Stand Up India Scheme: All You Need To Know

The sole purpose of Stand Up India Scheme is to promote entrepreneurship amongst women and minority reserved categories.

Stand Up India Scheme was launched by the Ministry of Finance on 5th April 2016 under the leadership of Honourable Prime Minister Narendra Modi. The scheme promotes economic empowerment and job creation. 

The scheme’s sole purpose is to promote entrepreneurship amongst women and minority reserved categories — scheduled caste and scheduled tribe (SC/ST). So far, it has provided loans for greenfield enterprises in manufacturing and trading activities aligned with agriculture. 

What is the aim Stand Up India Scheme?

The scheme also aims to encourage all bank branches to extend loans. The desiring applicants can apply under the Stand Up India Scheme by visiting the nearby branch, through the Stand Up India Portal, or with the help of the lead District Manager. 

The eligibility criteria for a loan are as follows: 

  • SC/ST or women entrepreneurs
  • The age should be 18+ years.
  • Loans under this scheme are particularly available for green field projects (agriculture-related activities) only.
  • Borrowers should not be in default to any financial institution.

Benefits of the scheme?

The benefits of the scheme are endless, and it indeed provides financial security along with economic opportunity with low interest and easy return. In the case of non-individual enterprises, 51% of the total stakeholder must be the applicant. 

The composite loan inclusive of term loan and working capital is between 10 lakhs and up to 100 lakhs. 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 apply if the borrower’s contribution along with convergence support from any other schemes exceeds 15% of the total project cost. 

The interest rate would be the lowest applicable rate of the bank for the category. The applicant can pay back the loan within years, with a maximum moratorium period of 18 months.

For withdrawal of working capital up to 10 lakhs, the bank is to issue a Rupay Debit Card to the borrower. For working capital limit above 10 lakhs to be sanctioned by way of Cash Credit limit. 

The Stand Up India Ecosystem is currently a large network with 100000+ banks, 17000+ helping centres, 193302 sanctioned applications, Rs. 43541.75 sanctioned amount, and 24613 handholding agencies working with the Government of India shaping dreams of a million.

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