Stand-Up India Scheme provides funding to women entrepreneurs and people who come under SC/ST category of the society. Stand-up India scheme was introduced by 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 women entrepreneur per bank branch in enabling them to set-up their own enterprise.
|Stand-up India Scheme – Interest Rate & Eligibility 2020|
|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. GST and service tax shall be levied extra on the mentioned charges.
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 enterprise serving the services, manufacturing and trading sectors. For non-individual enterprises, at least 51% of controlling and shareholding stake could be held by either a women borrower or an individual belonging to SC/ST.