The Stand up India Scheme helps women entrepreneurs and persons from the SC/ST communities get finance. The Government of India launched the standupmitra to give financial services to people in the SC/ST category.
The primary goal of this initiative is to assist banks in providing loans ranging from Rs. 10 lakhs to Rs. 1 crore to at least one SC/ST applicant and one female entrepreneur each bank branch, allowing them to start their own business or venture.
All components of India’s scheduled commercial banks will participate in the stand-up India portal. This program’s primary goal is to offer funds to businesses in the service, manufacturing, and trading sectors.
A woman borrower or an individual from the sc/st subsidy loans community could possess at least 51 percent of the controlling and shareholding position in a non-individual firm.
The Stand-up India Scheme gives bank loans to individual Scheduled Caste (SC) or Scheduled Tribe (ST) borrowers and woman borrowers every bank branch to establish a Greenfield business. This company could be in the manufacturing, service, or trading industries.
The following are the areas of focus for Stand-up India implementation:
Scheduled Commercial Bank (SCB) branches in the district are sanctioning and disbursing an increasing number of loans to women and SC/ST enterprises.
We are increasing and responding to potential borrowers’ queries via the Standup Mitra portal.
Connecting potential borrowers’ demands with the relevant hand-holding entities
Following the approval of loans, hand-holding celebrations are held.
Bringing stand up India loans into line with the existing government of India or state government initiatives
Adopting novel approaches to the Scheme’s implementation
Ensure transparency and accountability in the Scheme’s implementation
Stand-Up India for SC/ST and Women Entrepreneurs Financing
India’s Small Industries Development Bank (SIDBI)
The standup Mitra supports at least one scheduled caste (SC) or scheduled tribe and one lady at the most minor. Every bank branch set up a greenfield firm with bank credits varying from ten lakh to one crore.
This company could be in the manufacturing, service, or trading industries. In non-individual firms, at least 51 percent of the shareholding and managing stake should be held by an SC/ST loan or a woman entrepreneur.
Replication Best Practices
Table of Contents
Following are some examples of successful practices
Borrowers from the targeted population are being held in the palm of their hands.
The Chief Minister’s (CM) helpline has been established so that recipients can speak directly with the CM’s Office about their issues (Burhanpur, Madhya Pradesh).
The efforts of bank staff to assist customers in the beginning when they apply to the web or through an offline route.
Efforts are being made to give accurate information and assist the borrower with financial planning and drafting a business plan and after the loan has been disbursed. Officials from the bank and other implementing agents ensure that the borrower receives assistance as soon as possible.
Coordination between implementing units that is effective
Because banks and their branches will administer the Scheme, it is critical that all parties involved, including SIDBI, LDMs, and bank officials, are on the same page, understand the complexities of standup India scheme, and collaborate effectively make it a success.
Successful districts and bank branches can sanction loans that go above and above the minimum mandate. Through efficient coordination, entrepreneurship among women and SC/ST populations is boosted in such success stories.
Suggestions for a Successful Launch
- Because bank officials were unaware of the Scheme’s contents, they were hesitant to grant loans to a more significant number of people. Officials are also hampered in their ability to sanction loans due to a lack of desire and incentives. To get beyond this stumbling block, banks should be rewarded for motivating and rewarding authorities and banks that make many disbursements while providing due diligence.
- All program stakeholders should be informed about the program through workshops and training so that banks and beneficiaries know the procedure and loan disbursement is as smooth as possible.
- Investing in IEC programs and create a general sense of awareness that reaches the target recipient. In addition, the target recipients should be encouraged and assisted in using these services. Building success stories in all geographical locations are also critical for promoting to the public.
- There is also a lack of effort to bring other schemes into line. The broader goal is to enable people to start their businesses, and various plans are needed to reach the public. Women and SC/ST communities’ benefit from the Standup India Scheme. Stand-up India can take advantage of MUDRA and other inquiries to reach out to those interested in taking out loans to establish their businesses. There is currently little coordination in implementing Startup India, MUDRA, Stand-up India, and others.
- It is critical that there are both physical and virtual facilitation centers where individuals may come with their ideas and goals and find the perfect system that meets their needs. In essence, this would aid in the convergence of schemes and boost beneficiary coverage.
Characteristics of the Standup India Program
- The appropriate interest rate is set by the preferred bank for that category, which cannot exceed MCLR + 3% + Tenor Premium.
