By Rupin Chopra and Apalka Bareja
In order to promote entrepreneurship at the grass-root level, especially amongst women, Scheduled Castes (SC) and Schedules Tribes (ST), the government of India launched the Stand Up India Scheme[1] on April 05, 2016.
The scheme aims at providing people belonging to SC, ST, or women a loan between Rs. 10 lakhs to Rs. 1 crore on the basis of their requirement. Based on recognition of the challenges they face in setting up enterprises, obtaining loans and other support needed from time to time for succeeding in business, the scheme aspires to provide and create an ecosystem which facilitates to provide a supportive environment for doing business.
KEY HIGH LIGHTS OF STAND UP INDIAN SCHEME
- The Scheme is a part of an initiative by the Department of Financial Service (DFS), Ministry of Finance to promote entrepreneurial projects.[2]
- The scheme is a composite loan that is inclusive of term loan and working capital loan.
- The scheme is expected to cover 85% of project costs at the lowest applicable interest rate of the bank for that category that is well within (base rate*MCLR+ 3% + tenor premium).
- The loan can be repaid over seven years.
- The scheme offers a moratorium period of up to 18 months.
- The designation of Stand up Connect Centres (SUCC) is provided to SIDBI and National Bank of Agriculture and Rural Development (NABARD).
- For a loan amount of up to Rs. 10 lakh, the sum will be sanctioned by way of overdraft. A RuPay debit card will be issued to access the funds conveniently. For a loan amount above Rs. 10 lakh, the sum will be sanctioned in the form of the cash credit limit.
- The people who apply for this scheme will be familiarized with the online platforms and other resources of e-marketing, web-entrepreneurship, factoring service and registration.
ELIGIBILITY FOR SCHEME[3]
- SC/ST and/or woman entrepreneurs, above 18 years of age.
- Loans under this scheme is available for only green field project[4].
- In case of non- individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrower should not be in default to any bank/financial institution.
OTHER BENEFITS OF STAND UP INDIA SCHEME
In order to ensure that the new entrepreneurs get the guidance to set up their business enterprise, Standup India scheme provides handholding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filing, work shed/utility support services, subsidy schemes etc.
The portal therefore facilitates by providing step by step guidance for connecting to various agencies with specific expertise viz. skilling centers, Mentorship support, Entrepreneurship Development Program Centers, District Industries Centre.
CONCLUSION
The Stand Up India scheme is undoubtedly a positive initiative taken up by the government to promote economic entrepreneurship at grass root level and a step towards uplifting the people of our society and being more self-sufficient. The facilitation and support provided by the Stand Up India Ecosystem is what has led the first time ventures to take a step forward.
[1] https://www.standupmitra.in/Home/SUISchemes
[2] https://www.standupmitra.in/Home/SchemeGuidelines
[3] https://www.standupmitra.in/Home/SUISchemes
[4] A greenfield enterprise is one where new infrastructure will be built on unused land, i.e. no demolition or remodelling of an existing structure will be involved
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