INTRODUCTION
The Stand-Up India Scheme is a government initiative launched in 2016 by the Government of India to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) communities in the country. The scheme aims to provide financial assistance and support to aspiring entrepreneurs from these communities to start their own businesses. The loan amount provided ranges from Rs. 10 lakhs to Rs. 1 crore and is intended to cover the cost of the project, including land, machinery, equipment, working capital, and other expenses related to the business. The Stand-Up India Scheme provides collateral-free loans to eligible entrepreneurs and is expected to contribute to the development of a vibrant and inclusive entrepreneurial ecosystem in the country.
OBEJCTIVE OF THE SCHEME
The objective of the Stand-Up India Scheme is to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) communities in India by providing collateral-free loans of up to Rs. 1 crore for greenfield projects and supporting the beneficiaries through handholding and mentoring programs to ensure their success. This enterprise may be in manufacturing, services, Agri- allied activities or the trade sector in case of non-individuals enterprises at least 51% of the shareholding and controlling stale should be held by either SC/ST or Women entrepreneur.
REQUIREMENTS FOR THE SCHEME
1. Eligibility Criteria: The Stand-Up India Scheme is available to Indian citizens who are over 18 years of age and belong to either the Scheduled Castes (SC), Scheduled Tribes (ST), or women entrepreneurs.
a. The borrower must not have any defaulted loans with any bank or financial institution.
b. Loans under the schemes is available only for the green field project.
2. Loan Amount: The loan amount available under this scheme is between Rs. 10 lakhs to Rs. 1 crore. The loan is provided without any collateral security. However, the borrower has to contribute 10% of the project cost as his/her own margin money.
3. Nature of Business: The scheme is applicable for greenfield projects, i.e., projects that are new or are being started from scratch. The business should be in manufacturing, services, or trading sector and should create employment opportunities. The loan amount can be used for setting up new enterprises or expanding existing ones.
4. Interest Rate: The interest rate for Stand-Up India loans is based on the Base Rate or Marginal Cost of Funds based Lending Rate (MCLR) of the bank plus a spread of up to 3% per annum. The interest rate varies from bank to bank.
5. Repayment Period: The repayment period for Stand-Up India loans is up to 7 years, with a maximum of 18 months moratorium period, depending on the nature of the project.
6. Online Application: The application for the loan can be submitted online through the Stand-Up India portal or directly to the bank. The portal provides a single-window system for the submission of loan applications, tracking of applications, and loan approvals.
7. Support and Handholding: The Stand-Up India Scheme also provides handholding, mentoring, and training programs to the beneficiaries. The training programs are aimed at improving the entrepreneurial skills of the beneficiaries and providing them with knowledge about the technical, commercial, and financial aspects of running a business.
8. Margin Money: The Scheme envisages 15% margin money which can be provided by in convergence with eligible central or state schemes. While the schemes can be drawn upon for availing admissible subsidies of for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum 10% of the project cost as own contribution.
9. Application Process: The Stand-Up India Scheme is implemented through all scheduled commercial banks. The applicant has to submit the business plan and loan application form to the bank. The bank evaluates the proposal and decides on the loan amount to be sanctioned.
10. Size of the Loan: Composite loan of 85% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 85% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 15% of the project costs.
BENEFITS OF AVAILING THE STAND-UP INDIA SCHEME
1. Financial Support: The scheme provides financial support to aspiring entrepreneurs from women, SCs, and STs communities to start their own businesses. The loan amount ranges from Rs. 10 lakhs to Rs. 1 crore and is provided without any collateral security.
2. No Interest Subsidy: The scheme provides interest subsidy of up to 5% per annum for a period of 7 years to eligible borrowers. The interest rate for Stand-Up India loans is based on the Base Rate or MCLR of the bank plus a spread of up to 3% per annum. The interest rate varies from bank to bank.
3. Inclusive Entrepreneurship: The scheme aims to promote inclusive entrepreneurship by providing support to underprivileged communities to start their own businesses. The scheme ensures that at least one woman borrower and one borrower from either the SC or ST community are provided loans in each bank branch.
4. Job Creation: The scheme is aimed at creating employment opportunities by promoting entrepreneurship. The beneficiaries of the scheme are expected to create jobs for themselves as well as for others, thereby contributing to the economic development of the country.
5. Handholding and Training: The Stand-Up India Scheme provides handholding, mentoring, and training programs to the beneficiaries. The training programs are aimed at improving the entrepreneurial skills of the beneficiaries and providing them with knowledge about the technical, commercial, and financial aspects of running a business.
6. Encourages Innovation: The scheme promotes innovation by providing support to greenfield projects. The scheme encourages entrepreneurs to come up with new ideas and innovative solutions to address the needs of the market.
7. Boosts the Economy: The scheme is expected to contribute to the development of a vibrant and inclusive entrepreneurial ecosystem in the country, which will, in turn, boost the economy.
CONCLUSION
The Stand-Up India scheme is not just a government initiative, but a transformative step towards creating a more inclusive and equitable society in India. It provides a platform for entrepreneurs from marginalized communities to realize their dreams and aspirations, and in the process, create a more prosperous and sustainable future for themselves and their communities. The scheme is a testament to the government's commitment towards empowering the underprivileged and ensuring that they have access to the same opportunities as the rest of the population. By promoting entrepreneurship and innovation, the scheme is not just creating jobs, but also driving economic growth and development.
The success of the Stand-Up India scheme is a powerful reminder of the potential of entrepreneurship to bring about positive change in society. With continued support and encouragement, these entrepreneurs have the potential to become agents of change and transform the economic landscape of the country. It is imperative that the government continues to invest in initiatives like the Stand-Up India scheme, which are crucial in building a more inclusive and prosperous India.
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