Home Knowledge Path to Progress...Stand Up India Scheme

Path to Progress...Stand Up India Scheme

by Madhavi Mihir Bhuta (National Executive Member, BJP Mahila Morcha)
Oct 22, 2020

Bharat has been an Agro based economy. Agriculture had been a major occupations of the larger section of our society for centuries. Agriculture and affiliated occupations have been predominant in Bharatiya society.

In a typical Farmer household, every member (including women)  contributed to the farm work. The women performed dual duties of working on farms as well as maintaining homes. Her efficiency on both the fronts was evident and noteworthy, yet the myth prevailed that  woman is a lesser gender!!! We are the nation that had nurtured women intellectuals like Gargi, Anasuya, Waghdevi (wife of Mandan Mishra)

during Vedic age, Warriors and Administratorus Like Rani Laxmibai and Ahilyabai Holkar, Intellectuals like Amruta Pritam and Maitreyi Devi.

The pursuit of knowledge and intellect has been our tradition since the time immortal.

Around thousand years ago, our society succumbed to the Purdah system, as a result of the Islamic influence when they began ruling our nation, but the Purdah system prevailed mainly in privileged class. We believe that the Western culture is far more evolved and modern than ours but it is shocking to know that USA granted voting rights to women in 1920, the UK in 1918, Canada in 1917, France in 1944 and Switzerland as late as in 1971!!! Where as Bharatiya Constitution has grated this privilege to Bharatiya women since independence.

The Government’s post independence did not really care for uplifting women or creating equilibrium in gender equation. Had the then Governments taken dedicated initiatives to provide necessary infrastructure to promote and foster women to explore their hidden potentials, Bhartiya Nari could have marched ahead much earlier on all frontiers.

But the growth model adopted by Governments post independence did not strategise to reach to the people residing in the remotest corner of the nation. These women had remained untapped from the growth promoting machinery.

The tribal population as well as the people belonging to the schedule castes were not given the opportunities to be part of the growth journey. The entire growth strategy concentrated around the privileged class and urban and semi urban areas.

Such a situation had resulted in vast caste and gender inequality.

Due to Hon. Prime Minister’s grassroots connectivity, he  had pledged to serve Mother India and all 130 Crore Bharatiyas. Modiji led Government brought the new Policy to encourage women and people belonging to Schedule Caste and Schedule Tribe was initiated.

The Hon. Prime Minister, Shri Narendrabhai Modi launched - Stand Up India-  scheme in April 2016.

The scheme is anchored by the Department of Financial Services. (DFS), the Ministry of Finance, Government of Bharat. The Stand Up India Scheme facilitates bank loans between Rs 10 Lakhs to Rs 1 Crore to at least one scheduled caste  (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower who  have completed 18 years of age per bank branch for setting up greenfield enterprise.

This enterprise may be in manufacturing, services or the Trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held either by SC/ST or woman entrepreneur.

Pursuing Entrepreneurial Pursuits, Ms Poongodhai is the beneficiary under StandUp India loan scheme. She borrowed 10.50 Lakhs from Punjab National Bank, Anna Nagar, Chennai for setting up Optometric clinic with vision therapy as well as Optical Gallery as she is a low-vision-therapist.

Loans under this scheme is available to green field projects only. Green field signifies in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.

The borrower should not be in default to any bank/financial institution.

The size of the loan is 75% of the project cost inclusive of term loan and working capital.

The interest rate would be lowest

 applicable rate of the bank for that category not to exceed base rate + 3%  + tenor premium.

Besides primary security, the loan may be secured by collateral or guarantee of Credit Guarantee Fund Scheme for StandUp India loans (CGFSIL) as decided by the banks.

The loan is repayable in 7 years with a maximum moratorium period of 18 months.

For drawl of Working Capital upto 10 Lakhs, the same may be sanctioned by way of overdraft.

Rupay debit card to be issued for convenience of the borrower.

Working capital limit above 10 Lakhs to be sanctioned by the way of Cash credit limit.

The scheme can be availed from all branches of Scheduled Commercial Banks and to be assessed in three potential ways.

a) Directly at the branch

b) Through StandUp Portal (www.standupmitra.in)

c) Through the Lead District Manager (LDM)

Required documentation are Proof of identity, Proof of Residence, Proof of Business Address, Memorandum and articles of association of the company / Partnership Deed of the company, Assets and Liabilities statement of promoters and guarantors along with their Income Tax Returns, SSI/MSME registration if applicable, Rent agreement, Projected balance sheet, Caste Certificate, Photocopes of Lease Deed/ Title deed of the properties being offered as Collateral.

