INTRODUCTION TO The Stand up India scheme
The Stand up India scheme aims at promoting entrepreneurship among women and scheduled castes and tribes. The scheme is anchored by Department of Financial Services (DFS), Ministry of Finance, Government of India.
Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a 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 by either an SC/ST or woman entrepreneur.
Eligibility
- SC/ST and/or woman entrepreneurs, above 18 years of age.
- Loans under the scheme is 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.
- In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrower should not be in default to any bank/financial institution.
Loan details
- Nature of Loan – Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.
- Purpose of Loan – For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.
- Size of Loan – Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
- Interest Rate – 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).
- Security – Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
- Repayment – The loan is repayable in 7 years with a maximum moratorium period of 18 months.
- Working Capital – For drawal of Working capital upto 10 lakh, 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 lakh to be sanctioned by way of Cash Credit limit.
- Margin Money – The Scheme envisages upto 15% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.
How to apply for loans
The scheme, which covers all branches of Scheduled Commercial Banks, will be accessed in three potential ways.
- Directly at the branch or
- Through Stand-Up India portal (www.standupmitra.in) or
- Through the Lead District Manager ((LDM)
Features of Stand Up India Loan Scheme
The Stand Up India scheme is aligned with the authorities’s agenda. It promoting economic inclusion and entrepreneurship among weaker sections of society. It is designed to empower individuals from SC, ST, and women’s communities by presenting them with vital financial help. Thus, it give them assistance to start and develop their personal organizations. Here are the extensive features of the Stand Up India Loan scheme that make it the best government initiative for people
Target Beneficiaries
The primary beneficiaries of the scheme are women and people belonging to Scheduled Castes (SCs) and Scheduled Tribes (STs). The goal is to support these companies in putting in sustainable firms and becoming entrepreneurs.
Financial Assistance
Under the scheme, bank loans starting from 10 lakhs to 1 crore are offered to eligible beneficiaries. The loans are meant to facilitate the established order of recent corporations in various sectors, which includes manufacturing, trading, and services.
Loan amount
The Stand Up India scheme provide the composite loan that includes both time period loan and working capital. This comprehensive monetary assist is aimed toward supporting entrepreneurs meet the various needs in their commercial enterprise.
Interest Rates
Interest rate for the Stand Up India scheme are usually lower than general market rates, making the loans more low-priced for the beneficiaries.
Loans free from Collateral
The stand up Loan scheme helps entrepreneurs by giving collateral-free loans to encourage individuals to start their businesses.
Provide huge Support
The scheme presents a guide through diverse means, which include credit records of the borrower. It also includes project document training, and undertaking entrepreneurship development applications.
Implementation
Stand Up India Loan scheme is carried out through Scheduled Commercial Banks, and debtors can technique those banks for loans under the scheme.
Documents Required
Here are the documents that applicants should have to apply for stand Up India Loan scheme
- A copy of the duly filled application form alongside the passport-sized photographs
- Identity evidence: Driver’s license, passport, Aadhaar card, Voter’s ID, or PAN Card
- Residence Proof: Aadhaar card, PAN Card, strength invoice or a phone invoice
- Proof of commercial enterprise deal with
- Deed of partnership
- Copies of the rent settlement of the office space/production unit
- Any other document required by the bank