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Introduction

Stand Up India Scheme is part of the Government schemes initiated to boost the backward communities of the country as well as provide a platform for women employment and empowerment. Under this scheme, financial assistance is provided to the members of the SC/ST community or women entrepreneurs for creation or generation of employment opportunities in the MSME space in the manufacturing sector or the service sector. Eligible applicants can get loans up to Rs 1,00,00,000 under this scheme at minimum applicable rates from the partner lender banks.

Eligibility for Stand Up India Scheme

The scheme is targeted specifically for the backward class and women entrepreneurs. The eligibility criteria for applying for a loan under Stand Up India Scheme are mentioned below.

  • Applicant should be mandatorily belong to the SC/ST community or should be a women entrepreneur
  • In case of non-individual applicants, at least 51% of the ownership or shareholding should be with the SC/ST community or with the women entrepreneur.
  • The minimum age requirement for the applicants is 18 years
  • The eligible projects under the scheme are only Green field projects; essentially the first project of the eligible applicants in the manufacturing or service or trade activities.
  • The applicant should not be a defaulter of any bank or financial institution.

The factors contributing to the availability or sanction of loans under Stand Up India are,

  • Business location
  • Borrower’s residence
  • Category of the promoter
  • Quantum of personal contribution in the project.
  • Prior business experience is preferred in sanctioning of the funds.

Documents for Loans under Stand Up India

The documents required for the loans under Stand Up India are some of the KYC documents as well as additional documents related to income proofs and business proofs.

The list of documents required under Stand Up India scheme id given below.

  • Identity Proof of the applicant
  • Address Proof of the applicant
  • Rent agreement or lease deed copies
  • Partnership Deed
  • Memorandum and Articles of Association
  • Balance Sheet for past 3 years/ITR

Features of Stand Up India Scheme

The various features or highlights of the Stand Up India Scheme are mentioned hereunder.

Purpose of Loan

The purpose of loans under Stand Up India Scheme is for setting up of a new manufacturing trading or service sector by eligible applicants.

Amount of Loan

The amount of loan that can be availed under the Stand Up India Scheme is aimed to give maximum funding to the eligible applicants. The minimum loan under the scheme is Rs. 10,00,000 and the maximum loan that can be availed by an eligible borrower is Rs. 1,00,00,000.

The borrowers can get a composite loan up to 75% of the project cost which will include the working capital requirement as well as term loan. The underlying condition in this regard is that the composite loan amount up to 75% of the project cost will not be applicable if the borrower’s contribution along with assistance under another scheme exceeds 25% of the total project cost.

Rate of Interest

According to the guidelines of the scheme, rate of interest for loans under Stand Up India Scheme will be the lowest interest rate offered by the lender (Bank) in this category. The applicable rate of interest charged by the lenders cannot exceed Bank’s MCLR+3%+Tenure Premium.

Tenure

The tenure for repayment of loans under Stand Up India Scheme is up to a maximum of 7 years. The maximum moratorium period available to the borrowers cannot exceed 18 months.

Security

The borrower may be required to provide additional security apart from the primary security as per the bank guidelines. Borrowers can provide an additional security or a guarantee by Credit Guarantee Fund Scheme for Stand up India Loans(CGFSIL).

Margin

The borrowers are required to provide a certain percentage of the total project cost as margin money apart from the assistance received from various other State or Central Government Schemes. The minimum contribution expected from the borrowers is 10 % of the total project cost.

Working Capital

The working capital withdrawal can be up to Rs. 10,00,000 and can be sanctioned by way of an overdraft facility. The lender can issue a RuPay Debit Card to facilitate easy withdrawals by the borrower.

The borrower can get extension on Working Capital limit above Rs. 10,00,000 by way of a cash credit facility.

Apart from the above features, the scheme also has some provides certain benefits to the borrowers like,

  • Borrowers under the scheme will also be covered under various other schemes of the Government like Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, Pradhan Mantri Suraksha Yojana, etc.
  • Easy access to banking services to many rural and village areas that are still not benefited from the services offered by the banking sector.
  • Borrowers can also get a pre-loan training like facilitating the loan, marketing , etc.
  • Easy access to the scheme as all the scheduled banks are eligible to provide loans under Stand Up India Scheme.

Application process for Loans under Stand Up India Scheme

The basic requirement for the loan application process under the scheme is the registration of the applicant. The registration process can be as follows,

  • Visit the official website of Stand Up India
  • Next the applicant will have to fill in the details of the business location and the category of the applicant (whether SC/ST/Women)
  • Further required details are the nature of the proposed business, loan amount required, details of premises of business, past business experience, tenure, etc.
  • Selecting the need for hand holding facility
  • Entering personal details, name and type of the business enterprise.

After filling all the required details the applicants are required to submit/click on the register to complete the registration process.

Post registration, the applicant can go to any of the scheduled banks for loan application process or even avail the online mode offered by the bank for the same. The banks will guide the applicant with the further process of application as well as documentation as per their guidelines. After submitting the application along with the required documents, if approved, the applicant can get the funds under Stand Up India Scheme.

FAQs – Stand Up India Scheme

1. What is the difference between Stand Up India Scheme and Start Up India Scheme?

Stand Up India Scheme aims to provide financial assistance to SC/ST or women entrepreneurs for their green field projects whereas, Start UP India aims to provide financial assistance to new or existing business enterprises that use innovative technologies.

2. What is Hand Holding Support under Stand Up India Scheme?

Hand Holding facility under the scheme is the assistance provided to the prospective borrowers in initiating their green field projects by way of mentoring, skill development training, matching lender’s requirement, etc.

3. What is the maximum tenure under Stand Up India Scheme?

the maximum tenure under the scheme is 7 years.

4. What is the minimum amount of loan that is available under the scheme?

The minimum amount of loan under the scheme is Rs. 10,00,000.

5. What is the maximum quantum of loan that can be sanctioned under the Stand Up India Scheme?

The maximum quantum of loan that can be disbursed under the scheme is up to 75% of the total project cost.

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