Stand Up India Scheme for Financing SC/ST and/or Women Entrepreneurs. The Stand-Up India program’s goal is to make bank loans between 10 lakh and 1 crore available to at least one borrower from a Scheduled Caste (SC) or Scheduled Tribe (ST) and at least one woman borrower every bank branch for the purpose of starting a new, greenfield business. This business may be in the manufacturing, service, agri-related, or trading sectors. In the event of non-individual businesses, a SC/ST or woman entrepreneur must possess at least 51% of the stock and the controlling interest.
What was Stand-Up India scheme?
The Stand Up India Scheme intends to provide at least one borrower from a Scheduled Caste (SC) or Scheduled Tribe (ST) and at least one woman borrower per bank branch with access to bank loans between Rs. 10 lakh and Rs. 1 crore for the establishment of a new enterprise.
This business may engage in manufacturing, services, agribusiness, or trading.
A woman or businessperson from the SC/ST community must hold at least 51% of the company’s shares and control in non-individual enterprises.
Who launched Stand-Up India scheme?
The Hon. Prime Minister (PM) introduced the Stand-Up India (SUI) programme for funding SC/ST and/or female entrepreneurs on April 5, 2016.
Stand Up India Scheme Eligibility
- SC/ST/women business owners that are at least 18 years old
- Only Green Field Projects are eligible for loans under the programme. In this sense, the term “green field” refers to a beneficiary’s first effort into the manufacturing, service, agri-allied, or trading sectors.
- Non-individual businesses require that either SC/ST or female entrepreneurs hold 51% of the stock and the controlling interest.
- The borrower shouldn’t owe any banks or other financial institutions any money.
Stand-Up India Scheme Procedure to Apply Online
- Directly at a Bank Branch
- Through SIDBI Stand-Up India Portal (www.standupmitra.in)
- Through the Lead District Manager
How to Avail Stand Up India Scheme
- The stand-up India Portal gives potential borrowers information on different types of hand holding assistance from various organizations and offers a channel to contact banks to apply for loans.
- The candidate initially clicks “Register” and responds to a few brief questions on the portal’s Registration page.
- The applicant would be categorized as either the “Trainee Borrower” or the “Ready Borrower” depending on the response. Also, feedback on the applicant’s suitability for a stand-up India loan will be provided.
- A potential borrower can then choose to sign up and log in using the portal.
- The borrower is brought to a dashboard after logging in to the site.
Purpose of Loan
For setting up a new enterprise in manufacturing, services, agri-allied activities or the trading sector by SC/ST/Women entrepreneur.
Stand Up India Scheme Interest Rate
The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
Stand Up India Scheme Repayment
The loan is repayable in 7 years with a maximum moratorium period of 18 months.
Stand Up India Scheme Security
Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
Is Stand-Up India scheme successful?
To beneficiaries, 24 loans amounting to `4.53 crore has been sanctioned. Employment has been generated for more than 2,000 youth under the Scheme. Several entrepreneurial success stories have come out in the District by means of Stand-up India Scheme.
What are the benefits of Stand-Up India scheme?
According to their needs, the Stand Up India programme intends to offer persons from the country’s scheduled castes, scheduled tribes, or women loans ranging from Rs. 10 lakhs to Rs. 1 crore. To encourage entrepreneurship among them is the goal.
What is the difference between Startup India and Stand-Up India?
The Stand-up India scheme provides business opportunities to the minority groups (scheduled castes and scheduled tribes) and women entrepreneurs. On the other hand, Start-up India provides business opportunities to companies that fall in the category of Start-up and may not generate adequate revenue.
What is the maximum loan under Stand-Up India scheme?
Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.
Is there any subsidy in Stand-Up India?
No, this programme does not give a subsidy. Nonetheless, scheduled commercial banks as well as private and public sector banks give loans up to 75% of the project cost at enticing interest rates.