The Stand-Up India Scheme, launched by the Government of India, on 2016 scheme extended till 2025 aims to empower marginalized sections of society—specifically Scheduled Castes (SC), Scheduled Tribes (ST), and women—by providing financial assistance to start businesses.
This initiative is a part of the government’s broader agenda to promote economic inclusion and entrepreneurship among underrepresented groups. Here’s an in-depth look at the Stand-Up India Scheme for 2024.
Key Features of the Stand-Up India Scheme Target Group:
The scheme is open to SC/ST individuals and women entrepreneurs across India. Each bank branch is mandated to facilitate loans to at least one SC/ST and one woman borrower.
Loan Amount: Loans between Rs. 10 lakh and Rs. 1 crore are provided to eligible entrepreneurs, specifically for setting up new enterprises in the manufacturing, services, or trading sectors.
Interest Rate: The interest rate is competitive and generally set at the lowest applicable rate of the bank for that category, with a maximum cap set at the bank’s MCLR + 3%.
Repayment Period: Loans under this scheme come with a flexible repayment tenure of up to 7 years, with a moratorium period (initial period when repayments are not required) of up to 18 months.
Eligibility Criteria
Individual Entrepreneurs: Must be SC/ST or a woman entrepreneur over 18 years of age.
Type of Business: The business must be a greenfield enterprise (first-time venture in manufacturing, services, or trading).
Ownership: For non-individual enterprises, at least 51% of the shareholding should be held by an SC/ST or woman entrepreneur.
NOTED: The Non individuals already running their business are not eligible.
Process for Availing Stand-Up India Loans
Registration: Interested candidates can visit the Stand-Up India portal or approach their nearest bank branch.
Application: The application involves submitting a business plan and other necessary documents as per the bank’s requirements.
Approval and Disbursement: Banks conduct due diligence before approving and disbursing the loan.
For eligible candidates, this process is often streamlined through the portal.
Stand-Up India 2024 Updates
Recent updates emphasize streamlining the loan disbursal process further and expanding training programs. In 2024, banks are likely to intensify efforts to raise awareness, especially in rural areas, to encourage more SC/ST and women entrepreneurs to benefit from the scheme.