- Giving a push to Government’s Financial Inclusion program, the StandUp India scheme was launched in April 2016.
- The objective of the ‘StandUp India Scheme‘ is to promote entrepreneurship among Scheduled Caste/ Tribe and Women by providing loans in the range of Rs. 10 Lakhs to Rs.100 Lakhs.
- It facilitates bank loans to at least one SC or ST borrower and at least one women borrower per bank branch (a total of two such loans) without collateral for setting up a greenfield enterprise in the non-farm sector.
- With 1.25 lakh bank branches in the country, the scheme would help 2.5 lakh such entrepreneurs to set up businesses in the country
- The Greenfield 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 a woman entrepreneur.
- Composite loans (inclusive of term loan and working capital) between Rs. 10 lakh and up to Rs. 100 lakh representing up to 75% of the project cost would be eligible.
- Apart from linking prospective borrowers to banks for loans, the web portal designed by SIDBI for Stand Up India Scheme also provides handholding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filling, work shed/utility support services, subsidy schemes etc.
- In addition, borrowers will be provided a RuPay debit card to enable the withdrawal of the working capital.
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The government will also develop the credit histories of these under-banked sections of society and will open a refinance window through the Small Industries Development Bank of India(SIDBI) with an initial amount of Rs. 10,000 crore.
- The scheme will also facilitate the creation of a corpus of Rs. 5,000 crore for credit guarantee via the National Credit Guarantee Trustee Company (NCGTC).
StandUp India Scheme-Briefly Explained
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