Stand Up India Scheme

5-Apr-2022: More than Rs 30,160 crore loans sanctioned to over 1,33,995 accounts under Stand-Up India Scheme in 6 years

As we celebrate the sixth anniversary of Stand Up India Scheme, let us take a look at how this scheme has fulfilled the aspirations entrepreneurs, particularly women and Scheduled Castes (SCs), Scheduled Tribes (STs) and also sift through the achievements, salient features and enhancement to the scheme over the years.

Recognizing the challenges faced by Aspiring SC, ST and women entrepreneurs, Stand up India Scheme was launched on 5th April 2016 to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation. In 2019-20, the Stand Up India scheme was extended for the entire period coinciding with the 15th Finance Commission period of 2020-25.

On the occasion, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman said, “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.”

Smt. Sitharaman further said, “More than 1 lakh women promoters have benefitted from this Scheme during its six years of 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 Finance Minister added.

As India is growing rapidly, hopes, aspirations and expectations of a large group of potential entrepreneurs, particularly women and Scheduled Castes (SCs), Scheduled Tribes (STs), are rising. They want to set up an enterprise of their own to allow themselves to thrive and grow. Such entrepreneurs are spread across country and are bubbling with ideas on what they can do for themselves and their families. The scheme envisages to facilitate the dreams of aspiring SC, ST and women entrepreneurs to reality by supporting their energy and enthusiasm and removing many hurdles from their path.

As we celebrate the sixth anniversary of Stand Up India Scheme, let us take a look at the features and achievement of this Scheme.

The objective of Stand-Up India is to promote entrepreneurship amongst women, Scheduled Castes (SC) & Scheduled Tribes (ST) categories, to help them in starting a greenfield enterprise in manufacturing, services or the trading sector and activities allied to agriculture.

The purpose of Stand-Up India is to:

promote entrepreneurship amongst women, SC & ST category;
provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture;
facilitate bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks.

Why Stand-Up India?

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 endeavors 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. The scheme, which covers all branches of Scheduled Commercial Banks, will be accessed in three potential ways:

Directly at the branch or,
Through Stand-Up India Portal (www.standupmitra.in) or,
Through the Lead District Manager (LDM).

Who all are eligible for a loan?

SC/ST and/or women entrepreneurs, above 18 years of age;
Loans under the scheme are available for only green field projects. Green field signifies; in this context, the first time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture;
In case of non-individual enterprises, 51% 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 ‘upto 15%’ margin money which 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 shall be required to bring in minimum of 10 % of the project cost as own contribution.

Handholding Support: Apart from linking prospective borrowers to banks for loans, the online portal www.standupmitra.in developed by Small Industries Development Bank of India (SIDBI) for Stand Up India Scheme is also providing guidance to prospective entrepreneurs in their endeavour to set up business enterprises, starting from training to filling up loan applications, as per bank requirements. Through a network of more than 8,000 Hand Holding Agencies, this portal facilitates step by step guidance for connecting prospective borrowers to various agencies with specific expertise viz. Skilling Centres, Mentorship support, Entrepreneurship Development Program Centres, District Industries Centre, together with addresses and contact number.

Changes to Stand Up India Scheme

Pursuant to an announcement by the Union Finance Minister in the Budget speech FY 2021-22, the following changes have been made in the Stand Up India Scheme:-

The extent of margin money to be brought by the borrower has been reduced from ‘upto 25%’ to ‘upto 15%’ of the project cost. However, the borrower will continue to contribute at least 10% of the project cost as own contribution;
Loans for enterprises in ‘Activities allied to agriculture’ e.g. pisciculture, beekeeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, dairy, fishery, Agri clinic and agribusiness centers, food & agro-processing, etc. (excluding crop loans, land improvement such as canals, irrigation, wells) and services supporting these, shall be eligible for coverage under the Scheme.

