Stand Up India Scheme

The Stand-Up India scheme aims to encourage all scheduled bank branches in extending loans of Rs10 lakh-Rs 1 crore to at least one SC/ST borrower and at least one women borrower per bank branch for setting up their own greenfield enterprises. In the case of non-individual enterprises, SC/ST or women entrepreneurs should hold a minimum of 51% of the shareholding and controlling stake in the enterprise.

Apart from linking borrowers to scheduled banks for loans, the Stand Up India Scheme online portal, developed by Small Industries Development Bank of India (SIDBI), offers guidance to entrepreneurs to set up business enterprises, starting from training to filling up loan applications, as per bank requirements. The scheme provides borrowers the information about various entities offering the following handling support:

Interest Rate

The interest rate of loans under Stand Up India Scheme would be the lowest applicable rate of the bank for the rating category. The interest rate should not exceed the base rate + 3% and tenure premium.

Loan Amount

Nature of loan: The scheme offers composite loans (working capital and term loan) ranging from Rs 10 lakh to Rs 1 crore.

Size of the loan: Loan amount offered under this scheme, including the term loan and working capital loan facilities, is 85% of the project cost. However, if the borrower’s contribution and support from other schemes exceed 15% of the project cost, the provision of 85% of the project cost as a loan amount would not apply.

For working capital of up to Rs 10 lakhs: The loan will be in the form of an overdraft. Rupay Debit Card will be issued to the borrower.

For working capital above Rs 10 lakhs: The loan will be sanctioned in the form of a Cash Credit limit.

Repayment Tenure

The repayment tenure of the Stand Up loans is 7 years, including a moratorium period of up to 1.5 years.

Security

Apart from the primary security, banks may require additional security from the borrower in the form of collateral security or credit guarantee cover offered through the Credit Guarantee Scheme for Stand-Up India (CGSSI)

Margin Money

Borrowers availing Stand Up India Scheme would have to offer 15% of the project cost margin money, with their own contribution being at least a minimum of 10% of the project cost while the rest of the margin money requirement can be arranged in convergence with eligible Central or State schemes

Prospective borrowers can avail loans under the Stand Up India Scheme by directly visiting the branches of Scheduled Commercial Banks or through SIDBI’s Stand Up India Portal or through the Lead District Manager (LDM). The registration under Stand Up India Scheme is free of cost.

Stated below are the eligibility criteria for availing loans under the Stand-Up India Scheme:

Stand- Up India Loan Application Documents

For loans above Rs 25 lakhs