STAND UP INDIA – GOVERNMENT SCHEME
News: Amount
sanctioned under the Stand-Up India Scheme
What's in the news?
● To
promote entrepreneurship at a grass root level, nearly Rs. 40,700 crore funds
have been sanctioned by banks to over 1.8 lakh beneficiaries.
● The
scheme was launched on April 5, 2016.
Stand Up India Scheme:
Objective:
● The
objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least
one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman
borrower per bank branch for setting up a greenfield enterprise.
● This
enterprise may be in manufacturing, services, agri-allied activities or the
trading sector. 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.
Eligible beneficiaries:
● SC/ST
and/or woman entrepreneurs, above 18 years of age.
Nodal authority:
● The
scheme is part of an initiative by the Department of Financial Services (DFS), Ministry of Finance to promote
entrepreneurial projects.
Features:
● 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
the manufacturing, services, agri-allied activities or the trading sector.
● In
case of non-individual enterprises, 51% of the shareholding and controlling
stake should be held by either SC/ST and/or Women Entrepreneur.
● Borrower
should not be in default to any bank/financial institution.
Nature of Loan:
● Composite
loan (inclusive of term loan and working capital) between 10 lakh and
upto 100 lakh to set up a new enterprise in manufacturing, services,
agri-allied activities or the trading sector by SC/ST/Women entrepreneur.
● A
RuPay debit card would be provided for the withdrawal of credit.
Interest Rate and Repayment:
● Lowest
applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
● The
loan is repayable in 7 years with a maximum moratorium period of 18 months.