scheme
The Stand Up India scheme covers all branches of Scheduled Commercial Banks. Individuals interested can access the scheme in three ways.
● At a bank Branch Directly
● Through SIDBI Stand-Up India Portal (www.standupmitra.in)
● Through the Lead District Manager
Procedure to Apply For The Scheme Through SIDBI Stand-Up India Portal
● The Stand-Up India Portal provides information to a potential borrower on various kinds of handholding support from different agencies and also provides a window to get in touch with banks to avail loans.
● Once visiting the portal, the applicant first has to click on "Register" and answer to few short questions on the Registration page of the portal.
● Based on the response, the Applicants would be classified as the "Trainee Borrower" or"Ready Borrower". They would also be given feedback on their eligibility for a stand-up India loan.
● A trainee borrower/ready borrower may then choose to register and log in through the portal.
● Upon logging through the portal, the borrower is taken to a dashboard which contains the further steps to apply for the scheme.
The Stand Up India scheme by the Indian government is a loan program from time to ensure the development of the country and its economy by providing financial aid to individuals in the minority sector. It aims to encourage entrepreneurship among individuals and give them a chance to realise their dreams into reality.