The StandUp India scheme, which facilitates loans to SC, ST and women borrowers, has completed its six years today. Since the inception of the scheme in 2016, total loans worth Rs 30,160 crore have been sanctioned to 1,33,995 beneficiaries up to March 21 this year, according to an official statement released on Tuesday.
“As we commemorate the sixth anniversary of the Stand-Up India Scheme, it is heartening to see that more than 1.33 lakh new job creators and entrepreneurs have so far been facilitated under this Scheme,” Union Finance Minister Nirmala Sitharaman said, as per the statement.
She also said more than one lakh woman promoters have benefitted from this Scheme during the six years of its operation. “The government understands the potential these rising entrepreneurs have in driving economic growth through their roles as not just wealth-creators but also job-creators… As more and more beneficiaries from the underserved segments of entrepreneurs are targeted for coverage, we would make significant strides towards building an Atmanirbhar Bharat.”
The StandUp India scheme was launched on April 5, 2016, to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation. Its objective is to facilitate bank loans between Rs 10 lakh and Rs 1 crore to at lease one Scheduled Caste (SC) or Scheduled Tribe (ST) borrowers and at least one woman borrower per bank branch to set up an enterprise. The enterprise can be in manufacturing, services, agri-allied activities or the trading sector.
The statement said that the 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 eco-system 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,” it added.
Eligibility for the Scheme
Loans under the scheme are available for only greenfield projects — first time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture. Those eligible for the scheme includes SC/ST and/or women entrepreneurs, above 18 years of age; in the case of non-individual enterprises, 51 per cent 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 per cent’ margin money that can be provided in convergence with eligible Central/ state schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements; in all cases, the borrower will be required to bring in minimum of 10 per cent of the project cost as own contribution.
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