Stand Up India Scheme | Stand Up India Loan
Greeting readers! Do you think you have great entrepreneur skills? Does your mind keep on popping new business ideas? Does this dream of setting up your own business pause at the matter of funds? No worries. If you are a woman or belong to underprivileged sections of society (SC/ST) and if not, you would definitely know a woman in your family or friends who belong to these groups. Some sections of our society have always been disadvantaged from other advantaged sections. The empowerment of these sections has been on the priority list of the government for developing the nation. Since independence, various policies have been designed and implemented to uplift these groups. Recently, prime minister Narendra Modi has launched the “STAND UP INDIA SCHEME” for these weaker sections. In this article, we are also going to briefly discuss stand up India loan in this article.
Go ahead and read because everybody can benefit from the ideas discussed further.
What is Stand Up India Scheme?
STANDUP INDIA as the name itself suggests that the scheme enables people of these underprivileged sections to stand up on their own feet and become economically liberated. The government of India keeps introducing a variety of schemes for its citizens to start up a new business. The Stand up India scheme is one of those schemes. It focuses on empowering weaker sections (STs, SC’s, women).
The scheme falls under the department of financial Services (DFS), Ministry of finance, and the government of India. Stand up India scheme was launched by PM Narendra Modi on 5 April 2016. The goal is to provide loans to these sections between 10 lakhs to 1 crore, according to their needs 1.25 banks are expected to lend money to eligible minorities every year.
Initially, under the scheme, the borrower should have been only an individual ST, SC, or woman, and that too only for greenfield enterprises (wherein new infrastructure will be built on unused land, no demolition or remodeling of an existing structure will be involved). Recently, it has been opened for non-individual enterprises with a minimum of 51% of shareholding by either an ST, SC, or woman.
Eligibility Criteria
Here are the valid points to apply for the Stand up India scheme.
- This scheme applicable for ST, SC, or women.
- The borrower should be above 18 years of age.
- Loans are available for greenfield projects. In this context, greenfield implies the first-time venture of the beneficiary in the trading, services, or manufacturing facture.
- The Borrower should not be in any defaulting bank/financial institution.
- A non-individual enterprise with a minimum of 51% of shareholding by either an ST, SC, or woman.
These are the eligibility criteria for stand up scheme and in the remaining article, we will be briefing about the stand up India loan scheme and more.
Key Features
Before you think of availing of this loan, you should know about the following key features:
- Each bank branch should be facilitated at least two entrepreneurial projects one for ST, SC group, and one for women.
- This scheme is led by the Small Industries Development Bank of India (SIDBI) with the involvement of the Dalit Indian Chamber of Commerce and Industry (DICCI). Along with DICCI, there will also be involvement of other sector-specific institutions.
- To facilitate the withdrawal of credit, a RuPay credit card would be provided to the borrower.
- To ensure that the loan money is not used for any personal use, the Credit history of the borrower would be maintained by the bank.
- To assist people a web portal has been created for online registration and services.
- Officials will be providing support to borrowers during the pre-loan and operational phases of the scheme.
- One of its goals is to bring forward minority groups in non-agriculture sectors.
Now, let us know about the nature of loan in the stand up India loan scheme.
Nature of Loan
The composite loan is an inclusive term loan (a monetary loan that is to be repaid through regular payments over a given period of time) and a working capital loan (that is taken to finance a company’s everyday operations). Following are the important key points in the stand up India loan scheme.
LOAN AMOUNT
Loan Amount of 75% of the project coast is covered by this scheme.
RATE OF INTREST
In the scheme, the bank assures the lowest applicable interest rate of the bank for that category. It should not exceed (base rate (MCLR) + 3% + tenor premium)
SECURITY
The loan can be secured with collateral or guarantee of the credit guarantee funds scheme for stand-up India loans (CGFSIL) as per the bank’s discretion.
PERIOD OF REPAYMENT
The loan can be repaid in 7 seven years. This scheme also offers a moratorium period of up to one and a half years.
MODES OF DISBURSEMENT
For up to Rupee’s 10 lakhs loan amount, the sum will be sanctioned by way of overdraft. For loan amounts above rupees 10 lakh, the sub will be sanctioned in the form of the cash credit limit. A RuPay debit card will be issued to access the funds easily. These are the key points related to stand up India loan.
Steps to Apply for Stand up India Scheme
The value of an idea lies in using it. So, friend’s stand up India scheme is the platform that gives wings to your dreams. It’s not just about ideas. It’s about making them happen.
Read further to know about how to avail it:
Step 1: Visit www.standupmitra.in
Step 2: Enter your name, email, contact and click ‘register’.
Step 3: Respond to the questions as asked on the website.
Step 4: On the basis of your response, you will be categorized as a trainee borrower (who needs support to raise margin money) or a ready borrower (who doesn’t need support).
Step 5: They will give you feedback weather you are eligible or not.
Step 6: Once successfully registered, a dashboard will appear to the applicant to proceed further.
So all you budding entrepreneurs stay positive and work towards your goals.
Towards the end
Hopefully, you all found this article is useful in taking one step towards your dream. We have covered all the necessary points in our article on “Stand up India Scheme – Stand up India loan” and drop your views and experiences in the comment section.
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