Launched on April 5, 2016, by the Government of India, the Stand-Up India Scheme aims to promote entrepreneurship among women and individuals from Scheduled Castes (SC) and Scheduled Tribes (ST). The scheme provides bank loans ranging from ₹10 lakh to ₹1 crore to at least one SC/ST borrower and one woman borrower per bank branch for establishing Greenfield enterprises.
Objective and Purpose:
The main goal of the Stand-Up India Scheme is to foster entrepreneurship among SC/ST individuals and women by offering financial support and promoting economic empowerment. This is achieved through:
Facilitating Bank Loans: Ensuring that each bank branch extends loans to at least one SC/ST borrower and one woman borrower.
Encouraging Greenfield Enterprises: Supporting the creation of new businesses in manufacturing, services, or trading.
Creating Employment: Promoting entrepreneurial ventures to generate job opportunities.
Eligibility Criteria:
The applicant must be an SC/ST individual or a woman entrepreneur.
The loan must be for a Greenfield project, representing the beneficiary's first venture in manufacturing, services, or trading.
Applicants must be over 18 years old.
The applicant should not have any defaults with banks or financial institutions.
Key Features:
Loan Amount: Provides loans between ₹10 lakh and ₹1 crore, covering up to 85% of the project cost. This requirement can be waived if the borrower's contribution, with other support, covers more than 15% of the project cost.
Composite Loan: Covers both term loan and working capital needs.
Repayment Period: Up to 7 years with a maximum moratorium of 18 months.
Security: Can be secured with collateral or guaranteed by the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).
Interest Rate: Based on the bank's base rate (MCLR) plus 3% and tenor premium.
Application Process:
Online:
Visit the Stand-Up India Portal.
Register with your basic details.
Log in and fill out the application form with business and loan details.
Upload necessary documents and submit the application online.
Offline:
Visit a participating commercial bank branch.
Obtain or download the application form.
Complete the form with your business plan and loan details.
Attach required documents and submit them to the bank manager or officer.
Seek help from Lead District Managers (LDM), District Industries Centres (DIC), SIDBI, or NABARD for application support.
The bank evaluates the proposal based on the business plan, projected income, expenses, and creditworthiness. An interview or meeting may be required to discuss the business idea. Regular monitoring by the bank and the Stand-Up India portal ensures the venture's success.
Required Documents:
Business plan
Identity proof (Aadhar card, PAN card, etc.)
Address proof
Caste certificate (for SC/ST applicants)
Relevant licenses and permits
Project report with business idea, projected income, and last three years' balance sheets
The Stand-Up India Scheme is designed to empower women and SC/ST entrepreneurs by providing financial resources and support to start new businesses, ultimately fostering economic growth and job creation.
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