Objective: To promote entrepreneurship at grassroot level focusing on economic empowerment and job creation. To provide entrepreneurial support to women and SC & ST communities by facilitating them bank loans between Rs. 10 lakhs to Rs. 1 crore.
Features:
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- It is a central sector scheme launched in 2016.
- It provides entrepreneurial support to women and SC & ST communities by facilitating them bank loans between Rs. 10 lakhs to Rs. 1 crore.
- Eligibility:
- SC/ST/Women above 18 years of age.
- Loan only for greenfield projects.
- For non-individual enterprise, 51% of controlling stake by either SC/ST/Women.
- Borrower must not be in default to any bank/institution.
- The loan has to be repaid within 7 years with moratorium period of maximum 18 months.
- The scheme covers all branches of scheduled commercial banks.
- Applicant can draw upto 10 lakhs by overdraft facility for working capital.
- Implementing agency: Small Industries Development Bank of India (SIDBI).
- The scheme is now extended up to 2025.
Achievements:
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- More than 1.8 lakh entrepreneurs have benefitted from the scheme.
- Of all the loans given under scheme, 80% beneficiaries are women.
Challenges:
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- Credit limit: The upper limit of loan availability is 1 crore which may not be sufficient in case of manufacturing and trading company. Also, it may vary as per the region in which company is established.
- Lack of handholding support: The applicants lack other support like parallel skill development, network support, etc.
- Lack of awareness among applicants.
- The stipulated turnover of Rs 25 crore is a challenge as very few women-led and SC/ST-led firms are able to meet this criterion.
- Low penetration of banking sector in rural and tribal areas.
Way Forward:
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- Convergence of stand-up India scheme with other central schemes like startup scheme, skill India, MUDRA, Jan Dhan Yojna etc., for holistic development.
- Overall strengthening of the banking system to enhance credit availability, risk management etc.
- Increase the upper credit limit based on some criterions like firm type, location etc.
- Awareness generation among both eligible beneficiaries as well as bankers.
