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PM Stand Up India Scheme 2022 | Check complete details

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PM Stand Up India Scheme 2022 | See Information here

PM Stand Up India Scheme 2022

Today I will talk about PM Stand Up India Scheme 2022 through this article. The Stand Up India scheme aims to provide loans between 10 lakh to 1 crore rupees to the scheduled caste or scheduled tribe or women of the country depending on their vacancy.

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Name of post : PM Stand Up India Scheme 2022
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Its aim is to promote entrepreneurship among them. The topic, 'Stand Up India Scheme' comes down from the Indian Politics Syllabus of the IAS Exam and this article will provide you with accurate details about it.

Down the PM Stand Up India Scheme 2022, 1.25 lakh bank branches will be expected to lend money annually to at least one Dalit or tribal entrepreneur and one woman entrepreneur in their service area.


Key Features of Stand Up India Scheme

  • The Yojana is a part of the initiative of the Organization of Financial Services, Ministry of Finance, to Encourage entrepreneurship plans.
  • An amount ranging from Rs 10 lakh to Rs 1 crore is to be provided as a loan, including working capital, for starting a new business.
  • The plan states that each bank branch should facilitate an average of two entrepreneurial projects. One for SC/ST & one for women entrepreneurs.
  • RuPay Debit Card will be provided for the withdrawal of credit.
  • The credit history of the borrower should be maintained by the bank so that he cannot use that money for personal use.
  • Under this scheme, through NCGTC, the creation of a corpus of Rs 5000 crore for credit guarantee.
  • To support borrowers by providing comprehensive support for pre-loan training like loan facilitation, factoring, marketing, etc.
  • A web portal has been created to help people with online registration and support services.
  • The main objective of this scheme is to reach out to the minority sections of the population by introducing bank loans in the non-agricultural sector i.e. areas where agriculture is not done and make them also benefit from initiating bank loans.
  • At the same time, this scheme will also be beneficial for those schemes which are being run by other departments.
  • The Stand Up India scheme will be spearheaded by the Small Industries Development Bank of India (SIDBI), with the involvement of the Dalit Indian Chamber of Commerce and Industry (DICCI). There will be participation from DICCI as well as other sector-specific institutions.
  • SIDBI and the National Bank of Agriculture and Rural Development (NABARD) will be awarded the designation of Stand Up Connect Center (SUCC).
  • An initial amount of Rs 10,000 crore will be disbursed to the Small Industries Development Bank of India (SIDBI) to provide financial assistance.
  • There will be a pre-loan and an operational phase to take advantage of this scheme and the system and the authorities help the people in these phases.
  • To help the credit system reach the entrepreneurs, the margin money for the overall loan will be up to 25%.
  • People applying for PM Stand Up India Scheme 2022 will be familiar with other resources of online platforms and other resources of e-marketing, web entrepreneurship, and registration


Convergence and Inter-Sectoral Linkages In The Scheme

  • At the launch of the Pradhan Mantri Stand Up India Scheme, 5100 E-Rishaw was distributed by Bhartiya Micro Credit (BMC) under Pradhan Mantri Mudra Yojana Scheme.
  • Apart from getting loans under the Stand-Up India scheme, the recipients will also be covered under the Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Yojna, Atal Pension Yojana schemes, and other eight important Prime Minister's Schemes.
  • BMC – Bhartiya Micro Credit aims to spread awareness about financial inclusion and social security schemes and proposes to benefit the poor and homeless people in the country.
  • The idea is to facilitate the upgradation of pedal rickshaw drivers into E-Rishaw owners and help them increase their income three times.
  • Mudra Yojana is responsible for providing loans for all the facilities under this program.
  • The transition from Pedal Rickshaw to E-Rishaw is helping in achieving the goals of Swachh Bharat Abhiyan.
  • Charging and service stations will also be set up under the scheme, which will help in the rise of small and micro enterprises along with creating many opportunities for entrepreneurs.
  • It systematically integrates the Indian Micro Credit (BMC) E-Rishaw program into a 'Stand Up India' initiative.


qualification Criteria for Stand Up India Scheme

  • The nominee's age should be 18 years or above.
  • The turnover of the firm should not exceed 25 crores
  • An entrepreneur should be either a woman or a person belonging to Scheduled Caste or Scheduled Tribe category.
  • The loan will be provided only to fund Greenfield projects i.e., the project should be the first to be undertaken in the construction or service sector.
  • The applicant should not be a defaulter of the bank or any other organization.
  • The nominee's company must be dealing with any commercial or innovative consumer goods. DIPP approval is also required for this.


Benefits of Prime Minister Stand Up India Scheme

  • The basic objective of the Stand Up India Scheme is to encourage and motivate new entrepreneurs so that unemployment can be reduced.
  • If you are an investor then Stand Up India provides you with the right platform where you get professional advice, timing, and information about the laws. Another advantage is that they will assist you in the start up for the first 2 years of your work.
  • They also provide post-set-up support to the consultants.
  • Apart from this, there is also an advantage for entrepreneurs that they do not have to worry much about how to repay the loan amount they have taken, as they have 7 years to pay off the loan. This reduces the repayment stress for the borrowers; however, a fixed amount has to be paid each year as per the borrower's choice.
  • The scheme will also help in removing various hurdles like legal, operational, and other institutional barriers, etc. for entrepreneurs.
  • This can be a very positive boost in terms of employment generation, leading to socio-economic empowerment of Dalits, Adivasis, and women.
  • It can also act as a driving force for other government schemes like 'Skill India' and 'Make in India'.
  • This will help in protecting the demographic dividend in India.
  • There will be financial and social inclusion of access to bank accounts and technical education.


Stand Up India Scheme: Challenges

  • Not much attention has been paid to educating the population on the socio-economic dimensions of Dalit entrepreneurship and women's entrepreneurship. If this is not done, the Stand Up India program may not be very effective.
  • The norms of the Stand Up India scheme say that the company should be innovative. It is left to the discretion of the DIPP to decide whether a product is innovative or not. This can lead to delays and potentially damage good business projects in the process.
  • The turnover of the company should be 25 million euros. There are very few women-led and SC/ST-led companies that meet this criterion.
  • Self-help groups, which have given some impetus to women entrepreneurs, especially in rural areas, have been occupied by the elite and overwhelmed by dominant local interests. The Stand Up India plan does not mention any institutional measures to deal with these problems.
  • Moreover, the banking sector has not yet penetrated into the interior of the country in any significant way. Hence, lack of institutional linkage with banks, public awareness, the digital divide, and many other technical challenges may hinder the linking of bank accounts despite the success of Pradhan Mantri Jan Dhan Yojana.
  • 10 lakh to 1 crore financial assistance for the manufacturing sector Insufficient castes and tribes and women are not fully empowered in terms of technical skills, access to skilled labor, knowledge of the areas, etc.


PM Stand Up India Scheme 2022 Important Link

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PM Stand Up India Scheme 2022: FAQs

Q1: Why is this scheme needed?

Ans. Because this encourages the presently established cities the establishment of new industries. But once this scheme is started, every year new industrial activity has started in 2.5 lakh people and 1.25 places across the country. Banks were nationalized in the name of the poor, but in the first 70 years after independence, about 40 percent of the population did not have access to banking services. The Stand Up India scheme not only aims to help big businesses but also the general public by providing them with finance and loans.

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