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Since the inception of the Scheme six years back, it has sanctioned loans to over 1,33,995 accounts as on 21.03.2022

The government of India formed the Credit Guarantee Fund for Stand Up India (CGFSI) to extend collateral-free coverage

Apart from providing credit facilities, the Stand Up India Scheme also envisages extending handholding support to the potential borrowers.

The scheme helps to make significant strides towards building an Atmanirbhar Bharat

It also provides for convergence with Central/State Government schemes. Applications under the scheme can also be made online at (www.standupmitra.in) portal.

New Delhi, NFAPost: As the country celebrates the sixth anniversary of Stand Up India Scheme, Union Finance & Corporate Affairs Minister Nirmala Sitharaman said the scheme sanctioned Rs. 30160 crore to 133,995 accounts up to 21.03.2022 since inception of the scheme.

Stand up India Scheme was launched on 5th April 2016 to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation, recognising the challenges faced by aspiring entrepreneurs, particularly women and Scheduled Castes (SCs), Scheduled Tribes (STs) .

In 2019-20, the Stand Up India scheme was extended for the entire period coinciding with the 15th Finance Commission period of 2020-25.

Union Finance & Corporate Affairs Minister Nirmala Sitharaman said during 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.

“More than 1 lakh women promoters have benefitted from this ccheme 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,” said Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

As more and more beneficiaries from the underserved segments of entrepreneurs are targeted for coverage, Union Finance & Corporate Affairs Minister Nirmala Sitharaman said India would make significant strides towards building an Atmanirbhar Bharat.

Achievements of this Scheme as on 21.03.2022

As India is growing rapidly, the Union Minister also pointed out that 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,” said Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

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, agriclinic 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, the Government of India has set up the Credit Guarantee Fund for Stand Up India (CGFSI). Apart from providing credit facilities, the 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.

Total number of SC/ST and Woman borrowers benefited under Stand Up India scheme, as on 21.03.2022 are as below:

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