| Credit Guarantee Scheme for Stand Up India | |
|---|---|
| Interest Rate | As per bank’s MCLR + 3% + tenor premium |
| Age Criteria & Eligibility | Min. 18 years, SC/ST Women |
| Loan Amount | Min. Rs. 10 lakh – Max. Rs. 1 crore |
| Repayment period | Max. up to 7 years |
| Stake holding | At least 51% should belong to SC/ST or women entrepreneur |
| Collateral | Not required |
This scheme allows an individual to apply for bank loans ranging from Rs 10 lakh to Rs 1 crore at minimum to at least one SC/ST borrower and at least one woman borrower per bank for setting up their enterprise. It can be manufacturing, services, or the trading sector. In the case of a group of people handling an enterprise, at least 51% of shares must belong to either SC/ST or must be a women entrepreneur.
Eligibility Criteria
Where to apply for CGSSI loan
The loan can be applied in following ways:
Loan Details under CGSSI
Apply for loan under CGSSI
- The first step is to apply for a loan through the online portal where information on certain parameters is collected which concludes the initial registration process.
- After answering the questions asked during the initial stage, the borrowers/applicants are categorized into two halves, as ‘ready borrower’ or a ‘trainee borrower’.
- Ready borrowers: – If the applicant can sustain the business without any handholding support and has experience then the loan can be sanctioned directly. The application number is provided which can be used to track the status of the loan application. Information about the applicant/borrower is sent to the concerned bank, the LDM and the offices of NABARD / SIDBI designated by Stand-Up Connect Centers. The loan application now can be tracked through the application number.
- Trainee Borrower: – If the applicant cannot sustain business on their own and handholding support is required. Then the applicant/borrower is linked to the LDM of the concerned district and the relevant office of NABARD/SIDBI. The LDM monitors the process of work until no more handholding support is required. In the following ways the support is provided:
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- Financial training from FLCs (Financial Literacy Centers)
- Skill development from skill centers
- MSME development from institutes
- Schemes for margin money supported by related offices
- Expert mentoring support from established businesses
- Creating utility connections with the help of utility offices
