Thinking of starting your own business but unsure of where to begin? You’re not alone. For many first-time entrepreneurs in India, turning an idea into a reality can feel a bit complex, especially when it comes to funding and understanding the formalities.
That’s where the Stand Up India scheme steps in. Designed to support women and marginalised communities, it’s helping aspiring business owners take their first confident step into entrepreneurship with access to loans, mentorship, and guidance.
What is the Stand Up India Scheme?
Introduced in April 2016, Stand Up India aims to promote entrepreneurship among SC/ST and women. It is one of several MSME government schemes designed to make funding more accessible and inclusive for underrepresented groups in the entrepreneurial ecosystem.
They help to facilitate bank loans ranging from ₹10 lakh to ₹1 crore for setting up new enterprises in manufacturing, services, or trading sectors. The scheme ensures that each bank branch provides a loan to at least one SC/ST borrower and one woman borrower.
Who Can Benefit from Stand Up India?
The scheme specifically targets:
- SC/ST individuals and women entrepreneurs above 18 years of age.
- First-time entrepreneurs are establishing greenfield enterprises.
- Non-individual enterprises where 51% of the shareholding and controlling stake is held by SC/ST or women entrepreneurs.
Loan Amounts and Financial Support Offered
Under Stand Up India, eligible entrepreneurs can avail:
- Composite loans (inclusive of term loan and working capital) between ₹10 lakh and ₹1 crore.
- Repayment tenure is up to 7 years, with a maximum moratorium period of 18 months.
The interest rate is determined by the bank’s policies, but is capped at the bank’s lowest applicable rate for that category, plus a maximum of 3% and a tenor premium
Industries and Sectors Covered Under the Scheme
Stand Up India supports a diverse range of sectors, including:
- Manufacturing units produce goods or products.
- Service enterprises offer a variety of services to consumers and businesses.
- Trading businesses are involved in the buying and selling of goods.
- Activities allied to agriculture, such as food processing or agri-based services.
This broad coverage ensures that entrepreneurs from diverse backgrounds can find opportunities that align with their interests and expertise. It also makes Stand Up India a valuable part of the wider pool of MSME government schemes, encouraging sectoral diversity.
How Stand Up India Supports Women Entrepreneurs?
Women entrepreneurs often face unique challenges in accessing finance and resources. Stand Up India addresses these by:
- Ensuring that each bank branch provides loans to at least one woman entrepreneur.
- Offering handholding support, including training, skill development, and mentoring.
- Facilitating access to networks and resources to help women understand the business industry.
By focusing on women, the scheme aims to bridge the gender gap in entrepreneurship.
Support for SC/ST Entrepreneurs: Levelling the Playing Field
SC/ST entrepreneurs often encounter systemic barriers in the business world. Stand Up India seeks to level the playing field by:
- Mandating that each bank branch provide loans to at least one SC/ST entrepreneur.
- Providing access to financial resources that might otherwise be out of reach.
- Offering support services to guide them through the process of establishing and running a business.
This targeted support helps in fostering inclusive economic growth.
Step-by-Step: How to Apply for Stand Up India Loans
Applying for a loan under Stand Up India involves the following steps:
- Visit the Official Portal: Go to the official website to access the application platform.
- Register: Provide details about your business location, category (SC/ST/Woman), nature of the proposed business, and other relevant information.
- Select Support Requirements: Indicate if you need handholding support, such as training or mentoring.
- Submit Application: After completing the registration, submit your application.
- Bank Processing: The bank will review your application, conduct due diligence, and process the loan accordingly.
Alternatively, you can apply directly at your nearest bank branch or through the Lead District Manager (LDM) of your area.
Why Stand Up India is a Game-changer for Inclusive Growth?
As one of the flagship MSME government schemes, Stand Up India plays an important role in inclusive entrepreneurship. It promotes equitable economic growth, and not only does it provide financial assistance, but it also ensures that entrepreneurs receive the necessary support to succeed.
The scheme’s emphasis on greenfield enterprises encourages innovation and diversification in the economy. In essence, Stand Up India is more than just a loan scheme; it’s a comprehensive initiative designed to foster entrepreneurship and bridge socio-economic disparities.
Empowering First-time Entrepreneurs for a Better Tomorrow
The Stand Up India scheme is more than just a financial initiative; it’s a catalyst for economic inclusion and empowerment. Focusing on SC/ST and women entrepreneurs, it opens up real opportunities for minorities and helps them grow. For first-time business owners, it offers not just funding but also the confidence to take that crucial first step.
If you’re planning your first venture or need guidance on financing, financial institutions like HDFC can support you. As a participating lender under the Stand Up India scheme, they offer expert assistance, easy documentation, and personalised service to help turn your business idea into reality.