What Is Stand-Up India Scheme? Launch Date, Benefits & More.

Table of Contents:

1. What Is Stand Up India Scheme?

2. Stand Up India Scheme Launch Date

3. Stand Up India Scheme- Eligibility

4. How To Apply For Stand Up India Scheme Online?

5. How To Avail Stand Up India Scheme Benefits?

6. 2021 Updates For Stand-Up India Scheme

7. What Is Stand Up India Scheme- Types Of Loan!

8. Stand Up India Scheme Benefits

9. Stand-Up India Loan Application- Documents

1. What Is Stand Up India Scheme?

The Stand-up India scheme intends at boosting entrepreneurship among women along with scheduled castes and tribes. This project is anchored by the Department of Financial Services (DFS), Ministry of Finance, Government of India. Stand-Up India Scheme benefits aid bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for establishing up a greenfield venture. This company can be in manufacturing, services or the trading sector. In the case of non-individual companies, at least 51% of the shareholding and managing stake shall be managed by either an SC/ST or a woman businessperson.

2. Stand Up India Scheme Launch Date

The Stand Up India Scheme was launched on the 15th of April in 2016by Prime Minister Narendra Modi as part of the government's efforts to promote entrepreneurship among women and SC & ST communities.

The Stand Up India Scheme Launch Date has helped a lot of women to grow and develop all kinds of businesses across the country. It has also empowered the women from SC/ST categories to bring their products into the limelight and earn profits via their businesses. Before we understand other things we should all learn about Stand Up India Scheme benefits and eligibility in brief.

3. Stand Up India Scheme- Eligibility

Below are the government-mandated rules that apply to all women who are interested in becoming a part of the Stand-Up India Scheme to reap its benefits.

• Loans under the Stand-Up India scheme benefits are available for only a greenfield project. GreenField implies, in this context, the first time venture of the successor in the manufacturing or services or trading sector
• SC/ST and/or women entrepreneurs; above 18 years of age
• The borrower should not be in default to any bank or financial institution to avoid legal obstacles
• In the case of non-individual enterprises, 51% of the shareholding, and controlling stakes should be held by either SC/ST and/or Women Entrepreneurs.

4. How To Apply For Stand Up India Scheme Online?

After checking all the boxes for eligibility, it's time for understanding the application process. Follow the steps below to fulfil the Procedure to Apply Online for Stand Up India Scheme Benefits. The scheme which covers all the branches of Scheduled Commercial Banks, will be approved in three likely ways:

1. Directly at a Bank Branch
2. Through SIDBI Stand-Up India Portal (www.standupmitra.in)
3. Through the Lead District Manager

5. How To Avail Stand Up India Scheme Benefits?

Through the help of the Stand-Up India benefits Portal gives information to a potential borrower on different kinds of handholding assistance from different agencies and also provides a window to get in touch with different banks to avail loans. The applicant first clicks on the "Register" button and answers a few short questions on the Registration page of the portal.

Based on the answers provided, the Applicant would be ranked as the "Trainee Borrower" or "Ready Borrower" respectively. The candidate would also be given feedback on his/her eligibility for a Stand-Up India loan. A trainee borrower/ready borrower may then choose to register and log in through the portal. Upon logging through the portal, the borrower is taken to a dashboard to finish the remaining process.

6. 2021 Updates For Stand-Up India Scheme

• 143736- Total Applications Received
• 24741- Handholding Agencies
• 11068- HHA Requests
• 34086.92 Crore Rupees- Total Amount Invested
• 125166- Sanctioned Applications Till Date
• 367- Lenders Onboarded
• 28220.46 Crore Rupees- Sanctioned Amount
• 152721- Branches Connected

7. What Is Stand Up India Scheme- Types Of Loan!

• Margin Money- The Stand-Up India Scheme envisages up to 15% margin money which can be provided in convergence with eligible Central/State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in a minimum of 10% of the project cost as their contribution.
• Working Capital - For the withdrawal of Working capital up to 10 lakh, the same may be sanctioned by the overdraft method. A Rupay debit card is to be issued for the support of the borrower. Working capital limit above 10 lakh is to be sanctioned by way of Cash Credit limit.
• 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, respectively.
• Repayment- The loan is repayable in 7 years with a maximum moratorium period of 18 months.
• Interest Rate - The rate of interest would be the lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
• Size of Loan - Composite loan of 75% of the project cost is inclusive of a term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
• Nature of Loan - Composite loan (inclusive of term loan and working capital) between 10 lakh and up to 100 lakh.
• Purpose of Loan - For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

8. Stand Up India Scheme Benefits

1. Financial Benefits
2. Benefits In Income Tax
3. Business Registration Benefits
4. Acquiring Government Tenders
5. Amazing and Huge Networking Opportunities

9. Stand-Up India Loan Application- Documents

• Proof of Identity- Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of the proprietor, partner of director (if a company)
• Proof of Business Address
• Applicant should not be a defaulter in any Bank/F.I.
• Residencial Proof- Recent telephone bills, electricity bill, property tax receipt/Passport/voter’s ID Card of Proprietor, partner of Director (if a company)
• Rental Agreement (if business premises are on rent) and clearance from pollution control board if applicable.
• SSI/MSME registration (if applicable).
• Assets, and liabilities statement of promoters and guarantors along with latest income tax returns.
• Memorandum and articles of association of the Company/Partnership Deed of partners etc.
• Photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities.
• Documents to establish whether the applicant belongs to SC/ST Category, wherever applicable.
• Projected balance sheets for the next two years in case of working capital limits and the period of the loan in case of term loan
• Documents to establish whether the applicant belongs to SC/ST Category, wherever applicable.
• Certificate of incorporation from ROC to establish whether majority stake holding in the company is in the hands of a person who belongs to the SC/ST/Woman category

These requirements may vary according to different states.

Also Read:

1) How To Open Pradhan Mantri Jan Aushadhi Kendra?
2) Government Schemes For Startups [Goals & Benefits]
3) PM Svanidhi Scheme
4) Start-up Ideas In India

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FAQs

Q- What Is Stand-Up India Scheme?

Ans- The Stand-up India scheme directs at boosting entrepreneurship among women and scheduled castes(SC) and tribes(ST). This scheme is taken care of by the Department of Financial Services (DFS), Ministry of Finance, and the Government of India.

Q- How To Apply For Stand Up-India Scheme Benefits Loan?

Ans- The Stand Up-India Scheme Benefits Loan, which covers all branches of Scheduled Commercial Banks, will be accessed in three potential ways.

• Directly at the branch
• Through Stand-Up India portal (www.standupmitra.in)
• Or Through the Lead District Manager ((LDM)