It was launched in 2016 with the objective of promoting entrepreneurship amongst weaker section (SC/STs and women) via facilitating financial access for setting up a Greenfield enterprise.
Features
Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh/1 crore is provided.
The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
Loans under the scheme are available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
The loan is repayable in 7 years with a maximum moratorium period of 18 months.
Issue/Criticism
As of Dec. 2017, only 6% of the 1.3 lakh banks have lend loans under Stand Up India initiative. Hence the coverage in low.
Empowering the weaker sections of the society is must to ensure inclusive development. Hence government must ensure that schemes like Stand Up India reaches a conclusive end and doesn’t get bogged down by teething problems like low coverage.
