हिंदी में पढ़े
Keeping in mind the special borrowing needs of the SC/ST, and OBC entrepreneurs, the Government of India has launched the Stand Up India Scheme as part of its financial inclusion initiative. Further, with a view to providing equal opportunity to all, the loans have been framed in a way to benefit this category with relaxed criteria in case of setting up a new venture. Stand up India is among the various new social security scheme introduced by the Government of India.
We shall now look into the features of this business loan or working capital loan:
| Stand up India Scheme – Working Capital Loan – 2023 | |
| Purpose | For setting up of new enterprise in manufacturing, services, agri-allied activities by people falling under SC/ST or Women Borrowers |
| Interest Rate | Bank’s Marginal Cost Lending Rate (MCLR) + 3% + Tenor Premium |
| Loan Amount | Min. Rs. 10 lakh & Max. Rs. 1 crore |
| Age Criteria | Minimum 18 years |
| Repayment Tenure | 7 years with max. moratorium period of 18 months |
| Shareholding Stake | 51% held by SC/ST & Women Entrepreneur |
| Working Capital Limit | Above Rs. 10 lakh in for of Cash Credit limit |
| Margin | 25% |
Stand up India Scheme shall be operated by all the branches of the Scheduled Commercial Banks in India.
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Interest Rates under Stand Up India Scheme – 2023
The interest rate under this scheme shall be the lowest interest rate offered by the bank for a particular category of lending. The ceiling rate of interest is fixed at the respective Banks’ Marginal Cost Lending Rate (MCLR) + 3% + Tenor Premium
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Eligibility Criteria
The loan would be extended to any woman, SC/ ST entrepreneurs who are undertaking a venture in the services, trading, or manufacturing sectors. The loans provided under this scheme range from Rs. 10 lakhs up to Rs. 1 crore to at least one SC/ ST and one woman borrower from every bank branch.
In the case of a group enterprise, a minimum shareholding of 51% must be mandatorily held by an entrepreneur who is either a woman or a member of the SC/ST community. This loan scheme is available at all branches of scheduled commercial banks in India.
Additional Eligibility Criteria
- The entrepreneur must either be a woman or belong to the SC/ST community to avail this loan
- Loans will be extended under this scheme only for funding greenfield projects in services, trade, or manufacturing sectors. Thus, the loans cannot be utilized to fund the operations of an already-existing business
- Applicants must have a strong track record of creditworthiness and should not be existing loan defaulters
Also read about: Business Loan Eligibility for Startup
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Types of Loans under Stand Up India Scheme
- The loans are the nature of composite loans that includes both term loans and working capital assistance. The loan value will generally cover 75% of the cost of the project. This includes both components – working capital and term loan. The exception to this is when the contribution of the borrower, along with financial support being provided by other schemes, amounts to more than 25% of the overall cost of the project. In case of withdrawal of working capital up to Rs 10 lakh, the funds will be disbursed in the form of overdrafts
- A RuPay debit card may be issued to the borrower for the additional convenience of easy fund withdrawal. In case of working capital assistance in excess of Rs 10 lakhs, the same will be extended by a cash credit limit
- Margin Money requirement – The scheme functions under the pretext that 25% margin money towards the cost of the project will be provided by Government schemes. However, 10% of the project cost must be borne by the borrower
- Collateral cover – The bank may insist on collateral security or a guarantee of CGFSIL (Credit Guarantee Fund Scheme for Stand Up India Loans), in addition to the primary security
Read Also: Pradhan Mantri MUDRA Loan Yojana: All you need to know
Repayment Tenure for Stand Up India Scheme (SC, ST & OBC)
The tenure of loan repayment varies from 1 year to 7 years, including a moratorium period of 18 months.
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Documents Required
- Duly filled application form with passport size photographs
- Self-attested identity proof like voter card, driving license, passport, or Aadhar card
- Proof of residence: Passport, Voter ID card, Driving License, Utility Bills (Electricity/Water/Telephone Bills)
- Business Address Proof
- Income Proof: Bank statements and ITR
- Quotations of the estimated cost of machinery with details
- Certificate validating SC, ST, or OBC status
- Any other document required by the lender
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Entrepreneurial support for Women and SC/ST communities (2021-2022)
| Total Applications | 185671 |
| Total Amount | Rs. 43896.59 crore |
| Sanctioned Applications | 165523 |
| Sanctioned Amount | Rs. 37482.15 crore |
| Handholding Agencies | 24613 |
| Lenders On-boarded | 81 |
| Branches Connected | 136611 |
| HHA Requests | 3212 |
Source: https://www.standupmitra.in/
The Stand-up India program helps create an entrepreneur-friendly ecosystem to provide support for the conduct of business by members of the SC, ST, and OBC communities. This is in recognition of the challenges faced by them as regards setting up a new enterprise, fundraising, and other timely assistance required from time to time.
More Information:
| How to Get Business Loan for Self Employed |
| How to get a loan for a restaurant business in India |
| What is a business loan for doctors |
| How to get an SME Loan |