The government of India in the recent past has launched many initiatives, but the Stand of India Scheme is unique. The main aim of the scheme is to boost the entrepreneurial capabilities of the SC/ST and women. The Stand-up India scheme was launched in April 2016 with the backing of DFS (Department of Financial Services) and is being monitored by the Ministry of Finance. The scheme offers Stand up India business loans to eligible applicants who can take financial help from various banks and NBFCs across the country. Stand up India is a part of the Start-up India scheme which was launched a few months before the Stand-up India scheme.
Features of the Stand-Up India Scheme
It is notable here that both Stand-up India and Startup India schemes are similar and are dedicated to boosting the entrepreneurial spirit into entrepreneurs. However, Start-up India scheme offers loans to everyone but the Stand-up India provides loans only to the SC/ST community and women entrepreneurs who are facing difficulties in setting up their businesses.
The prominent features of this scheme are:
- Aim: The aim of the scheme is to remove the barriers faced by the SC/ST community and the women entrepreneurs by providing them loans for greenfield projects including services, manufacturing, and trade.
- Loan Amount: The loan amount ranges between Rs 10 lakh and 1 crore. However, if the borrower has invested greater than 25% then a 75% cap of finance will not apply.
- Holding Pattern: In case of group enterprise, the minimum of 51% of stake and shareholdings should be belonged to a woman entrepreneur or a member of the SC/ST community.
- Nature of Loan: Under the Stand-Up India loan scheme, it provides loans for long term and working capital loans.
- Loan Delivery: It will disburse the loans via all commercial banks, including some NBFCs. The pattern of these loans is designed by the SIDBI’s Stand up India portal or the lead district manager.
- Security: For the primary security, the applicant needs to provide a collateral or a guarantee under CGFSIL (Credit Guarantee Fund Scheme for Stand-Up India Loans) as the bank wants.
- Loan Repayment: The maximum repayment tenure allowed under this scheme is 7 years. However, there is a moratorium period of 18 months is also available.
- Working Capital: For the purpose of drawing a working capital under this scheme, there is a provision of an overdraft facility. It also provides borrowers with a RuPay debit card which smoothen withdrawing funds. In case of excess borrowing more than Rs 10 lakh, the same can be availed by cash credit limit.
- Margin Money: Under this scheme, it is expected that State/Central government will provide Stand Up India scheme Subsidy up to 25% and the borrower need to invest at least 10% of the overall project cost.
Stand Up India Scheme Eligibility
- The age of the individual entrepreneur must be at least 18 years.
- The applicant should be a woman or a member of the SC/ST community.
- Under this scheme, the loans will be provided only for funding green field projects that should come under the trade, services or manufacturing sector.
- The applicant should not be a defaulter to any financial institution in the past.
Deciding Factors to Get Stand Up India Loan
- The borrower’s location or residence
- Category of the applicant among SC/ST or woman
- Nature of the business for which the loan is required
- if the Help for preparing the project plan is required or not
- The amount of self-investment in the business venture by the applicant.
- Help needed to raise the margin money required or not.
- Past experience to avail loans for such ventures.
Documents Required for Stand-Up India Loan
- Identity Proof: Any valid identity proof required by the bank.
- Address Proof: Any valid address proof document of the individual and the business firm.
- Memorandum of the article of the association of the firm.
- It requires a partnership deed with a partnership firm.
- Copies of the lease deeds.
- Copy of the rent agreement
- Last 3 balance sheet of the company
- Asset and liability statements of both the borrower and the guarantor.
Stand Up India Registration Process:
- Visit the official website of the Stand-Up India.
- Enter the full details of the business location.
- Select the applicant category from SC/ST and woman. And state whether the stake is 51% or more.
- Select the nature of the business.
- Enter the loan amount desired and description of the business.
- Enter the details of the premises, etc.
- Fill the fields with past business experience including the tenure.
- Select if the need for the hand-holding is required.
- Enter all personal details like the name of the enterprise and the constitution
- Select the ‘Register’ button to complete the process.