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Do you know what the Stand Up India scheme is? Stand Up India Scheme is to promote entrepreneurship among women and SC & ST communities. Stand Up India Scheme was launched by the Government of India. The scheme is embedded by the Department of Financial Services (DFS), Ministry of Finance, Government of India.

Stand Up India Scheme’s launch date is 5 April 2016. The aim of this scheme is to clear the way for bank loans of Rs. 10 lakh to Rs. 1 crore. With this scheme women, SC/ ST communities can borrow loans easily from banks with low-interest facilities. Stand Up India Scheme also promotes entrepreneurship among women.

Stand Up India Scheme Eligibility:

  • Stand Up India Scheme age limit criteria is 18 years
  • SC/ ST OT women entrepreneurs can apply for the loan
  • This loan is available only for a green field project
  • Beneficiaries of this scheme are obtainable in the trading or manufacturing or service sector
  • The borrower name should not be in the default of the bank or financial institution
  • In the case of a person from non-individual enterprises person should have to move at least 51% of the shareholding and controlling

Stand Up India Scheme Apply Online:

  1. For the Stand Up India Scheme application form visit the official portal
  2. Click on the Register button and respond to the set of queries popped up on the portal
  3. Based on your reply over the queries, you will be categorized between Trainee Borrower and Ready Borrower
  4. Then they will give the feedback related to the eligibility of the applicant for loan
  5. Then applicant can register and login to the official portal of the Stand Up India Loan
  6. After log-in successfully, perform the actions as per displayed on the portal
  7. Such as-
    • Location of the borrower
    • Category – SC/ ST/ Woman
    • Nature of business planned
    • Availability of place to operate the business.
    • Assistance needed for preparing a project plan
    • Requirement of skills/training (technical and financial).
    • Details of present bank account.
    • Amount of own investment into the project
    • Whether help is needed to raise margin money
    • Any previous experience in businessBased on the response

Trainee Borrower- If an individual requires any support to raise margin money, then the individual is categorized as a trainee borrower. Then the portal connects the borrower to LDM (Lead District Manager) and the relevant office of SIDBI/ NABARD. This process can be done by the individual digitally.

The concerned officers will then arrange for support as given below-

  • Financial training through Financial Literacy Centres
  • Skilling through Vocational Training Centres and others
  • Electronic data processing at MSME DIs, District Industries Centres, and Rural Self Employment Training Institutes
  • Work sheds through District Industries Centres
  • Margin money through State Khadi & Village Industries Board, Women’s Development Corporation, State SC Finance Corporation, and others
  • Mentoring support from renowned entrepreneurs through Women Entrepreneur Associations, Trade Bodies, and other NGOs
  • Utility connections through utility provider offices

Ready Borrower- If an individual does not require support to raise margin money then the individual is categorized as a ready borrower. In such cases, generated application numbers and information about borrowers are sent with the bank concerns. The offices of SIDBI and NABARD shall be designated Stand-Up Connect Centres (SUCC). The loan application will now be generated and tracked through the portal.

Documents Required For Stand- Up India Loan Application:

  • Proof of Identity : Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of proprietor, partner of director ( if a company)
  • Proof of residence: Recent telephone bills, electricity bill, property tax receipt /Passport / voter’s ID Card of Proprietor, partner of Director (if a company)
  • Proof of business Address
  • Applicant should not be defaulter in any Bank/F.I.
  • Memorandum and articles of association of the Company / Partnership Deed of partners etc.
  • Assets and liabilities statement of promoters and guarantors along with latest income tax returns
  • Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable
  • SSI / MSME registration if applicable
  • Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan
  • Photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities
  • Documents to establish whether the applicant belongs to SC/ST Category
  • Certificate of incorporation from ROC to establish whether majority stake holding in the company is in the hands of a person who belongs to SC/ST/Woman category

For Cases With Exposure above ₹ 25 Lakhs-

  • Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken addresses of all offices and plants, shareholding pattern etc.
  • Last three years balance sheets of the Associate / Group Companies (if any)
  • Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity of utilization assumed, production, sales, projected profit and loss and balance sheets for the tenor of the loan, the details of labour, staff to be hired, basis of assumption of such financial details etc.
  • Manufacturing process if applicable, major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major-competitors and the company’s strength and weaknesses as compared to their competitors etc.
  • The checklist is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per requirement

Benefits Of Stand Up India Scheme:

  • The nature of the loan is a Composite loan between 10 lakh and up to 1 crore
  • The purpose of this loan is to fund the setting up of new trading and service sectors, manufacturing by SC/ ST/ Women entrepreneur
  • Loan Amount: Loan can cover 75% of your project’s cost
  • The interest rate of the loan is the lowest.
  • You can secure a loan with a collateral guarantee rather than primary security
  • The loan is repayable in 7 years with a maximum suspension period of 18 months
  • Stand Up India Scheme Loan interest rate is MCLR + 3% + tenor premium
  • The Scheme envisages up to 15% margin money which can be provided in convergence with eligible Central / State schemes

Here, we covered the piece of information about the Stand Up India Scheme. Check out the Stand Up India Scheme details pdf for more related information about the scheme. For the Stand Up India Scheme online application, registration process, and more information related to the Government Schemes, you can visit the official website.

You can also get added information about this scheme using Stand Up India Scheme contact number- 1800-180-1111.