Stand up India scheme completes 6 years
What is the news :
- The sixth anniversary of the Stand Up India scheme is celebrated.
- Over 30 thousand 160 crore rupees have been sanctioned under Stand Up India Scheme to more than 1 lakh 33 thousand 995 accounts since inception of the Scheme.
- Stand Up India scheme was launched by Prime Minister Narendra Modi on 5th April 2016.
- It facilitates loans to Scheduled Caste, Scheduled Tribe, and women borrowers for setting up a greenfield enterprise in manufacturing, services, or trading sector.
- Stand Up India Scheme was launched to promote entrepreneurship at grass-roots level focusing on economic empowerment and job creation. The objective of the Stand Up India Scheme is to facilitate loans between 10 lakh and one crore rupees to at least one Scheduled Caste or Scheduled Tribe borrower and one woman borrower per bank branch.
- In 2019-20, the Stand Up India scheme was extended till 2025. As India is growing rapidly, hopes, aspirations, and expectations of a large group of potential entrepreneurs, particularly women and Scheduled Castes, and Scheduled Tribes are rising.
- The scheme envisages facilitating the dreams of aspiring SC, ST, and women entrepreneurs to reality by supporting their energy and enthusiasm and removing many hurdles from their path.
Objective
- The objective of the Stand-Up India scheme is to facilitate bank loans between Rs. 10 lakh and Rs.1Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
- This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
Eligibility
- SC/ST and/or woman entrepreneurs, above 18 years of age.
- Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
- In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrower should not be in default to any bank/financial institution.
Need for the scheme:
- The Stand-Up India 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 an ecosystem which facilitates and continues to provide a supportive environment for doing business.
- The scheme seeks to give access to loans from bank branches to borrowers to help them set up their own enterprise.
What is the Differece between Stand-Up India Scheme and Start Up India Scheme?
- Stand-Up India Scheme is intended to support SC/ST/Women entrepreneurs to set up a green field projects through bank branches in India while Start Up India Scheme aims to boost innovative and technology led enterprises for new/existing enterprises.
Achievements
- More than 1 lakh women promoters have benefitted from this Scheme during its six years of operation.
- As on March 21, 2022, Rs. 30160 crore has been sanctioned under Stand Up India Scheme to 133,995 accounts.
- Total number of SC/ST and Woman borrowers benefited under Stand Up India scheme is depicted below (as on 21.03.2022):