What is Stand-Up India Scheme?
Stand-Up India Scheme provides funding to women entrepreneurs and people who come under the SC/ST category of the society. Stand-up India scheme was introduced by the Government of India to provide credit services majorly to SC/ST category people. The primary purpose of this scheme is to help banks in offering loans between Rs. 10 lakh and Rs. 1 crore to at least one SC/ST applicant and one woman entrepreneur per bank branch in enabling them to set up their own business or enterprise.
Download Loan Application Form for Stand Up India Scheme by visiting standupmitra.in or by Clicking here
|Stand-up India Scheme – Interest Rate & Eligibility – 2022|
|Interest Rate||Bank’s MCLR + 3% + Tenor Premium|
|Repayment tenure||Max. 7 years with Moratorium Period up to 18 months|
|Min. age criteria||18 years for SC/ST and Women Entrepreneur|
|Loan amount||Between Rs. 10 lakh and Rs. 1 crore|
|Loans offered for||Only Green Field Projects (first-time venture)|
|Shareholding stake||51% for Non-Individual Enterprises|
|Borrower’s financial repayment status||Never defaulted to any bank or NBFC|
|Working Capital Limit||Up to Rs. 10 lakh in form of Cash Credit limit|
Note: The mentioned interest rates are subject to change and depend on the sole discretion of the Stand-up India authority, bank, NBFC, and RBI.
Stand-up India scheme shall be operated by all branches of India’s scheduled commercial banks. The main focus of this scheme is to provide funding to enterprises serving the services, manufacturing, and trading sectors. For non-individual enterprises, at least 51% of the controlling and shareholding stake could be held by either a women borrower or an individual belonging to SC/ST.
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Features of Stand-up India Scheme
- The interest rate applicable is set by the desired bank for that category that is banks’ not to exceed MCLR + 3% + Tenor Premium
- The minimum age criteria to avail loan under the Stand-up scheme is 18 years for SC/ST people and women applicants
- Loans are only offered for Green Field Projects which means for entrepreneurs who are venturing in manufacturing or trading sectors for the first time
- Applicant should not have defaulted before to any bank or NBFC
- Composite loan (that includes term loan and working capital) is offered between Rs. 10 lakh and up to Rs. 1 crore
- Loans may be secured by collateral/ security or guarantee of Credit Guarantee Fund Scheme, as decided by the bank
- Loans can be used for SC/ST and women entrepreneurs to set up new enterprises only in the trading, services, and manufacturing sectors
- The repayment period is a maximum of up to 7 years with a maximum moratorium period of up to 18 months
- No subsidy is offered under Stand-up India Scheme
Stand-up India Loan Details
The loan amount offered is 75% of the project cost that is inclusive of a term loan or working capital loan. The Standup Mitra applicant shall not be applicable if the borrower’s contribution along with conjunction support from any other scheme surpasses 25% of the project cost.
- Interest Rate: (Base Rate + (MCLR) + 3% + Tenor Premium)
- Loan Amount: Minimum Rs. 10 lakh & Maximum up to Rs. 1 crore
- Repayment Tenure: Up to 7 years, including moratorium period of 18 months
- Collateral: Required as primary security or guarantee of Credit Guarantee Scheme for Stand-up India Loans (CGFSIL)
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How to Apply for Loans under the Stand-Up India Scheme?
To apply for loans under Stand-Up India, applicants need to visit the nearest bank branch and find out whether a 1-person quota for SC/ST category or one women entrepreneur per bank branch is available or not. If yes, then he/she can fill in and submit the application form along with required documents to apply for a loan under the Stand-up India scheme. The application form can be downloaded from standupmitra.in or the standup India portal.
- Minimum age of 18 years for SC/ST or women entrepreneur
- Loan available only for Green Field Projects
- At least 51% of shareholding stake to be held with either SC/ST or women entrepreneur, in case of non-individual enterprise
- Applicant should not have defaulted in any previous loan(s)
Steps to Register for Stand-up India Scheme
Step 1: Visit Stand-up India’s official website ‘https://www.standupmitra.in/Login/Register’
Step 2: Fill in the registration form by firstly entering the business location that includes business address, state, district, village, town, city, and pin code.
Step 3: Select whether promoter belongs to women category and holds 51% stake or higher and same applicable to SC/ST category.
Step 4: Next applicant can select the nature of the business planned, desired loan amount, nature and description of business activity, the status of space for business, and select the drop-down of first-time entrepreneurs.
Step 5: Further he/she needs to mention his/her past business experience by mentioning business activity, years of experience, and nature of business.
Step 6: Next one needs to tick the desired handholding support, as per the need and interest.
Step 7: Last and final step of registration is regarding the applicant’s personal information that names, name of the enterprise, user name, mobile number, email, and type of constitution.
Step 8: By clicking on register applicants will be able to apply for the Stand-up India scheme with the respective financial institution and their officials will contact for further formalities.
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- Duly filled application form with Passport-sized photographs
- Identity Proof: Passport, driving license, voter’s ID card, PAN card, etc.
- Residence Proof: Voter’s ID card, passport, latest electricity and telephone bills, property tax receipt, etc.
- Business address proof
- Partnership deed of the partners
- Copies of lease deeds or Rent agreement
- Last 3 years’ balance sheets of association
- Assets and liabilities statement of the promoters and guarantors
- Any other document required by the bank
Stand-up India has always worked to promote economic empowerment and helped in the creation of employment. The scheme is set to benefit a minimum of 2.5 lakh borrowers through 1.25 lakh bank branches located nationwide. This scheme provides a digital platform to support entrepreneurs from SC/ST category and women entrepreneurs via credit guarantee, handholding support, and providing information on financing. Additional services offered under this scheme are training, mentorship, guidance, and skill development programs for entrepreneurs.
Entrepreneurial support for Women and SC/ST communities (2020-2021)
|Total Amount||Rs. 33260.72 crore|
|Sanctioned Amount||Rs. 27453.09 crore|
Source: https://www.standupmitra.in/ (Data as of October 2021)
Stand Up India Bank’s List
|Axis Bank||Indian Bank|
|Bank of Baroda||Indian Overseas Bank|
|Bank of India||Jammu & Kashmir Bank Ltd|
|Bank of Maharashtra||Punjab and Sind Bank|
|Canara Bank||PNB Bank|
|Central Bank of India||State Bank of India|
|ICICI Bank||Union Bank of India|
|IDBI Bank||UCO Bank|
FAQs on Stand-up India Scheme
Q. Who is eligible for Stand-Up India?
Ans. SC/ST and or women applicants with minimum of 18 years of age are eligible to apply for loans under Stand-up India Scheme.
Q. How can I apply for Stand-Up India?
Ans. You can apply for a loan under the Stand-up India scheme by visiting the nearest bank branch and filling and submitting the loan application form, along with required documents and photographs.
Q. Is there any subsidy in Stand-Up India?
Ans. No, there is no subsidy offered under this scheme. However, loans up to 75% of the project cost are offered at attractive interest rates from scheduled commercial banks, as well as private and public sector banks.
Q. What is the difference between Startup India and Stand-Up India?
Ans. Startup India is an online entrepreneurship platform for startups that makes them use various tools and resources for their business and allows them to create a network for them to promote and grow their business. Whereas, Stand-Up India it offers loans depending upon the project cost to SC/ST and or women entrepreneurs.