To extend collateral free coverage, Government of India has set up the Credit Guarantee Fund for Stand Up India (CGFSI). Apart from providing credit facility, Stand Up India Scheme also envisages extending handholding support to the potential borrowers. It also provides for convergence with Central/State Government schemes. Applications under the scheme can also be made online at (www.standupmitra.in) portal.

20-Jul-2021: Stand Up India Scheme extended up to the year 2025

Key Highlights:

Stand Up India Scheme was launched by the Prime Minister on 05th April, 2016 and extended up to the year 2025.
Stand Up India Scheme facilitates loans to Scheduled Caste, Scheduled Tribe and women borrowers.
A total of 1,16,266 loans amounting to Rs. 26204.49 crore extended under the Scheme since inception.
Margin Money requirements for Scheme loans reduced in the Budget Speech for FY 2021-22
Activities allied to agriculture included in the Scheme in the Budget Speech for FY 2021-22.

As informed by the Department of Financial Services, Ministry of Finance, the Stand Up India Scheme was launched by the Prime Minister on 05th April, 2016 and has been extended up to the year 2025. The objective of the Stand Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a green field enterprise in manufacturing, services or trading sector. As on 28.06.2021, a total of 1,16,266 loans amounting to Rs. 26204.49 crore have been extended under the Scheme since inception.

Pursuant to an announcement made by the Finance Minister in the Budget Speech for F.Y.2021-22, the margin money requirement for loans under the Scheme has been reduced from 'upto 25%' to `upto 15%' and activities allied to agriculture have been included in the Scheme. Apart from this, no other change is contemplated in the scheme.

Government does not allocate funds for loans under the Stand Up India Scheme. Loans under the Scheme are extended by SCBs as per commercial parameters, Board approved policies of respective banks and extant RBI guidelines. An amount of Rs. 500 crore each was however released by Government in FY 2016-17 and FY 2017-18 and Rs 100 crore in FY 2020-21 towards the corpus of Credit Guarantee Fund for Stand Up India (CGFSI).

The Government has taken various steps towards effective implementation of the Scheme, these, inter alia, include provision for submission for online applications by potential borrowers through www.standupmitra.in portal, hand-holding support, intensive publicity campaign, simplified loan application form, Credit Guarantee Scheme, convergence with State and Central government Schemes wherever feasible, reduction in margin money and inclusion of activities allied to agriculture etc.

4-Apr-2021: More than Rs 25,586 crore sanctioned to over 1,14,322 accounts by the Banks under Stand-Up India Scheme in 5 years

India is growing rapidly. Hopes, Aspirations and Expectations are rising. There is a large group of potential entrepreneurs particularly women and Scheduled Caste (SC), Scheduled Tribes (ST) who want to set up an enterprise of their own, which allows them to grow and thrive. Such entrepreneurs are spread across country and are bubbling with ideas on what they can do for themselves and their families.

Aspiring SC, ST and women entrepreneurs are energetic and enthusiastic but may face challenges in converting their dream to reality. Recognizing these challenges, Stand up India Scheme was launched on 5th April 2016 to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation. This scheme has been extended up to the year 2025.

As we celebrate the fifth anniversary of Stand Up India Scheme, let us take a look at the features and achievement of this Scheme.

The objective of Stand-Up India is to promote entrepreneurship amongst women, Scheduled Castes (SC) & Scheduled Tribes (ST) categories, to help them in starting a greenfield enterprise in trading, manufacturing and services sector, by both ready and trainee borrowers.

The purpose of Stand-Up India is to:

promote entrepreneurship amongst women, SC & ST category.
Provide loans for setting up greenfield enterprises in manufacturing, services or the trading sector & activities allied to agriculture by both ready and trainee borrowers
facilitate bank loans between Rs.10 lakh to Rs.1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks

Why Stand-Up India?

Directly at the branch or,
Through Stand-Up India Portal (www.standupmitra.in) or,
Through the Lead District Manager (LDM).

