What is Stand Up India?

What is Stand Up India? The Stand-Up India scheme is a government-backed initiative that aims to provide loans to aspiring entrepreneurs from Scheduled Castes (SCs), Scheduled Tribes (STs), and women. The scheme was launched on 5^th April 2016 by Prime Minister Narendra Modi. The scheme provides collateral-free loans of Rs.10 lakhs to Rs.1 crore, based on their requirement.

The scheme provides access to credit and financial assistance to these underprivileged sections of society and enables them to start new businesses and become self-reliant.

Eligibility Criteria for Stand Up India Scheme

1. Applicant must be SC/ST and/or women entrepreneurs, above 18 years of age.
2. Financial credit under the scheme is available for only green field projects which means that Applicants must have a new business idea that they want to start from scratch
3. 51% of the shareholding and controlling stake should be held by either SC/ST or Women Entrepreneurs if enterprises are not individual.
4. The Cibil score of the Applicant must be healthy means they should not be in default to any bank or financial institute.
5. Applicant must have a business plan that is feasible and scalable.

Purpose and Aim of the Stand Up India Scheme

1. Promote entrepreneurship among women, SC & ST category.
2. The aim of the scheme is to provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture.
3. The Stand Up India scheme aims to create employment opportunities by promoting entrepreneurship.

Benefits of the Stand Up India Scheme

1. The scheme provides collateral-free loans to eligible applicants which means they do not need to pledge any assets as security for the loan. 
2. The scheme offers a guarantee of up to 75% of the loan amount which reduces the risk for banks and financial institutions.
3. The scheme provides Skill development and training opportunities to the eligible applicants which helps to grow their business.
4. The entrepreneurs will be complete relaxation about the Capital Gain Tax.
5. Many entrepreneurs from marginalized communities rely on informal sources of credit which often come with high interest rates and exploitative practices. The Stand Up India scheme provides a formal and affordable credit option that reduces the dependence on informal lenders and promotes financial stability.

Challenges in the Stand-Up Scheme:

1. Lack of awareness about the scheme and its application process
2. The lack of bank branches in remote areas makes it difficult for individuals to avail of loans and access financial services under the scheme.
3. Women entrepreneurs face cultural and social barriers
4. Lack of family support poses challenges for women who wish to start their own businesses.

Fact & Achievements of Stand Up Scheme:

1. The Scheme extended up to 2025.
2. More than 81% of the accounts under the Scheme have been provided to women entrepreneurs.
3. In the last 7 years, more than Rs.40,710 crore has been sanctioned to 180,636 accounts under Stand-Up India Scheme.

FAQs on Stand Up Scheme

Q1. What is the repayment period for loans under the Stand-Up India scheme?

Ans- The repayment period for loans under the Stand-Up India scheme is up to 10 years.

Q2. What is the maximum loan amount that can be availed under the Stand-Up India scheme?

Ans- The Stand-Up India scheme offers loans of up to Rs.1 crore to eligible borrowers. The loan amount is disbursed in two tranches: a term loan of up to Rs.50 lakh and a working capital loan of up to Rs.50 lakh.

Q3. What is the interest rate on loans under the Stand-Up India scheme?

Ans- The interest rate on loans under the Stand-Up India scheme is 10.5% per annum.