Stand Up India Scheme- Launch Date & Loan Subsidy 2024

The Stand Up India initiative is a significant government scheme aimed at empowering marginalized sections of society by facilitating their entry into entrepreneurship. Launched by the Government of India, this scheme focuses on providing financial assistance to Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs. The main goal is to support them in setting up new businesses, particularly in sectors like manufacturing, services, trading, and agriculture.

The Stand Up India scheme is designed to address the challenges faced by SC, ST, and women entrepreneurs in obtaining loans and starting businesses. Under this scheme, each branch of Scheduled Commercial Banks is mandated to offer loans ranging from ₹10 lakh to ₹1 crore. These loans are intended for setting up greenfield enterprises, which are new ventures in the eligible sectors. The Stand-Up India loan is crucial in promoting financial inclusion and economic empowerment among underrepresented communities.

The Stand Up India portal serves as a comprehensive resource for potential applicants, offering assistance in understanding the scheme, filling out the Stand-Up India application form, and applying for loans. The portal also provides detailed information about eligibility, documentation, and the application process.

Objectives

• To promote entrepreneurship among SC, ST, and women entrepreneurs.
• To facilitate bank loans between ₹10 lakh and ₹1 crore for setting up new businesses.
• To encourage the establishment of greenfield enterprises in manufacturing, services, trading, and agri-allied activities.
• To support economic empowerment and financial inclusion of underrepresented communities.

Eligibility Criteria

• Applicants must belong to the SC/ST category or be women entrepreneurs.
• The minimum age requirement is 18 years.
• Loans are available for setting up greenfield enterprises in the manufacturing, services, trading, or agri-allied sectors.
• The applicant should not be in default to any bank or financial institution.

Benefits

• Stand-Up India loan apply provides financial assistance ranging from ₹10 lakh to ₹1 crore.
• Easy access to loans for marginalized sections of society, promoting financial inclusion.
• Support for setting up greenfield enterprises, contributing to economic growth.
• Access to the Stand-Up India scheme details PDF and other resources through the Stand-Up India portal.
• Comprehensive assistance through the portal for application, training, and mentoring.

Start Up India Scheme-Registration & Launch Date 2024

Required Documents

• Proof of Identity (Voter ID, Passport, Driving License, PAN Card)
• Proof of Residence (Recent telephone bill, electricity bill, property tax receipt)
• Proof of Business Address
• Certificate of Incorporation (for companies)
• Documents proving SC/ST status or for women entrepreneurs, documents showing majority stakeholding.
• Projected balance sheets, business plan, and relevant financial documents.
• Memorandum and Articles of Association (for companies)

Challenges Addressed:
The scheme recognizes the difficulties faced by SC, ST, and women entrepreneurs in setting up businesses, obtaining loans, and accessing other necessary support. It aims to create an ecosystem that facilitates and sustains a supportive environment for doing business.

Access Points:
The scheme is accessible through:

1. Directly at the bank branch.
2. SIDBI’s Stand-Up India portal (www.standupmitra.in).
3. Lead District Managers (LDM).

Portal Interface and Borrower Classification

Portal Functionality:
The portal serves as an interface that collects parameters and metrics of the borrower through a set of questions. It provides feedback to potential borrowers and categorizes them as either “Ready Borrowers” or “Trainee Borrowers” based on their responses.

Questions for Borrowers:

1. Location of the borrower.
2. Category (SC/ST/Woman).
3. Nature of the planned business.
4. Availability of a place to operate the business.
5. Need for assistance in preparing a project plan.
6. Requirement for technical and financial skills/training.
7. Details of the current bank account.
8. Amount of own investment in the project.
9. Need for help in raising margin money.
10. Previous experience in business.

Classification:

• Ready Borrower:
  If no handholding support is required, the borrower is categorized as a Ready Borrower. Registration on the portal initiates the loan application process, generating an application number, and sharing borrower information with the concerned bank, LDM, and relevant offices of NABARD/SIDBI. These offices are designated as Stand-Up Connect Centres (SUCC). The loan application will be tracked through the portal.
• Trainee Borrower:
  If handholding support is needed, the borrower is classified as a Trainee Borrower. The portal links them to the LDM of the concerned district and the relevant SIDBI/NABARD office. Support is arranged in various ways:
  • Financial Training: At Financial Literacy Centers (FLCs).
  • Skilling: At Vocational Training Centers (VTPs) or other centers.
  • Entrepreneurship Development Programs (EDPs): At MSME DIs, District Industries Centers (DICs), or Rural Self Employment Training Institutes (RSETIs).
  • Work Shed: Through DICs.
  • Margin Money: Through state-level organizations like State SC Finance Corporation, Women’s Development Corporation, State Khadi & Village Industries Board (KVIB), and MSME-DIs.
  • Mentoring Support: From established entrepreneurs, trade bodies, women entrepreneur associations, and credible NGOs.