- For SC/ST individuals and women, the minimum age to apply for a loan under the Standup scheme is 18 years.
- Loans are only available for Green Field Projects, which are businesses starting in the manufacturing or trading sectors for the first time.
- The applicant should not have ever defaulted on a loan with a bank or a non-bank financial institution.
- A composite loan (which contains a term loan and working capital) is available in amounts ranging from Rs. 10 lakh to Rs. 1 crore.
- Loans may be secured by collateral/security or a Credit Guarantee Fund Scheme guarantee, depending on the bank’s decision.
- SC/ST and women entrepreneurs can only use loans to start new businesses in the trading, service, and manufacturing sectors.
- Maximum repayment length is seven years, with a maximum moratorium period of 18 months.
- The Standup India Scheme does not provide any financial assistance.
- Rate of Interest: (Base Rate + MCLR + 3% + Tenor Premium)
- The minimum loan amount is Rs. 10 lakh, with a maximum loan amount of Rs. 1 crore.
- Repayment Period: Up to 7 years, with an 18-month moratorium period.
- Credit Guarantee Scheme for Stand-up India Loans requires collateral as primary security or guarantee (CGFSIL)
How do I apply for a loan under the Standup India program?
To apply for loans through Standup India, applicants must go to their nearest bank branch and inquire if a 1-person quota for SC/STs or one woman entrepreneur per bank branch is available.
If so, they can apply for a loan under the Standup India scheme by filling out the application form and submitting it with the relevant papers. Download the application form from standupmitra, in or the standup India webpage.
Criteria for Eligibility
- SC/ST or women entrepreneurs must be at least 18 years old.
- Only Greenfield Projects are eligible for a loan.
- In the case of a non-individual enterprise, at least 51 percent of the shareholding post must be held by either an SC/ST or a woman entrepreneur.
- The applicant must have never defaulted on a previous loan (s)
How to Apply for the Standup India Scheme
Step 1: Go to the official website of Stand-up India (https://www.standupmitra.in/Login/Register).
Step 2: Complete the registration form by first providing the business address, as well as the state, district, village, town, city, and pin code.
Step 3: Determine whether the promoter is a woman who owns 51 percent or more of the company and whether the champion belongs to the SC/ST group.
Step 4: Next, the applicant can choose the type of business they want to start, the loan amount they want, the nature and description of their business activity, the status of their business space, and if they are a first-time entrepreneur from a drop-down menu.
Step 5: They must also describe their previous business experience, including commercial activity, years of experience, and the kind of the business.
Step 6: Select the desired hand-holding support based on your needs and interests.
Step 7: The applicant’s personal information, including name, business name, user name, phone number, email address, and kind of constitution, is the last and final registration step.
Step 8: After selecting Register, the candidate will be able to apply for the Standup India scheme with the appropriate financial institution, and their representatives will contact them for further details.
Documentation is required
- Passport-sized photographs and a fully completed application form
- Passport, driver’s license, voter’s ID card, PAN card, and other forms of identification are acceptable.
- Voter ID card, passport, current electricity and telephone bills, property tax receipt, and so on are all acceptable forms of proof of residency.
- Proof of business address
- The partners’ deed of partnership
- a copy of the lease deeds or a copy of the rental agreement
- Association balance sheets for the previous three years
- Statement of the promoters’ and guarantors’ assets and liabilities
- Any other documents that the bank requires
- Stand-up India has always been a proponent of economic empowerment and the creation of jobs. The Scheme is expected to assist at least 2.5 lakh borrowers via 1.25 lakh bank branches.
Women Getting Push
In the earlier days, women were never considered to be good entrepreneurs. Rather women were never even promoted to even do work. The only job which women were allowed to have was of being a house wife, which by the way is an excellent job which requires full time attention with no breaks. However, slowly and surely women started getting educated, and that is how the progress of economy started growing.
The biggest push has been the government, to help women work, progress and grow exponentially. Hence, if we say in today’s time, women are doing really well. But the problem still lies here – That is the private sector is still accepting women. However, it is the middle class and high-income group women who are doing well, but what about the women from lower income group?
Women in the lower section groups are loaded with skills, but the problem is they do not have the capital, education and the right guidance to be able to get that push.
Through the scheme Stand Up India, as the name suggests, is for helping people stand up to their utmost potential and try and do justice to their talent. Through this woman will get financially independent, and then accordingly will do even better.
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