Who all are eligible for a loan?

SC/ST and/or women entrepreneurs, above 18 years of age.
Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing, services or the trading sector & activities allied to agriculture
In case of non-individual enterprises, 51% 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.

Achievements of this Scheme as on 23.03.2021

Rs. 25,586 crore has been sanctioned under Stand Up India Scheme to over 1,14,322 accounts upto 23.03.2021 since inception of the Scheme.

9-Mar-2021: Implementation of ‘Stand Up India’ Scheme

The ‘Stand Up India Scheme’ was launched by the Prime Minister on 5thApril, 2016 and has been extended upto the year 2025 as informed by the Department of Financial Services, Ministry of Finance. The objective of the Stand Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services or trading sector. As on 02.03.2021, a total of 1,11,619 loans amounting to Rs. 24985.27 crore have been extended under the Scheme since inception

Pursuant to an announcement made in the Finance Minister's Budget Speech for F.Y. 2021-22, the margin money requirement for loans under this has been reduced from 'upto 25%' to 'upto 15%' and activities allied to agriculture have been included in the Scheme.

Government does not allocate funds for loans under the Stand Up India Scheme. Loans under the Scheme are extended by SCBs as per commercial parameters, Board approved policies of respective banks and extant RBI guidelines. An amount of Rs. 500 crore each was however released by Government in FY 2016-17 and FY 2017-18 and Rs. 100 crore in FY 2O2O-21 towards the corpus of the Credit Guarantee Fund for Stand Up India (CGFSI).

The Government has taken various steps towards effective implementation of the Scheme. These, inter alia, include provision for submission for online applications by potential borrowers through www.standupmitra.in portal, handholding support, intensive publicity campaigns, simplified loan application form, Credit Guarantee Scheme, convergence with State and Central Government Schemes wherever feasible, reduction in margin money and inclusion of activities allied to agriculture etc.

8-Mar-2021: More than 81% account holders are Women under Stand Up India Scheme

Ministry of Finance, in the past seven years has launched various Schemes which have special provisions for empowerment of women. These Schemes have financially empowered women to lead a better life and chase their dreams of being an entrepreneur.

As we are celebrating International Women’s Day , today , on 8th March 2021, we take a look at various schemes initiated by the Ministry of Finance which have benefitted the women in India.

Stand-Up India Scheme - Stand Up India Scheme was launched on 5 April 2016 to promote entrepreneurship at grass root level for economic empowerment and job creation. This scheme seeks to leverage the institutional credit structure to reach out to the underserved sector of people such as Scheduled Caste, Scheduled Tribe and Women Entrepreneurs so as to enable them to participate in the economic growth of nation.

The objective of this scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch of SCBs for setting up a Greenfield enterprise.

As on 26.02.2021, more than 81% i.e., 91,109 accounts with an amount of Rs. 20,749 crore have been sanctioned to women entrepreneurs under Stand Up India Scheme.

Pradhan Mantri MUDRA Yojana (PMMY) - PMMY was launched on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.

Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

As on 26.02.2021, about 68% i.e., 19.04 crore accounts with an amount of Rs. 6.36 lakh crore have been sanctioned to women entrepreneurs under MUDRA scheme since inception.

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - PMJDY was launched on 28th August 2014. It envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension.

As on 24.02.2021, 23.21 crore accounts, out of the total 41.93 crore accounts opened under the scheme belong to women account holders.

17-Mar-2020: More than Rs 20,000 crores of loans sanctioned under Stand Up India Scheme since inception

Rs 20,466.94 crores of loans have been sanctioned under Stand Up India Scheme to over 91,000 accounts upto 10.03.2020 since inception of the Scheme.

Stand Up India Scheme was launched by the Government on 5th April, 2016. The Scheme facilitates bank loans between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower, per bank branch of Scheduled Commercial Banks (SCBs), for setting up greenfield enterprises in the manufacturing, services or the trading sectors.