The government has sanctioned Rs 40,710 crore under the Stand Up India Scheme to 1,80,636 accounts will March 21, 2023, according to an official statement released on the 7th anniversary of the scheme on Wednesday. The scheme aims to address the challenges faced by SC, ST and woman entrepreneurs in setting up enterprises, obtaining loans and other support needed from time to time for succeeding in business.
On the occasion, Union Finance and Corporate Affairs Minister Nirmala Sitharaman said, “It is a matter of pride and satisfaction for me to note that more than 1.8 lakh women and SC/ST entrepreneurs have been sanctioned loans for more than Rs 40,600 crore.”
She added that the scheme has created an eco-system which facilitates and continues to provide a supportive environment for setting up green field enterprises through access to loans from bank branches of all scheduled commercial banks.
“Stand-Up India Scheme has proved to be an important milestone in promoting entrepreneurship among SC, ST and women,” the finance minister said on the 7th anniversary of SUPI Scheme.
Union Minister of State for Finance Bhagwat Kisanrao Karad said, “The Stand Up India scheme is based on the third pillar of National Mission for Financial Inclusion namely ‘Funding the unfunded’. The scheme has ensured availability of seamless credit flow from branches of schedule commercial banks to SC/ST and women entrepreneurs. Scheme has been instrumental in improving the standards of living for entrepreneurs, their employees and their families.”
Karad added that more than 1.8 lakh entrepreneurs have benefitted from this scheme during past seven years. It is also a matter of immense pleasure for me that more than 80 per cent of loans given under this scheme have been provided to women.
What is Stand-Up India Scheme?
The Stand-Up India Scheme was launched on April 5, 2016, to promote entrepreneurship at the grassroot level focusing on economic empowerment and job creation. This scheme has been extended up to the year 2025.
The Stand-Up India scheme is designed to address 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 ecosystem which facilitates and continues to provide a supportive environment to the target segments in doing business. The scheme aims to encourage all bank branches in extending loans to borrowers from SC, ST and women in setting up their own greenfield enterprise.
Who Are Eligible For Loan Under The Stand Up India Scheme?
- 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 ‘up to 15 per cent’ margin money which can be provided in convergence with eligible central/ state schemes. In any case, the borrower shall be required to bring in minimum of 10 per cent of the project cost as own contribution.
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