About:
- Stand Up India Scheme was launched by the Ministry of Finance to promote entrepreneurship at the grassroots level focusing on economic empowerment and job creation.
- This scheme has been extended up to the year 2025.
Purpose:
- Promote entrepreneurship amongst women, Scheduled Caste (SC) and Scheduled Tribe (ST) category.
- Provide loans for greenfield enterprises in manufacturing, services, or the trading sector and activities allied to agriculture.
- Facilitate bank loans between Rs.10 lakh and Rs.100 lakh to at least one SC/ST borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks.
Facilitates Bank Loans:
The Stand Up India scheme aims to encourage all bank branches to extend loans. The desiring applicants can apply under the scheme:
- Directly at the branch or,
- Through Stand-Up India Portal (www.standupmitra.in) or,
- Through the Lead District Manager (LDM).
Eligibility for a Loan:
- SC/ST and/or women entrepreneurs, above 18 years of age.
- Loans under the scheme are available for only green field projects. Greenfield signifies, in this context, the first-time venture of the beneficiary in manufacturing, services, or the trading sector and activities allied to agriculture.
- In the case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrowers should not be in default to any bank/financial institution.
- The Scheme envisages ‘up to 15%’ margin money which can be provided in convergence with eligible Central/State schemes.
- In any case, the borrower shall be required to bring in a minimum of 10 % of the project cost as his contribution.
Tax Benefits/Incentives in Stand Up India:
- The applicants will get an 80% rebate after filing the patent application form. This can only be filled by start-ups and the benefits are also more for them as compared to other companies.
- There is also an inclusion of Credit Guarantee Fund and the entrepreneurs enjoy relaxation in Income tax at least for the first three years.
- There will be complete relaxation for the entrepreneurs for the Capital Gain Tax.
- Moreover, for the entities who qualify the program will further enjoy benefits like the redemption of tax on the profits earned.
- This is to ease the entities during the initial Startup phase so that there is no burden of paying heavy costs for taxes.
