Stand Up India SchemeOn April 5th, 2016, the Hon’ble Prime Minister of India launched theStand Up India scheme to assist SC, ST, and women entrepreneurs in establishing new businesses and obtaining bank loans for the same. The Stand Up India programme is part of the Startup India Action Plan 2016, which aims to promote startups and new businesses in India. The government intends to create opportunities for job seekers to become job creators through the Stand Up India scheme. All scheduled commercial bank branches in India are covered by the scheme.
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On April 5, 2016, the Hon’ble Prime Minister (PM) launched the Stand-Up India (SUI) scheme to finance SC/ST and/or Women Entrepreneurs.
The SUI scheme aims to provide bank loans ranging from Rs.10 lakh to Rs.1 Crore to at least one Planned schedule Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for the establishment of a greenfield enterprise. This business could be in production, services, agriculture-related activities, or trading. In the case of non-individual enterprises, a SC/ST or woman entrepreneur must hold at least 51% of the shareholding and controlling stake.
Concerning the Stand Up India Loan Scheme 2023
The Indian government has launched the Stand Up India Loan Scheme. Bank loans are made available to scheduled castes, scheduled tribes, and women borrowers under this scheme. Bank loans will range between Rs 10 lakh and Rs 1 crore. This scheme will provide a loan to at least one scheduled caste or scheduled tribe borrower and at least one woman lender per bank for the establishment of a Greenfield Enterprise. This business could be in the manufacturing, service, agricultural, or trading sectors. If the enterprise is not an individual, SC/ST or women entrepreneurs must hold at least 51% of the shareholding and controlling stake.
This scheme was created to assist SC/ST and female entrepreneurs in establishing businesses, obtaining loans, and receiving other forms of assistance as needed. All scheduled commercial bank branches will be covered under this scheme, either directly at the branch or through the SIDBI stand-up India portal via the lead district manager.
Goal:
The Stand-Up India scheme aims provide the bank loans ranging from 10 lakh to crores to at least one Planned schedule Caste (SC) or Scheduled Tribe (ST) lender and at least one woman borrower per bank branch for the establishment of a Greenfield Project. This business could be in manufacturing, services, or trading.
Eligibility
SC/ST and/or female entrepreneurs over the age of 18 are eligible.
Loans under the scheme are only available for greenfield projects. In this context, green field refers to the beneficiary’s first venture in the manufacturing, services, or trading sectors.
In the case of non-individual enterprises, either SC/ST or Women Entrepreneur must hold 51% of the shareholding and controlling stake.
Borrower must not be in arrears with any bank or financial institution.
What Are the Benefits of the Stand-Up India Initiative
Loan Type It is a composite loan (including working capital and term loan) with a loan amount ranging from 10 to 1 crore.
Loan Purpose To assist SC/ST/Women entrepreneurs in establishing new businesses in the manufacturing or service sectors.
Loan Amount Individuals can use the Stand-Up India Loan Scheme to obtain a composite loan covering 75% of the cost of their project. The loan consists of both working capital and a term loan. This benefit will not be available if the contribution from borrowers and convergence support exceeds 25% of the total project cost under any other scheme.
Interest Rate The interest rate would be the bank’s lowest applicable rate for that category (rating category). It must not be greater than the sum of the base rate (MCLR),3%, and tenor premium.
Security In addition to primary security, this composite loan may be secured by the Credit Guarantee Scheme for Stand-Up India Loans, or CGFSIL, as determined by collateral security or the banks.
Repayment This loan is simple to repay in 7 years. The maximum moratorium period under this scheme is also 18 months.
Working Capital Applicants may obtain up to ten lakh in working capital through an overdraft. A Rupay debit card will be issued for the borrower’s convenience. Any working capital in excess of ten lakh rupees will be sanctioned by the Cash Credit limit.
Margin Money This scheme allows for a margin of up to 15%. It is available in conjunction with eligible State or Central schemes. Such schemes can be used to meet margin money requirements or to obtain subsidies. An applicant will be required to contribute at least 10% of the project cost.
Documents Required for Stand Up India Loan Application
When applying for a Stand-Up India Loan Scheme, the following documents must be submitted:
Aadhaar Card, Voter ID Card, Driving License, Passport, PAN Card, and other forms of identification are acceptable.
Proof of residence, such as a utility bill, property tax receipt, bank passbook, and so on.
Proof of Business Address, such as a Certificate of Incorporation, GST certificate, MSME certificate, and so on.
Rent agreement for the company, if its activities are carried out on rented property, and Pollution Control Certificate, if applicable.
Memorandum of Association (MOA) of the company, Articles of Association (AOA), Partnership Deed, and so on.
Certificate of Incorporation and Registrar of Companies (ROC).
Income Tax Returns (ITR) of the company’s promoters and guarantors, as well as a statement of assets and liabilities, are required.
The company’s projected balance sheets for the next two years (if it works with working capital limits) and the term loan period
A copy of all title deeds or lease deeds for all properties owned by the company as collateral.
If applicable, a certificate of SC/ST caste.
Factors required to participate in the Stand Up India Loan Scheme
Certain factors will have a direct impact on the availability/approval of loans under the Stand Up India Scheme. They are as follows:
The borrower’s primary residence address.
Which category they fall under – SC, SC, or woman.
The type of business that requires a loan.
Whether or not the desired business location is available.
Whether or not the borrower required assistance in developing their project plan.
The amount of money that the borrower is putting up out of their own pocket to start the business.
Is the borrower in need of financial assistance to raise the amount of margin money.
Whether or not the borrower has prior business experience.
How to Register for the Stand Up India Scheme
Go to the official website of Stand-up India (https://www.standupmitra.in/Login/Register).
Complete the registration form by first entering the business address, state, district, village, town, city, and pin code.
Determine whether the promoter is a woman with a 51% stake or higher, and the same is true for the SC/ST category.
The next applicant can select the nature of the planned business, the desired loan amount, the nature and description of business activity, the status of business space, and the drop-down of first-time entrepreneurs.
He/she must also mention his/her previous business experience, including business activity, years of experience, and the nature of the business.
Next, select the desired hand holding support based on need and interest.
The final and final step of registration concerns the applicant’s personal information names, enterprise name, user name, mobile number, email address, and type of constitution.
By clicking on register, applicants can apply for the Stand-up India scheme with the relevant financial institution, and their officials will contact them for further formalities.
1)What was the Stand-Up India initiative?
The Stand Up India Scheme provides bank loans ranging from 10 lakh to 1 crore to at least one scheduled caste (SC) or scheduled tribe borrower and at least one woman per bank branch for the establishment of a greenfield enterprise. This business could be in manufacturing, services, or trading.
2)Who is eligible for the Stand-Up India scheme?
The Stand-Up India scheme aims to provide bank loans ranging from 10 lakh to 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for the establishment of a Greenfield Project.
3)WHO initiated the Stand-Up India initiative?
Narendra Modi, Prime Minister
On 15 April 2016, Prime Minister Narendra Modi launched the Stand-Up India scheme as part of the government’s efforts to support entrepreneurship among women and SC/ST communities.
