Stand Up India Scheme was started by the Government of India to support women entrepreneurs and the SC/ST community entrepreneurs. This scheme provides funds ranging between Rs 10 lakh to Rs 1 crore in order to support them in establishing their enterprises.
In this article, we will be discussing the Stand-Up India Scheme in detail. We will cover its objective, benefits, the online application process, documents required, and many other related things. So, if you are interested in knowing about this scheme, go through the whole article carefully.
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Stand Up India Scheme 2021
This scheme provides loans to set up Greenfield enterprises. Every Bank branch must provide a loan of Rs 10 lakh to Rs 1 crore to at least one borrower from SC/ST community and one woman entrepreneur. These Greenfield enterprises include the trading sector, allied agricultural activities, manufacturing, and service sector projects. If it is a non-individual enterprise, in that case, at least 51% of the controlling and shareholding stake should belong to an SC/ST or woman borrower.
Benefits of Stand Up India Scheme
- Rs 10 lakh-Rs one crore loan is provided.
- It encourages women entrepreneurs and entrepreneurs belonging to the unprivileged section of society.
- It will lead to economic empowerment.
- By supporting young entrepreneurs, the government also targets creating employment, a major issue in the country.
Key Points of Stand Up India Scheme
- The interest rate is meant to be set up minimum by the bank, and the banks can’t exceed (Base rate +MCLR + 3% + tenor premium).
- Entrepreneurs who are 18 or above can only apply for the loan under Stand-Up India Scheme.
- The loan under this scheme is only provided to support Greenfield projects which include ventures in the trading, manufacturing, service sector for the first time.
- The maximum time provided for the repayment is seven years and the maximum moratorium period is 18 months.
- This scheme does not provide any kind of subsidy.
Loans Under Stand-Up India Scheme
The maximum loan amount that is provided is 75% of the total project cost that includes the term loan and working loan. It does not apply if the borrower’s contribution towards this project, along with the assistance from another scheme, exceeds 15% of the project cost. Also, the borrower is required to contribute towards 10% of the total project cost.
- Primary security.
- Collateral security.
- Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL)
We have already covered the repayment period details, and interest rate applied on the loans offered through Stand-Up India Scheme.
Stand Up India Scheme Application Process
Anyone willing to take advantage of this scheme has first to visit any nearby branch of any Bank to check if the 1-person quota for Stand-Up India Loan is available or not for women and SC/ST community entrepreneurs. If it is available, then he/she can collect the application form and, after filling it with correct details and attaching the documents required, can submit it to the bank. This can also be also done online. So let’s check the step-by-step guide for registering for Stand-Up India Scheme online.
1. First of all, go to the official portal for Stand-Up India Scheme, where you can get the option for viewing the online registration form for Stand Up India Scheme.
2. While filling the registration form, you are first required to enter the details related to the business location, I.e., the address, state, district, village, town, city, pin code, etc.
3. The next step asks for promoters’ details and the nature of business, whether it is a woman entrepreneur or someone belonging to the SC/ST community, and other details.
4. In the last section of the application form, personal details like the applicant’s name, enterprise name, username, mobile number, type of constitution, etc., are asked.
5. After completing everything, you have to hit the submit button to register with this scheme.
6 Later, the officials will review your application and will contact you for further proceedings.
Here are some of the eligibility criteria that anyone applying for this scheme has to meet.
- The minimum age of the applicants should be 18 years.
- The applicant should be a resident of India.
- No criminal records should be there against the applicant, and he/she should not have defaulted to any bank/NBFC in the past.
- The loan under Stand-Up India Scheme is only allotted for Green Field projects.
- The woman or the SC/ST entrepreneur must hold at least 51% of the shareholding and controlling stakes if it is a non-individual enterprise.
- Identity proof.
- Residential proof.
- Business address proof.
- Previous year balance sheets.
- Memorandum and articles of association of the enterprise.
- Partner’s partnership deed.
- Rent agreement.
- Lease deeds photocopies.
- Asset and liabilities statement.
- Recent photographs.
For more information or if you have any queries, you can contact the officials via email or the helpline number to seek help.
Helpline Number: – 1800-180-1111
Hope this article was helpful to you.