STAND UP INDIA SCHEME

Launch Year : - 2016 on the 125th birth anniversary of Dr. B. R. Ambedkar.

Ministry :- Ministry of Finance

Objective : 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 greenfield enterprise in Agri-allied activities manufacturing, services or trading sector.

Eligibility: - 

• SC/ST and/or women entrepreneur aged 18 years or above.
• In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
• Only green field project (first time venture)
• Borrower should not be in default to any bank/financial institution.

Salient Features :

• Government does not allocate funds for loans under the Stand Up India Scheme.
• Loans under the Scheme are extended by all the branches of the Scheduled Commercial Banks as per commercial parameters, Board approved policies of respective banks and extant RBI guidelines.
• An amount of Rs. 500 crore each was however released by Government in FY 2016-17 and FY 2017-18 and Rs. 100 crore in FY 2O2O-21 towards the corpus of the Credit Guarantee Fund for Stand Up India (CGFSI).
• The loan is repayable in 7 years with a maximum moratorium period of 18 months.
• The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed Bank’s base rate (MCLR) +3%+ tenor premium.
• Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
• The offices of SIDBI and NABARD are designated as Stand-up Connect Centers, who will arrange for the support required. SIDBI is a refinancing agency.
• It also provides for Creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).

Recent Changes :  

• The scheme has been extended upto the year 2025.
•  The margin money requirement for loans under this has been reduced from ‘upto 25%’ to ‘upto 15%’.
• Activities allied to agriculture have been included in the Scheme.