Sixth Anniversary of Stand Up India

In News 

• Recently, the 6th anniversary of the Stand Up India scheme is being celebrated. 

Stand Up India scheme 

• About:
  • The Stand Up India scheme was launched on 5th April 2016. 
  • 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)
• Objectives:
  • To promote entrepreneurship amongst women, SC & ST category. 
  • To provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture.
• Eligibility:
  • SC/ST and/or women entrepreneurs; above 18 years of age                                                                                                  
  • Loans under the scheme are available for only greenfield projects. 
    • GreenField  signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector                                                                                                                                                                                            
  • In case of non-individual enterprises, 51% of the shareholding and controlling stakes should be held by either SC/ST and/or Women Entrepreneur.                                                                                                                                                    
  • Borrower should not be in default to any bank or 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 a minimum of 10 % of the project cost as own contribution.
• Facilitates Bank Loans:
  • The Stand Up India Scheme facilitates bank loans between 10 lakh and 1 crore to at least one scheduled caste (SC) or Scheduled Tribe, borrower and at least one woman per bank branch for setting up a greenfield enterprise.
  • Apart from linking prospective borrowers to banks for loans, the online portal developed by SIDBI for Stand Up India Scheme is also providing guidance to prospective entrepreneurs.
• Changes Accomodated:
  • The Union Finance Minister in the Budget speech FY 2021-22 announced certain changes: 
    • 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’.
  • To extend collateral free coverage, the Government of India has set up the Credit Guarantee Fund for Stand Up India (CGFSI). 

Source:PIB