Standup India was launched by the Government of India to support entrepreneurship among women and SC & ST communities.Women entrepreneurs in India or the SC/ST community have always faced immense challenges while seeking a loan to launch their own business venture. To address this issue, under the leadership of the Prime Minister, Mr. Narendra Modi, the Government Of India launched the Stand Up India scheme in the year 2016.
The objective of the Stand Up India scheme is to provide bank loans within the range of Rs. 10 lakh up to Rs. 1 crore to at least one SC / ST and one woman borrower from, every bank branch, to set up a greenfield enterprise which may involve services, manufacturing or trade. If it is a group enterprise, then a minimum of 51% of the controlling and shareholding stake must be held by an entrepreneur who is either a woman or someone who belongs to SC or ST community. The Stand Up India Loan Scheme will be available at all branches of Scheduled Commercial banks.
The Start-up India Stand up India scheme was designed to empower new organizations to set up promising ventures in India.
To be eligible for obtaining a loan under the Stand Up India Loan scheme, an individual must comply with the following eligibility criteria:
- The individual must be above 18 years of age.
- The entrepreneur must either be a woman or belong to the SC or ST community.
- Loans will be provided under this scheme only for funding green field projects, which implies that the venture is the very first one ever being undertaken by the applicant under the trade, services or manufacturing sector.
- If the loan is being taken for a non-individual enterprise, then it is compulsory that a minimum of 51% of the shareholding / controlling stake be held by a woman, SC or ST entrepreneur.
- The loan applicant must not be an existing defaulter to any bank or financial organization.
The Stand Up India Loan Scheme will be available at all branches of Scheduled Commercial banks. This scheme comes with certain salient features. Let’s take a look.
- Nature of loan – The loan provided under The Stand Up India scheme, is a composite loan which includes, a term loan and the working capital.
- Availability of Scheme – This scheme will be provided by all Scheduled commercial bank branches and can be accessed either directly at the bank branch, via SIDBI’s Stand Up India portal or via the Lead District Manager.
- Quantum of loan –The loans provided under this scheme will range between the amounts of Rs 10 lakh and up to Rs 1 crore.
4.Purpose of loan – The loan will be provided to any woman, SC or ST entrepreneur who is undertaking a venture for the first time under the services, trading or manufacturing sector.
5.Rate of Interest – The interest rate applicable for loans under the Stand Up India scheme shall be the lowest interest rates which are offered by the bank for the particular category. 6.Security for loan – In addition to primary security, the loan may require the applicant to provide collateral security or a guarantee of CGFSIL (Credit Guarantee Fund Scheme for Stand Up India Loans), as is required by the bank.
- Repayment of loan –The maximum tenure allowed for repayment of loans taken under this scheme is 7 years, along with a moratorium period of 18 months.
- Working Capital –For the purpose of drawing working capital up to an amount of Rs 10 lakh, the funds will be sanctioned in the form of overdrafts. A RuPay debit card can also be issued to the borrower for added convenience of withdrawing funds easily. If the working capital required is above Rs. 10 lakh, the same will be provided by cash credit limit.
Start Up India entitles prospective entities to avail loans to begin their entrepreneurial journey.The Stand Up India Loan can be applied for, online by visiting the stand up India web-link,https://www.startupindia.gov.in/initiative_bank.php
The companies/ entities can register for Stand up India Start up India Scheme, online. The Stand Up India application form is available on the web-link, https://www.standupmitra.in/Login/Register
Stand Up India – Frequently asked Questions
What is the loan amount, a beneficiary can receive, under the Stand-Up India scheme?
A loan from upto Rs. 10 Lakhs to 1 crore can be expected.
What is the rate of interest charged under the Stand-Up India scheme?
The rate of interest charged under this scheme is the lowest applicable rate. However, the interest rate must not exceed the Tenor premium +3%+ MCLR.
Who are the eligible lending institutions for extending loans under this scheme?
All branches of scheduled commercial banks can lend this facility.
What is the repayment tenure under this scheme?
The repayment tenure under the Stand-Up scheme is a maximum period of 7 years.