Stand-Up India Scheme Details

Stand-Up India Scheme

Prime Minister Narendra Modi launched the Stand-Up India scheme as part of the central government efforts to support entrepreneurship among SC/ST and/or women. Stand-Up India scheme launch date is 5th April 2016. Stand-Up India scheme loan is between Rs.10 lakhs to Rs.1 crore. In this post, let us take a look at the features, benefits and eligibility of this scheme.

What is Stand-Up India Scheme?

The Stand-Up India scheme is a central government sponsor scheme. It aims at giving bank loans between Rs.10 lakhs to Rs.1 crore to at least one SC or ST borrower and at least one women borrower per bank branch for setting up a Green Field enterprise. The goal of this scheme is to promote entrepreneurship among them.

In this scheme, 1.20 lakh bank branches all over India would each be expected to give money every year to at least SC or ST entrepreneurs and one woman entrepreneur in their service area. Stand-Up India scheme promoted by the central government.

The scheme has an objective of 2.50 lakhs loan permissions within three years. In non-individual enterprises, a minimum of 51% of the shareholding and managing stake be held by either an SC/ST or woman entrepreneur.

Salient Features

Here are some features of this scheme:

1. Stand-Up India scheme is associated with the DFS- Department of Financial Services to promote entrepreneurial plans. Stand-Up India scheme is under the Ministry of Finance.

2. An amount ranging between Rs 10 lakhs to Rs.1 crore to be given as a Stand-Up India loan, including working capital for setting up a new business.

3. The scheme declares that each bank branch needs to expedite two entrepreneurial plans on average. (1-SC/ST and 1-woman entrepreneur).

4. The repayment period is up to 7 years with a moratorium period of up to 18 months.

5. A RuPay debit card would be given for the withdrawal of credit.

6. The loan amount sanctioned by way of overdraft for a loan amount of up to Rs.10 lakh.

7. The loan amount sanctioned in the form of the cash credit limit for a loan amount above Rs.10 lakh.

8. The credit history of the borrower would be maintained by the bank to not use the money for any personal use.

9. There is no subsidy offered under this scheme.

10. You can secure the loan with collateral security or guarantee of the Credit Guarantee Fund Scheme besides the primary security, as decided by the banks.

11. Stand-Up India loan interest rate: (Base Rate + (MCLR) + 3% + Tenor Premium).

Eligibility Criteria

1. SC/ST or women entrepreneurs must be 18 years or above.

2. The loan will only be granted to fund Green Field projects, i.e., the project must be the first one being undertaken under the manufacturing or service sector.

3. The applicant must not have defaulted in any previous loan(s)

4. Non-individuals, such as businesses and existing firms, can also apply for the scheme. 51% of the controlling stakes and shareholding of the firm must be taken by SC/ST and women entrepreneurs.

Benefits under the scheme

When the Central Government comes up with a scheme, its main objective is to benefit the citizens. Given below are the benefits of this scheme:

1. The basic purpose of the initiative is to motivate new entrepreneurs to reduce unemployment.

2. For investors, Stand-Up India provides you with the right platform to get expert guidance, time, and knowledge about laws. Another is they would support you in the start-up for the initial two years of your work.

3. They also give post-setup help to the consultants.

4. Moreover, another advantage for entrepreneurs is that they do not have to bother about paying back the amount they have taken for the loan. They need to pay back the loan in seven years, which decreases the burden of repayment for the borrowers. However, a certain value needs to be paid back each year as per the borrower’s preference.

5. It can be a very positive aid in job creation, leading to the socio-economic empowerment of Dalits, SC/ST, and women.

6. It may also work as the driving strength for other Government schemes like “Make in India” and “Skill India”.

7. The scheme will aid to preserve the demographic dividend in India.

8. Access to bank accounts and technological education will lead to the financial and social inclusion of these strata of society.

Stand-Up India Loan Interest Rate

The scheme ensures the lowest suitable interest rate of the bank for that section (base rate * MCLR + 3% + tenor premium). Stand-Up India scheme interest rate is affordable for every entrepreneur.

How to get loan from Stand-Up India Scheme?

1. Visit the Stand-Up India site at www.standupmitra.in to know about this scheme.

2. Click on the “Register” button. Here you need to answer a collection of questions.

3. Here, it categorizes you as Trainee Borrower or Ready Borrower as per your reply.

4. Next, feedback given regarding the applicant’s eligibility for the loan.

5. Here, the applicant can register and login into the website.

6. Once logged in successfully, a dashboard displayed to proceed further.

Frequently Asked Questions

1. What is a Green Field project?

A Green Field project is one where new infrastructure constructed on unused land. There will be no remodeling of an existing structure.

2. How to apply for Stand-Up India Scheme?

To apply for a loan, you need to visit the nearest bank branch. Just fill and submit a loan application form, along with required documents and photographs.

3. Who are the target clients under this scheme / what kind of borrowers are suitable for loans?

SC/ST and Women entrepreneurs setting up new enterprises are eligible for loans. Typically projects in the production, trading, and service sector would be eligible for coverage under the scheme.

4. What about the Stand-Up India scheme subsidy?

Please note that there is no subsidy offered under this scheme. However, loans up to 75% of the project cost offered from scheduled commercial banks and private and public sector banks.

5. What is the loan amount under the Stand-Up India Scheme?

An eligible composite loan amount (inclusive of term loan and working capital) would be between Rs.10 lakh and up to Rs.100 lakh.

Click here to read more about this scheme.

Final Thoughts

The government of India is offering various schemes to support the citizens of India. The Stand-Up India scheme is one such scheme that focuses on strengthening the minorities such as ST, ST, and women.

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