Stand Up India Scheme

Last Updated : Nov. 14, 2022, 5:30 p.m.

The Honorable Prime Minister, Mr. Narendra Modi, launched the Stand Up India Scheme in April 2016. The aim of the scheme is to provide a loan of Rs. 10 lakhs to Rs. 1 crore to people belonging to scheduled tribes or castes and female citizens of the country. The goal is to promote entrepreneurship and independence among them. 1.25 lakh bank branches are taking part in the scheme to lend money every year to at least one tribal or Dalit entrepreneur and one female entrepreneur in their service area.

Key Features of the Stand Up India Scheme

The following are the key features of the Stand-Up India scheme:

• The Stand Up India scheme is a part of an initiative by the Ministry of Finance, India, to encourage entrepreneurial projects.
• A loan of Rs. 10 lakh to 1 crore will be provided for setting up a new enterprise.
• According to the scheme, every bank branch is required to facilitate at least two entrepreneurial projects every year, one for a women entrepreneur and one for SC/ST.
• For the withdrawal of credit, a RuPay debit card will be issued.
• The bank will maintain the credit history of the borrower and ensure that the funds are not being used for personal use.
• Creation of a new corpus of Rs. 5,000 crores through NCGTC for credit guarantee.
• Encouraging the borrowers in their business endeavours by providing comprehensive support such as facilitating the loan, marketing, and factoring facilities.
• A web portal has been created under the scheme to help people with online registration and provide support services.
• Those applying for the scheme will be familiarised with the online portal and other support services related to web entrepreneurship, e-marketing, factoring services, and registration.

Eligibility Criteria for the Stand Up India Scheme

The following are the eligibility criteria for applying to the scheme:

• The applicant must be aged 18 or above.
• The organisation must be a partnership firm or a private limited company.
• The annual turnover of the company must not exceed Rs. 25 crores.
• The applicant must either be a female entrepreneur or an entrepreneur belonging to ST or SC categories.
• Only greenfield projects will be considered for the loan. Greenfield projects are those that are the first ones being undertaken in the service or manufacturing sector.
• The applicant must not be a defaulter of any bank or organisation.
• The company should be dealing with innovative or commercial consumer goods with the approval of DIPP.

Benefits of the Stand Up India Scheme

Whenever the government launches a scheme, its main aim is to benefit the people and the country as a whole. The same goes for the Stand Up India Scheme . Following are some of the main benefits of the scheme:

• The initiative’s main aim is to promote and motivate new entrepreneurs so that unemployment is minimised.
• If you are a female or ST/SC investor, the scheme will provide you with a very useful platform to get professional advice and knowledge about laws. You will also get assistance in your startup for the initial two years of work.
• The scheme also provides post-set-up assistance to consultants.
• Another benefit for entrepreneurs is that they can repay the loan in seven years. Only a certain amount has to be repaid each year according to the borrower’s preference. So they don’t have to worry about how to pay back the loan amount in a limited time. This reduces the repayment stress for the borrower.
• This scheme will help eliminate operational, legal, and other institutional hurdles for entrepreneurs.
• It can act as a positive boost for job creation, resulting in the socio-economic empowerment of women, Dalits, and tribals.
• The scheme can also be a driving force for other schemes like ‘Make in India’ and ‘Skill India’.

Tax Benefits/Incentives in Stand Up India

• An 80% rebate will be given to the applicants after they fill out the patent application form. Only startups can fill up this form, so they get more benefits than other companies.
• The scheme also includes Credit Guarantee Fund. Relaxation in Income Tax for at least the first three years will be enjoyed by entrepreneurs.
• The entrepreneurs will enjoy complete relaxation for the Capital Gain Tax.
• The entities qualifying for the program will enjoy further benefits such as tax redemption on the earned profits.

Conclusion

We hope this blog helps with all the information you need regarding the Stand Up India Scheme. If you think you are eligible for the scheme and it suited your business needs, don’t miss the chance of taking advantage of it.