Stand up India Scheme - Egniol 1

Stand Up India Scheme – Benefits, Features & Eligibility Criteria

Stand Up India Scheme

The government of India created the Stand Up India scheme to provide funding for women business owners and those from the Scheduled Castes and Scheduled Tribes. The primary motivation for this funding comes from the government’s desire to encourage business ownership among women and members of the SC/ST community. A greenfield business loan between 10 lakhs and 1 crore is approved for at least one Scheduled Caste and one Scheduled Tribe individual at each bank branch.

Entrepreneurs have the option of starting businesses in a wide variety of fields, such as production, agriculture, services, and commerce. If the business is owned by a corporation, at least 51% must be held by a member of a socially and economically disadvantaged group or by a woman. 

Stand Up India Scheme's Key Features

On April 5th, 2016, Indian Prime Minister Narendra Modi unveiled the Stand Up India Scheme. The goal of the programme is to provide low-interest loans to people of SC/ST origin and women across the country so that they can start their own businesses.

Features of the Stand-Up India Program include

  • The scheme was launched by the Indian government’s Ministry of Finance to boost the country’s start-up culture.
  • The range of the Stand-Up India loan is 10 lakhs to 1 crore. This loan amount also includes the essential working capital for launching a firm.
  • A single bank branch can sponsor at least two entrepreneurial endeavours. One project must belong to a member of the SC/ST caste, and the other to a woman entrepreneur.
  • To withdraw the credit amount, the government gives entrepreneurs with Rupay Cards.
  • The bank maintains a complete record of the loan’s utilisation to guarantee that the funds are solely utilised for business objectives and not for personal ones.
  • In addition to providing the loan, the government also provides pre-loan training in marketing, factoring, and loan facilitation.
  • The Stand-Up India portal is also designed to facilitate online registration for the programme and to offer additional support services.
  • Applicants for the Stand-Up India Loan are given information about online platforms, web entrepreneurship, e-marketing, registration, and factoring.

Eligibility for the Stand Up India Scheme

Eligibility for the Stand Up India Scheme - Egniol

Candidates who wish to apply for the Stand Up India Scheme subsidy must be aware of the eligibility requirements in order to avoid future complications. The primary eligibility requirements for the Stand Up India Scheme are as follows:

  • The applicant for a loan from Stand-Up India must be at least 18 years old.
  • The willing entrepreneur must be a member of a SC/ST tribe or a woman.
  • The company must be a private enterprise, partnership, or limited liability partnership.
  • The company’s annual revenue must not exceed 25 crores.
  • The financing must be used for greenfield initiatives, meaning the entrepreneur must be launching a brand-new venture in the service or manufacturing industry.
  • The business must deal with new and marketable consumer products.
  • The applicant must not have defaulted on any bank or NBFC obligations.
  • The bank-approved loan must be insured by the Credit Guarantee Fund Scheme or secured with collateral.

What is the objective of Stand Up India Scheme?

New industries are currently only a source of hope for already-established urban areas. If this program goes into effect, however, it will stimulate new industrial activity in the country, benefiting 2.5 lakh people and 1.25 locations annually.

Even though it was done in the name of the poor, nationalising banks meant that roughly 40% of the people still lacked access to banks throughout the first 70 years after independence.

The idea is to extend credit and funding to regular people as well as corporations.

Benefits of the Stand Up India Scheme

Benefits of the Stand Up India Program - Egniol

The citizens of India are the primary beneficiaries of the government’s Stand Up India Scheme, as is the case with every government programme. Several positive outcomes would result from implementing the Stand Up India Scheme.

  • The initiative’s primary objective is to support and inspire young entrepreneurs so as to reduce unemployment.
  • If you are an investor, Stand Up India Scheme provides the appropriate platform where you may obtain professional guidance, time, and legal understanding. A further advantage is that they would support you with the launch of your business for the first two years.
  • They also give consultants with post-installation assistance.
  • In addition, businesses do not have to worry as much about how they will repay the loan because they have seven years to do it, which minimises the burden of payback for the borrowers. However, a specified sum must be repaid annually according to the borrower’s preference.
  • This program will also assist in removing legal, operational, and other institutional impediments for enterprises.
  • It might be a very beneficial boost for employment development, resulting in the socioeconomic empowerment of Dalits, tribals, and women.
  • It may also serve as the impetus for other government initiatives, such as “Skill India” and “Make in India.”
  • It will help safeguard India’s demographic dividend.
  • With access to bank accounts and technical knowledge, these social strata will achieve financial and social inclusion.

Our country is experiencing an employment crisis. India has experienced a significant surge in unemployment. Only developed cities receive support for the establishment of new industries. Mr. Narendra Modi, the prime minister of India, devised the Stand-Up India initiative to boost entrepreneurship among women and SC/ST category individuals.

The intention is to provide funding not only to huge institutions, but also to the average citizen. The interest rate on approved loans is the absolute minimum that banks are able to give. As the loan has a lengthy repayment duration and a lengthy moratorium, it is simple to repay. The lengthy payback time decreases the borrowers’ worry. You must maintain minimal security against the approved loan. If you are an investor, you should apply for a stand-alone loan subsidy because it provides numerous benefits to the average individual.

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