News highlights:
- To promote entrepreneurship at the grass root level, banks have sanctioned more than Rs 40,700 crore to over 1.80 lakh beneficiaries under Stand-Up India Scheme in seven years.
- The scheme aims to encourage all bank branches in extending loans to borrowers from SC, ST and women in setting up their own greenfield enterprises.
Stand Up India scheme:
- About
- The Stand Up India scheme aims at providing people belonging to the scheduled caste or scheduled tribe or women of the country a loan between Rs.10 lakhs to Rs.1 crore, based on their requirement.
- The aim is to promote entrepreneurship among them.
- Stand Up India Scheme was launched in April 2016.
- Eligibility Criteria
- The individual must be 18 years or above
- The company must be a private limited/LLP or a partnership firm.
- The turnover of the firm must not be more than 25 crores
- The entrepreneur should either be a woman or a person belonging to a scheduled caste or scheduled tribe category.
- The loan will only be provided to fund greenfield projects i.e., the project must be the very first one being undertaken under the manufacturing or service sector.
- The applicant must not a bank or any other Organisation’s defaulter.
- The company should be dealing with any commercial or innovative consumer goods. An approval of DIPP is also required for the same.
- Key Features
- The scheme is part of an initiative by the Department of Financial Services (DFS), Ministry of Finance to promote entrepreneurial projects.
- An amount ranging from Rs 10 lakhs to Rs.1 crore is to be provided as a loan, inclusive of working capital for setting up a new enterprise.
- The scheme states that each bank branch needs to facilitate two entrepreneurial projects on average. One for SC/ST and one for a woman entrepreneur.
- A RuPay debit card would be provided for the withdrawal of credit.
- The credit history of the borrower would be maintained by the bank so that the money is not used for any personal use.
- A web portal has been created to assist people with online registration and support services.
- Present Status of the Scheme:
- Under the Scheme, the Union government has approved Rs 40,710 crore to 1,80,636 accounts till March 21, 2023.
- More than 1.8 lakh female and SC/ST business owners have received loans.
- More than 80% of the loans issued under this scheme have been allocated to women.
Benefits of Stand Up India Scheme:
- Minimise unemployment
- The basic aim of the initiative is to provide encourage and motivate new entrepreneurs so as to minimise unemployment.
- If you are an investor, then Stand Up India gives you the right platform where you get professional advice, time, and knowledge about laws. Another benefit is that they would assist you in the start-up for the initial two years of your work.
- They also provide post-set-up aid to the consultants.
- Reduced stress of loan repayment:
- Moreover, another benefit for entrepreneurs is that they do not have to worry much about how to pay back the amount that they have taken for the loan as they need to pay back the loan in a span of seven years, which reduces the stress of repayment for the borrowers.
- However, a certain amount needs to be paid back each year as per the borrower’s choice.
- Eradicate obstacles:
- This scheme will help to eradicate legal, operational and other institutional obstacles for entrepreneurs as well.
- Socio-economic empowerment
- It can be a very positive boost in terms of job creation, leading to the socio-economic empowerment of Dalits, tribals and women.
- Advancement:
- It may also act as the driving force for other Government schemes like ‘Skill India’ and ‘Make in India’.
- It will help protect the demographic dividend in India
- With access to bank accounts and technological education, it will lead to financial and social inclusion of these strata of society.
Pic Courtesy: Freepik
Content Source: The Indian Express