As the nation is witnessing the sixth anniversary of Stand Up India Scheme, the question arises is what has happened to this scheme.

Inquiry revealed that more than Rs 30,160 crore loans were sanctioned to over 1,33,995 accounts under Stand- Up India scheme during the past six years.

Aware of the challenges faced by aspiring SC,ST and women entrepreneurs, Stand- Up India scheme was launched on April 5, 2016. The aim was to promote entrepreneurship at grass root 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 15 th Finance Commission period of 2020-25.

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, 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.

Achievements of this Scheme as on 21.03.2022

• Rs. 30160 crore has been sanctioned under Stand Up India Scheme to 133,995 accounts upto 21.03.2022 since inception of the Scheme. 
• Total number of SC/ST and Woman borrowers benefited under Stand Up India scheme, as on 21.03.2022 are as below:                                                                                                                                              (Amt. in Rs. Crore)