The requirement for cases with Exposure above ₹25 Lakhs require Profile of the Unit, Last three years balance sheets, Project report and Manufacturing process if applicable.

The borrower are categorised as Ready borrower or Trainee Borrower.

The trainee borrower is the one that indicates a need for handholding.

In case the borrower requires no handholding support, application of the loan at the selected bank is done through Stand Up India Portal. The LDM along with relevant linked officers of SIDBI/NABARD takes forward the loan.

Stand Up India Portal, which is managed by SIDBI, is an interactive portal. It hosts information about various entities providing handholding support to the borrower. It also includes Training: Financial/Technical, DPR preparation, Margin money support, Shed/Workplace Identification, Raw material sourcing, Bill discounting, E-com Registration and Registration for taxation.

Provision has been made in the Portal for redressal of the borrower. The portal provides contact details of the officers/agencies in each bank designated to attend to grievances.

SIDBI and NABARD have been appointed as Stand-Up Connect Centers.

The Stand-Up India Scheme endeavours to create an economy system to make borrowers ready.

Taslima Bibi’s dream to be economically independent has been fulfilled with emergence of Stand Up India Scheme.

Taslima Bibi, a resident of Chaulkhola village in 24 Pargana South, Bengal owns R K Garments engaged in manufacturing and trading in Jeans. Her husband, Mojaffar Janadar, had more than Ten years experience of working in Jeans manufacturing enterprise. Taslima Bibi, approached Punjab National Bank in the vicinity, and launched R K Life in ABM Hat at Metiabruz, the largest market for Jeans in entire Asia. She markets her products outside Bengal to neighbouring states of Jharkhand , Bihar and Odisha. The economically independent promoter has employed 25 labourers in her unit. She is not only providing bread and butter to her family but also providing for 25 households.

The loan of Rs.10.20 Lakh under Stand Up India. They have also acquired trade license and submitted all the required documents to the bank.

There is one soul searching incidence that throws light, how slogans regarding unity and removal of caste differentiation were actually political gimmicks to foster vote banks.

In 1991, in Delhi, a young fellow of 15 yers, named Siddhant Paswan, in frustration changed his name to Siddhant Kumar and dropped his surname portraying Dalit status to avoid the shadow of caste discrimination.

Kumar’s journey began with painting Signboards, election banners, school walls. He enrolled in Jamia Millia Islamia University (Faculty if Fine Arts) and later completed his masters in design from IIT, Mumbai.

Kumar studies by day and painted walls and ceilings at night, earning Rs 200/- per day.

With a friend from NIT, Bhopal and another from NIFT, Chennai, Kumar founded FunRally Games.The company designs board games, card games, dice based games and miniature war games-mostly exploring and reinventing the traditional games from villages. Further, they also manufacture and sell daily used and household articles with denim decor.

With such huge innovative talent, in initial years, they had absolutely no money. Once, they were on the verge of shutting their work, due to shortage of mere 10,000/- Rs!!! As they had used every penny that they or their middle class parents had.

In those days, the major most obstacle that an entrepreneur in Bharat faced, was Credit facility from formal banking system. The potential Dalit entrepreneur, from lower starta was doubly handicapped as they invariably lacked collateral as well as influential Guarantor to support and limited access to informal credit through community networks.

But, Hon. Prime Minister’s truthful dedication to ideology of Sab Ka Saath Sab Ka Vikas changed the scenario for the talents belonging to ‘Have not’ sector.

With implementation of Stand Up India Scheme, Kumar and his team approached Vijaya Bank and acquired bank finance of term loan of Rs 25 Lakhs for setting up Machineries like Sewing Machines,Computer Systems, Commercial Vehicle etc. and also a working capital of Rs.25 Lakhs for day to day operations.

On getting timely finance, they have expanded their business and employed Seven people and projected ambitious sale of Two Crores in this financial year. Whenever Kumar visits his village, he looks at the electric pole near his house, with a banner, he had painted as a teenager, showing direction to nearby salon. Every time he livens up this memory, it strikes him that had not Modi Government implemented such a inspiring scheme like Stand Up India, he and many like him, could not have been able to roll the growth wheel.