Stand-Up India Scheme Extended, More than Rs. 40,700 Crore Sanctioned in Last 7 years

Stand-Up India Scheme: The initiative known as Stand-Up India was introduced with the aim of encouraging entrepreneurship among women, as well as individuals belonging to the Scheduled Castes (SC) and Scheduled Tribes (ST) categories. Stand-Up India Scheme is also important for UPSC Prelims Exam 2023 and UPSC Mains Exam (GS Paper 2- various government schemes for promoting entrepreneurship in the country).

Stand-Up India Scheme in News

Recently, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman informed about performance of the Stand up India Scheme. Due to its significant impact, Stand-Up India Scheme has been extended till 2025 by the Union government.

Stand-Up India Scheme Performance

The Stand-Up India scheme has been successful in providing financial support and assistance to the targeted communities, which has resulted in the creation of new job opportunities, businesses, and industries.

• 40,710 crore has been sanctioned under Stand Up India Scheme to 180,636 accounts up to 21.03.2023 since inception of the Scheme.
• More than 80% of loans given under the Stand up India scheme have been provided to women entrepreneurs.

Details of SC/ST and Woman beneficiaries of Stand Up India scheme, as on 21.03.2023, are below:

Stand-Up India Scheme

Stand-Up India initiative is a government scheme to encourage entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST)

• Background: The Stand up India Scheme was introduced on April 5th, 2016 in order to encourage entrepreneurship at the grassroots level, with a particular emphasis on promoting economic empowerment and generating employment opportunities for entrepreneurs from women/SC/ST Background.
• Mandate: Objective of the Stand-Up India Yojana is to provide assistance to Women/SC/ST entrepreneurs in establishing new businesses in the manufacturing, service, or trade sectors, including agricultural-related activities.
• Associated Ministry: The Stand-Up India Scheme is an initiative of the Ministry of Finance, Government of India.
• Scope: Under Stand-up India Scheme, support is provided for establishing new businesses in the manufacturing, services, trading, and agriculture-related sectors. 

Purpose of Stand-Up India Initiative

The most important purposes of the Stand up India scheme are listed below-

• Promote entrepreneurship amongst women, SC & ST category;
• Provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture;
• 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.

 Stand up India Funding Support Mechanisms

The Stand-Up India scheme is designed to address the challenges faced by SC, ST and women entrepreneurs in setting up enterprises, obtaining loans and other support needed from time to time for succeeding in business.

• The scheme therefore endeavors to create an ecosystem which facilitates and continues to provide a supportive environment to the target segments in doing business.
• The scheme aims to encourage all bank branches in extending loans to borrowers from SC, ST and women in setting up their own greenfield enterprise.
• The desiring applicants can apply under the scheme:
  • Directly at the branch or
  • Through Stand-Up India Portal (www.standupmitra.in) or,
  • Through the Lead District Manager (LDM).

Stand-Up India Initiative Significance

The Stand-up India Scheme is aligned with the third pillar of the National Mission for Financial Inclusion, which is “Funding the unfunded.” The scheme aims to provide seamless credit flow from branches of Scheduled Commercial Banks to women and entrepreneurs from SC/ST backgrounds.

• This has played a crucial role in promoting entrepreneurship and improving the living standards of entrepreneurs, their employees, and their families.
• The Stand-Up India Scheme has played a significant role in enhancing the living standards of entrepreneurs, their employees, and their families.
• The scheme has facilitated energetic, enthusiastic, and aspiring SC, ST and women entrepreneurs in converting their dream to reality.

Startup 20 Engagement Group of G20

Startup 20 Engagement Group of G20

Sharing is caring!