Ministry: Ministry of Finance
About Scheme: Stand Up India Scheme was launched by the Prime Minister on 05th April, 2016 and has been extended up to the year 2025. The objective of the Stand Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a green field enterprise in manufacturing, services or trading sector.
Aim:
- To promote entrepreneurship amongst women, SC & ST category.
- To provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture.
- To facilitate bank loans between Rs.10 lakh and Rs.100 lakh to at least one Scheduled Caste/ Scheduled Tribe borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks
Eligibility for loans:
- SC/ST and/or women entrepreneurs, above 18 years of age.
- Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture.
- In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrowers should not be in default to any bank/financial institution.
Changes made in the Budget Speech of FY 2021-2022:
- The extent of margin money to be brought by the borrower has been reduced from ‘up to 25%’ to ‘up to 15%’ of the project cost. However, the borrower will continue to contribute at least 10% of the project cost as own contribution.
- Loans for enterprises in ‘Activities allied to agriculture’ e.g. pisciculture, beekeeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, dairy, fishery, agriclinic and agribusiness centers, food & agro-processing, etc. (excluding crop loans, land improvement such as canals, irrigation, wells) and services supporting these, shall be eligible for coverage under the Scheme.
To extend collateral free coverage, Government of India has set up the Credit Guarantee
Fund for Stand-Up India (CGFSI).
Other Important Schemes
