Stand Up India Scheme

Stand up India scheme, as the name signifies the scheme primarily aims at making the country self-reliant and independent. The Stand-Up India Scheme is one of the prominent schemes that have been found to eliminate the difficulties that are mostly faced by SC, ST, and women entrepreneurs in setting up their businesses, applying for loans, and others. To develop an ecosystem that supports the growth of the business, this scheme applies to all Scheduled Commercial Bank branches. An individual who wishes to apply for the scheme can get assistance directly at the branch, through the Stand-Up India site, or through the Lead District Manager (LDM).

Why was Stand-Up India Scheme formulated?

The Stand-Up India Scheme was introduced by the Government of India and was launched by the Honourable Prime Minister of India Shri Narendra Modi in April 2016 to support and encourage entrepreneurship among women, and SC/ST communities. A sum of money is loaned to them to start their own business set up and become self-reliant. Furthermore, these communities are also the beneficiaries of some other schemes by the Government like Make in India, Industrial corridor, Dedicated Freight Corridor, Sagarmala, Bharatmala, and others.

Under the Stand-Up India Scheme, the scheduled caste, scheduled tribe, or women across the country are provided with a loan ranging between Rs. 10 lakhs to Rs. 1 crore depending upon the requirements of their business setup. The scheme gives a financial push to their businesses so that they can thrive in this ever-evolving market.

Eligibility for Stand-Up India Scheme :

• SC/ST and women entrepreneurs can apply for this scheme.
• The applicant must be of 18 years of age.
• Loans under this scheme are available for only green field projects.
• The individual signing up for this scheme should not be at fault with any bank or financial institution.

Documents Required :

• The application form should be duly filled out.
• Passport-sized photographs.
• ID Proof (PAN card, driving license, or passport)
• Residence proof (latest electricity bill or telephone bill)
• Business address proof
• Partnership deed of the partners
• Copies of lease deeds or Rent agreement
• Assets and liabilities statement of the promoters and guarantor

Highlights of the Stand-Up India scheme:

• The Stand-Up India scheme has been formulated with the sole purpose to promote entrepreneurial projects.
• Under the scheme, a loan between Rs. 10 lakh to Rs. 1 crore is provided to the applicant which is inclusive of the working capital.
• According to the scheme, a bank branch needs to facilitate two entrepreneurial projects on average for SC/ST and women entrepreneurs each.
• For the withdrawal of the credit, a RuPay debit card is provided.
• The bank maintains the credit history of the borrower such that the money is not used for any kind of personal use.
• There is also a web portal that is designed to help people with online registration and support services.

Let’s understand the Stand Up India Scheme with an example :

For example, in the withdrawal of working capital of up to 10 lakhs, the same may be sanctioned by way of an overdraft. Rupay Debit card to be issued for the convenience of the borrower. Working capital limit above Rs 10 lakh to be sanctioned by way of the cash credit limit. Women are said to be having excellent management skills along with proficiency in finance management.

Notably, women entrepreneurs today are doing a great job in the co-operative movement and self-help groups, and their contribution to the sector has been remarkable. The Stand Up India scheme though can provide an institutional framework and support services to ambitious women who are working day in and out to make a beginning in the manufacturing sector as well. Apart from this, this scheme also aims to make the SC/ST communities more independent, empowered, and self-reliant in the business sector. This is a good initiative from the Govt of India to transform the socio-economic architecture of rural and urban India, making sure no one is left behind in this walk toward development.

Bottom line :

Women are said to be having excellent management skills along with proficiency in finance management. Notably, women entrepreneurs today are doing a great job in the co-operative movement and self-help groups, and their contribution to the sector has been remarkable. The Stand-Up India scheme though can provide an institutional framework and support services to ambitious women who are working day in and out to make a beginning in the manufacturing sector as well. Apart from this, this scheme also aims to make the SC/ST communities more independent, empowered, and self-reliant in the business sector. This is a good initiative from the Govt of India to transform the socio-economic architecture of rural and urban India, making sure no one is left behind in this walk toward development.

Benefits of the Scheme:

• The benefits under this scheme are more for start-ups as compared to other companies.
• After filing the patent application form, the applicants will get an 80% rebate, but this can only be filled by the start-ups.
• The scheme aims at eradicating unemployment in the country.
• Stand Up India provides investors with a platform where they can get professional advice along with information on laws.
• Assistance is also provided in start-ups for the initial two years of the work.
• Stand Up India scheme encourages new entrepreneurs.
• It provides post-set-up aid to the consultants.
• This scheme is a powerful tool for the socio-economic empowerment of Dalits, tribals, and women.
• This will also help in protecting the demographic dividend in India.

Women are said to be having excellent management skills along with proficiency in finance management. Notably, women entrepreneurs today are doing a great job in the co-operative movement and self-help groups, and their contribution to the sector has been remarkable. The Stand-Up India scheme though can provide an institutional framework and support services to ambitious women who are working day in and out to make a beginning in the manufacturing sector as well. Apart from this, this scheme also aims to make the SC/ST communities more independent, empowered, and self-reliant in the business sector. This is a good initiative from the Govt of India to transform the socio-economic architecture of rural and urban India, making sure no one is left behind in this walk toward development.