Stand Up India Loan Scheme

Objective: 

 The empathetic and people- centric current federal or central government of India formulated well- thought- out plans. The plans for the Stand up India are now put in place for helping the deprived sections of the society. The target group comprises of schedule castes, schedule tribes, women among other weaker sections of the society. The scheme is the part and parcel of the short-term goal of the Government India to make the nation as a developed nation. The Stand -up India scheme is aimed at the development of synergies with other such schemes the Government would be implementing.

Plans:

Financial independence to the deprived sections of the society, by and large, would help them to get freed from the age-old shackles of subservience from the well-off sections of the society. The Stand-up India Schemes are primarily meant to promote entrepreneurship among them. True to the definition of the adjective stand- up, the schemes are designed to make them financially independent. The shift for the targeted

Feasibility:

The virtue of entrepreneurship just cannot be said to be the monopoly of the upper sections of the society alone. The ability is innate anybody. Equipping the deprived sections with the needed resources would help them to realize their potential in entrepreneurship and provide them unique opportunity to come up in life.

Schemes in a nutshell:

(i) The quintessential aspect of the Stand – up India scheme is to provide liberal loans to the prospective entrepreneurs ranging from Rs.10 lakh to Rs.100 lakh depending upon the requirement of funds for establishment of businesses.

(ii) The Stand-up India scheme would be a game changer in respect of the establishment of micro and small scale industries.

(iii) The industrial progress generates employment and augments income of lower strata of the society. The rise in per capita income would result in demand for consumption of goods and services. The chain would go a long way for achieving higher GDP.

(iv) The Stand – up India scheme was announced by our Hon’ble Prime Minister Sri Narendra Modi ji on April 05, 2016.

(v)The interest chargeable for the loans advanced under the scheme would be around 1% per month or around 12%. The interest rate by any reckoning is very reasonable.

Loan scheme features: 

The private industry came forward to support the initiative of the Government of India. For instance Google and Life Insurance Corporation of India, among other came forward in support of the Stand-up India scheme.

Funds position:

(i) The Government of India initially earmarked Rs.10, 000 crore through Small Industrial Bank of India for the Stand – up India scheme with provision for refinancing the scheme, if need be.

(ii) To back up the position of funds for the Stand – up India scheme, the Government would set up a credit guarantee with a corpus of Rs.5, 000 crore through National Credit Guarantee Trustee Company Limited.

(iii) Online registration and other supporting services would be provided by the Government. Plans are afoot for development of detailed credit history of the borrowers.

Facilitation measures from Government of India:

Entrepreneurs who take advantage of this scheme would be given RuPay debit card for withdrawal of working capital. The government would provide necessary support to the entrepreneurs in the form of training, marketing etc., for successful implementation of the Stand – up India scheme.

Knowledge dissemination:

If the schemes meant for uplifting the deprived sections of the society are not brought to their notice, the entire effort made by the planner would be in vain. Knowledge dissimulation is the first and foremost step for effective implementation of the Stand – up India scheme.

Measures for the fulfillment of the objective of Stand – up India Scheme:

(i)First and foremost aspect of the scheme is that is not applicable to any company, individual, Limited and Limited Liability Company.

(ii) There are limitations. (a)The limitations are that the entities established must not be more than five years old.

(b)The second and important aspect of the Stand – up India scheme is that it is open for those concerns the annual manual turnover of each is not exceeding Rs.25 crore.

(c) The third aspect is open to holders of the certificate from the Department of Industrial Policy and Promotion.

Encouragement:

It is equally important to encourage the targeted group to exploit the opportunity now available to them. This is in the best interest of each and every one of us in the country. The most important salient feature of the Stand – up India scheme is that business earning of businesses established under the scheme are exempt from tax for the initial period of 3 years.

Outcome:

Couple with the skilled development initiative undertaken by the Government of India, in all earnest, successful implementation of the Stand – up India scheme is expected to lay firm founder for the turnaround the nation as a developed one in the foreseeable future, earlier than general expectations.