What are the key features of the Stand Up India scheme?
Stand Up India scheme, launched by Prime Minister Narendra Modi on 5th April 2016, is a loan scheme that provides loans from Rs. 10 Lakh to Rs. 1 Crore to the scheduled caste, scheduled tribe, or a woman. The loan is obtained from the banks for setting up a new project or business. The scheme is backed by the Department of Financial Service (DFS), Ministry of Finance, Government of India. It aims at promoting entrepreneurship among women and scheduled caste and tribes.
The key features of the Stand Up India scheme are:
- The main objective of the scheme is to benefit the institutional credit structure by ushering in bank credit in the non - farm sector and reaching out to minority sections of the population.
- This scheme is backed up by the Department of Financial Service (DFS), Ministry of Finance, Government of India for promoting entrepreneurial projects.
- The scheme says each bank branch will facilitate two entrepreneurship projects one for scheduled caste/scheduled tribe and one for a woman entrepreneur on an average basis.
- An exemption from income tax for the first three years on commencement of business.
- An amount will be provided ranging from Rs. 10 lakhs to Rs. 1 crore as a loan for setting up the new enterprise with working capital.
- Small industries development bank of India provides Refinance window with an initial amount of 10,000 core.
- Under this scheme, creation of a corpus of Rs.5000 crore for credit guarantee through NCGTC.
- A web portal has been created to help people online registration and support services.
- A Rupay Debit Card will be provided for withdrawing the credit.
- Borrower's credit history shall be maintained by the bank from where the loan has been taken. This will ensure that the funds aren't being utilised for personal use.