Roles and Responsibilities

The Stand-Up India scheme is designed to support SC, ST, and women entrepreneurs by providing them with the necessary resources and guidance to establish and grow their businesses. Here’s a detailed breakdown of the roles and responsibilities of various stakeholders involved in the scheme:

SIDBI (Small Industries Development Bank of India)

1. Portal Management: Operate and maintain the Stand-Up India web portal, ensuring its smooth functioning and accessibility for borrowers.
2. Handholding Support: Arrange for necessary support for Trainee Borrowers to help them prepare for loan applications and business setup.
3. Coordination: Liaise with banks through Lead District Managers (LDMs) and State Level Bankers’ Committees (SLBCs) to ensure follow-up on potential cases and to address any bottlenecks in the process.
4. Review and Monitoring: Assist SLBCs and District Level Consultative Committees (DLCCs) in reviewing and monitoring the progress of the scheme.
5. Event Participation: Participate in Stand-Up events organized by NABARD to engage with stakeholders and share best practices.

NABARD (National Bank for Agriculture and Rural Development)

1. Training: Conduct training programs for Trainers, LDMs, and Bank officers to equip them with the knowledge required to support the Stand-Up India initiative.
2. Handholding Support: Similar to SIDBI, NABARD also arranges for handholding support for Trainee Borrowers.
3. Coordination: Liaise with banks and LDMs to address bottlenecks and ensure the smooth processing of loan applications.
4. Review and Monitoring: Assist SLBCs and DLCCs in reviewing the scheme’s progress and addressing any challenges.
5. Organize Events: Frequently organize events, at least once every quarter, for stakeholders to share experiences, discuss best practices, and solve problems collaboratively.

Lead District Managers (LDMs)

1. Monitoring: Monitor the progress of loan applications and ensure timely processing.
2. Coordination: Serve as the contact point for SIDBI and NABARD, easing bottlenecks and facilitating communication between banks and potential borrowers.
3. Banker Sensitization: Work to sensitize bankers on the importance of supporting potential borrowers, especially those from SC, ST, and women entrepreneur categories.
4. Follow-up: Ensure that loans are processed within the time frame specified in the Code of Bank’s Commitment to Micro and Small Enterprises.
5. Handholding Support: Ensure that Trainee Borrowers receive the necessary support, coordinating with other stakeholders as needed.
6. Meetings and Events: Convene DLCC meetings periodically and participate in quarterly events organized by NABARD.

District Level Consultative Committees (DLCCs)

1. Review and Monitoring: The DLCC, chaired by the Collector, reviews the progress of the scheme at the district level.
2. Grievance Redressal: Address grievances related to public utility services and workspace issues for potential borrowers.
3. Problem Resolution: Assist in resolving any issues that arise during the implementation of the scheme.

Bank Branches:

1. Assistance: Help potential borrowers access the Stand-Up India portal and guide them through the loan application process.
2. Loan Processing: Process loan applications received online or in person within the specified timeframe (e.g., 2 weeks for loans up to ₹5 lakh).
3. Communication: In case of loan rejection, banks must communicate the reasons to the borrower as per the Code of Bank’s Commitment to Customers.
4. Grievance Redressal: Address grievances within 15 days at the bank level, ensuring timely resolution.
5. Monitoring: Establish an internal mechanism to monitor the performance of the Stand-Up India scheme within the bank.

Borrowers:

1. Portal Access: Access the Stand-Up India portal or visit a bank branch to answer a short set of questions for categorization as a Ready or Trainee Borrower.
2. Handholding Process: If categorized as a Trainee Borrower, follow the sequence of handholding support provided, including financial training, skill development, and mentorship.
3. Documentation: Provide all required documentation to the bank branch for loan processing.
4. Engagement: Attend quarterly events for experience sharing, learning best practices, and problem-solving.
5. Business Operations: Set up and run the business unit with due diligence, ensuring timely loan repayments.

How to Apply

1. Visit the Stand-Up India Portal: Begin by visiting the official Stand-Up India portal at www.standupmitra.in.
2. Register on the Portal: Enter details about your business, location, and category (SC/ST/Woman). You can select the nature of your business, the loan amount, and other relevant details.
3. Fill out the Application Form: Complete the Stand-Up India application form by providing personal and business details, including past business experience if applicable.
4. Submit the Form: After filling out the necessary information, submit the form through the portal. You can also visit a bank branch or contact the Lead District Manager (LDM) for further assistance.
5. Initiate Loan Process: Once registered, initiate the Stand-Up India loan application process with your chosen financial institution. The officials will contact you to complete the process.

The Stand-Up India scheme not only supports SC, ST, and women entrepreneurs but also aligns with the broader objectives of financial inclusion and economic empowerment. Through this scheme, aspiring entrepreneurs can access the necessary financial support to realize their business dreams and contribute to the nation’s economic development. For more details or to Stand-Up India login to the portal, visit www.standupmitra.in. Additionally, those interested in similar initiatives can explore the Pradhan Mantri Mudra Yojana as another viable option for financial support.