Stand Up India Scheme: Features, Eligibility, Benefits, Interest Rate

The Government of India has launched a new scheme Stand Up India, to increase women’s participation in the economy. This scheme provides funding to women entrepreneurs and those from the SC/ST communities. Under this scheme, the government provides loans ranging from ₹10 lakh to ₹1 crore to women. This scheme aims to promote businesses serving the service, manufacturing, and merchandising sectors.

Stand-Up India Scheme is a flagship initiative by the Government of India designed to promote entrepreneurship among SC ST women entrepreneurs. Under the plan, bank loans ranging from Rs.10 lakh to Rs.1 crore can be obtained. In this article, we’ll explore the Stand Up India Yojana – including its purpose, eligibility criteria, features, and benefits.

What is Stand Up India Scheme?

Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST). The scheme is anchored by Department of Financial Services (DFS), Ministry of Finance, Government of India. Stand Up India scheme is applicable for all scheduled commercial bank branches in India. The Stand Up India Scheme envisages 25% margin money which can be provided in convergence with eligible central / state schemes. The scheme applies to all Scheduled Commercial Bank branches.

Benefits of Stand Up India Loan Scheme

The scheme provides a comprehensive support system for entrepreneurship development:

• Loan Amount: Composite loans (inclusive of term loan and working capital) between ₹10 lakh and ₹100 lakh.
• Purpose of Loan: For setting up a new enterprise in manufacturing, trading, or the service sector by SC/ST/women entrepreneurs.
• Interest Rate: The interest rate will be the lowest applicable rate of the bank for that category (not to exceed base rate (MCLR) + 3% + tenure premium).
• Repayment: The loan can be repaid over seven years. Also, the scheme offers a moratorium period of up to 18 months.

Stand Up India Eligibility Criteria

To avail of the Stand Up India loan scheme, applicants must meet specific Stand Up India eligibility requirements:

• Only SC/ST individuals and women entrepreneurs can get the benefits of the scheme.
• The applicant must be aged above 18 years.
• Only greenfield projects can apply for the loan scheme.
• The borrower should not have defaulted at any bank or financial institution.

Important documents for taking a loan

• Identity Proof: Any valid photo identity proof acceptable to the bank.
• Address Proof: Any valid address proof document of the individual and the business firm.
• Memorandum of Articles of the Association of the Company.
• Partnership deed in the case of a partnership firm.
• Copies of the lease deeds.
• Copy of the Rent Agreement.
• The last three balance sheets of the company.
• Assets and Liability statements of both the borrower and the guarantor.

What Questions Can You Expect for Registering?

The applicant will have to answer the following questions at the time of registering on the portal:

• Location of the borrower.
• Category, as in SC, ST, or woman.
• Type of business planned.
• Location of business set up.
• Assistance required to prepare a project plan.
• Technical and Financial skills/training required.
• Current bank account details.
• Own investment amount for the project.
• Whether help is required to raise the margin amount.
• Experience in business management.

How to Apply for The Stand-Up India Scheme

Step 1: Visit the Stand-Up India portal at www.standupmitra.in to understand the scheme details better.

Step 2: Click on the ‘Register’ button and answer a set of questions prompted.

Step 3: Based on your response, you will be categorised either as Trainee Borrower or Ready Borrower.

Step 4: Feedback will be given regarding the eligibility of the applicant for the loan.

Step 5: The applicant can then register and login to the portal.

Step 6: Upon logging in successfully, a dashboard will be displayed to the applicant to proceed with further actions.

Once you have completed registration, you are eligible to initiate the StandUp India Loan Application process. Stand Up India aims to empower every Indian and enable them to be independent. The programme, consequently, aims to create an ecosystem that facilitates and continues to provide a supportive environment for doing business.