Stand-Up India Scheme

The Stand-Up India Scheme was launched by the Ministry of Finance, Government of India, with the objective of promoting entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and Women Entrepreneurs. This initiative is part of the government’s broader vision to empower underrepresented communities by providing financial assistance for the creation of greenfield projects—new businesses—in various sectors such as manufacturing, services, trading, and agriculture allied activities.

The Stand-Up India Scheme aims to foster the spirit of entrepreneurship among marginalized groups by facilitating access to bank loans ranging from ₹10 Lakhs to ₹1 Crore. Through this scheme, the Government of India intends to enhance economic inclusion, provide financial independence to women, and promote employment opportunities in rural and underserved areas.

Objectives of the Stand-Up India Scheme

The primary objective of the Stand-Up India Scheme is to facilitate financial assistance to SC, ST, and Women entrepreneurs in order to set up new greenfield enterprises. This initiative is driven by the desire to create entrepreneurial opportunities for individuals from historically marginalized communities who may face barriers in accessing traditional credit from financial institutions. By providing loans with easier terms and access to hand-holding support, the scheme is designed to encourage new business ventures that can have a lasting impact on economic development.

The scheme is also aimed at:

• Providing composite loans to greenfield enterprises in sectors such as manufacturing, services, trading, and activities allied to agriculture.
• Ensuring that at least one SC/ST borrower and one woman borrower are given the opportunity to avail loans from each bank branch.
• Supporting non-individual enterprises where 51% of the shareholding and controlling stake is held by either an SC/ST person or a woman entrepreneur.
• Promoting economic inclusivity by enabling entrepreneurs from marginalized communities to gain financial independence.
• Creating employment opportunities in rural and semi-urban regions, thus contributing to the economic development of these areas.

Loan Details and Benefits

The Stand-Up India Scheme offers a composite loan package to eligible entrepreneurs. This package typically includes both working capital and term loans for business setup and operational expenses.

Loan Amount

The scheme provides loans within the range of ₹10 Lakhs to ₹1 Crore. This loan amount is designed to cover the costs of setting up a greenfield enterprise, including business equipment, raw materials, operational expenses, and working capital requirements. The loan amount is granted based on the nature and scope of the proposed business.

No Collateral Requirement

One of the key features of the scheme is the absence of collateral for loans up to ₹10 Lakhs. For loans exceeding ₹10 Lakhs, collateral may be required, depending on the nature of the loan and the financial institution’s policies. This feature ensures that even entrepreneurs with limited access to assets or financial backing can participate in the scheme and set up their businesses.

Rupay Debit Card

To facilitate easier access to the loaned amount, a Rupay debit card is issued to borrowers under the scheme. This card allows the entrepreneur to access their loan amount conveniently for business purposes, thereby ensuring that the loan is used for its intended purpose.

Hand-Holding Support

The Small Industries Development Bank of India (SIDBI) plays a pivotal role in providing hand-holding support to entrepreneurs applying for the Stand-Up India Scheme. The SIDBI portal offers access to various support services including:

• Training programs to enhance entrepreneurial skills.
• Skill development workshops to help entrepreneurs manage and grow their businesses.
• Mentoring services to guide new entrepreneurs in navigating the challenges of running a business.
• Assistance with project report preparation, application filing, and business plan development.
• Work shed/utility support services to ensure that entrepreneurs have access to the necessary infrastructure and facilities to run their businesses.
• Information on subsidy schemes and other government schemes that may help entrepreneurs in their business journey.

This hand-holding support ensures that entrepreneurs are not only provided with the financial resources they need, but also the tools and guidance to succeed.

Eligibility Criteria

The Stand-Up India Scheme is specifically targeted at SC, ST, and women entrepreneurs. The eligibility requirements are designed to ensure that the scheme effectively reaches the target groups.

1. Eligibility for SC/ST Applicants:
   • The applicant must belong to the Scheduled Caste (SC) or Scheduled Tribe (ST) category.
   • The applicant must be at least 18 years old.
   • The applicant should not have any outstanding loans or defaults with any bank or financial institution.
2. Eligibility for Women Applicants:
   • The applicant must be a woman entrepreneur.
   • The applicant must be at least 18 years old.
   • The applicant should not have any outstanding loans or defaults with any bank or financial institution.
3. Eligibility for Non-Individual Enterprises:
   • For non-individual enterprises (i.e., businesses set up as partnerships, private limited companies, etc.), at least 51% of the shareholding and controlling stake must be held by either an SC, ST, or woman entrepreneur.
4. Greenfield Enterprises:
   • The loan is provided for greenfield enterprises, meaning the business must be a new venture and not an existing or ongoing business.
5. Other Conditions:
   • The applicant must have a good business idea and demonstrate the ability to repay the loan.
   • The applicant must meet the bank’s criteria for lending and must be willing to follow the necessary procedures for applying for the loan.

Application Process

The application process for the Stand-Up India Scheme is designed to be simple and accessible. Entrepreneurs can apply for the scheme either online or by approaching a bank branch directly.

1. Online Application:
   • Entrepreneurs can visit the official Stand-Up India Portal Stand-Up India Portal.
   • On the portal, they need to register and provide business details such as the business location, category (SC/ST/Woman), the nature of the proposed business, and the loan amount desired.
   • The portal also allows the applicant to provide information about their business experience (if any), hand-holding support required, and personal details.
   • Once registration is complete, applicants are eligible to initiate the loan application process through the respective financial institution. The bank will contact the entrepreneur to complete the formalities.
2. Offline Application:
   • Applicants can also approach the nearest bank branch or Lead District Manager (LDM) to apply for the loan.
   • Banks will assist with loan application, documentation, and provide guidance on the loan process.

Documents Required

Applicants must provide several documents to prove their eligibility and support their loan application. The required documents include:

1. Proof of Identity:
   • Voter’s ID card, Passport, Driving License, PAN card, or signature identification from the applicant’s present banker.
2. Proof of Residence:
   • Recent telephone bills, electricity bill, passport, or voter’s ID card.
3. Business Address Proof:
   • Valid documents verifying the business address.
4. Non-Defaulter Certificate:
   • A certificate proving that the applicant is not in default with any bank or financial institution.
5. Company Documents:
   • For non-individual enterprises: Memorandum and Articles of Association of the company, Partnership Deed (if applicable).
6. Assets and Liabilities Statement:
   • Statement of assets and liabilities of promoters and guarantors along with income tax returns.
7. Rent Agreement:
   • If the business premises are rented, provide a Rent Agreement along with clearance from the Pollution Control Board (if applicable).
8. SSI/MSME Registration:
   • If applicable, provide SSI/MSME registration.
9. Collateral Documentation:
   • If offering assets as collateral, include lease deeds or title deeds for the properties.
10. Proof of SC/ST/Woman Status:
    • Documents verifying the SC/ST/Woman status of the applicant.

Conclusion

The Stand-Up India Scheme represents a significant step towards empowering SC, ST, and women entrepreneurs in India. By providing easy access to finance for greenfield projects, the scheme supports the growth of new businesses in rural and semi-urban areas. The financial assistance, coupled with hand-holding support from SIDBI, helps entrepreneurs navigate the complexities of starting and running a business. The initiative plays a crucial role in fostering economic inclusion, creating employment opportunities, and building self-reliance among marginalized communities.

This scheme is a vital tool in reducing disparities in access to resources and opportunities, contributing to a more inclusive and equitable economy. Through Stand-Up India, the government is empowering individuals to take charge of their entrepreneurial journey, creating a ripple effect that can lead to greater economic prosperity for marginalized groups in India.