Stand-Up India Scheme: Objectives, Features & Application Process

Source: thehindu.com

Many welfare schemes and initiatives have come up recently for social and economic upliftment among people from scheduled and scheduled tribes in India. The Stand-Up India Scheme is one such which aims to promote entrepreneurship among women or people from SC or ST communities.

The Department of Financial Services (DFS), Ministry of Finance, Government of India, administers this scheme. Here, we will provide all information about Stand-Up India Scheme below.

The Stand-Up India Scheme’s objective is to promote entrepreneurship among women or scheduled caste and scheduled tribes by facilitating bank loans. Minimum one ST or SC borrower and at least one woman can avail of loans ranging between ₹10 lakh to ₹1 crore from banks to set up a greenfield enterprise under this scheme.

This enterprise can be in services, manufacturing or the commercial sector. An SC/ST or woman entrepreneur must hold at least 51% of the shares in any non-individual enterprises to apply for this Stand-Up India Loan Scheme.

Mentioned below are the criteria to apply for this scheme.

• Women and/or SC/ST entrepreneurs more than 18 years old.
• The loans under this scheme are only for greenfield projects. Here, the word green field means the first-time business venture of an applicant in the services, manufacturing or commercial sector.
• An applicant, as prescribed above, must hold at least 51% of shares in any non-individual country.
• A borrower must possess a clean financial and credit history. He/she should not be a defaulter.

• Loan Nature: It constitutes a composite loan (including working capital and term loan) ranging between ₹10 to ₹1 crore.
• Purpose of Loan - To help SC/ST/Women entrepreneurs set up new businesses in the manufacturing or services sector.
• Size of Loan – Individuals can avail this Stand-Up India Loan Scheme to get a composite loan covering 75% of their project cost. The loan includes working capital and a term loan. This benefit will not apply if the contribution from borrowers and convergence support exceeds 25% of the project cost from any other schemes.
• Interest Rate: The interest rate would be the least applicable rate of a bank for that category (rating category). It must not exceed the sum of base rate (MCLR), 3%,  and tenor premium.
• Security: Besides primary security, this composite loan may get secured by the Credit Guarantee Scheme for Stand-Up India Loans or CGFSIL’s guarantee as ascertained by collateral security or the banks.
• Repayment: It is easy to repay this loan within 7 years. This scheme also offers 18 months as the maximum moratorium period.
• Working Capital: Applicants can draw up to ₹10 lakh as working capital by an Overdraft. For the borrower’s convenience, a Rupay debit card will get issued. Any working capital above ₹10 lakh will get sanctioned by Cash Credit limit.
• Margin Money: This scheme envisages up to 15% margin money. It is offered in convergence with eligible State or Central schemes. Such schemes can be drawn upon to meet the margin money requirements or avail subsidies. An applicant will have to bring in at least 10% of the project cost as their own contribution.

Offline Process

This scheme is available with all of the branches of Scheduled Commercial Banks. Applicants can access the same as follows -

• Step 1: Reach out directly at the nearest bank branch, where this scheme is available.
• Step 2: Fill an application form and submit this form to the required bank. Additionally, attach all necessary documents.

Online Process

Here is a step-wise guide to apply under this scheme online.

• Step 1: Go to this scheme’s official portal and download the application form.
• Step 2: Fill it in and submit it along with all necessary documents.

Following are the documents required for Stand-Up Scheme.

• Application form and passport-sized photographs.
• Passport, DL, Voter Id, PAN card, Aadhar Card.
• Business location proof, rent agreement and last 3 years' balance sheets.

Now that you know how to go about with your application, let’s see how to check the status of your application.

• First, log on to the official website of Stand-Up India.
• After that click on ‘track application status’ on the homepage.
• Now, a new page will open.
• After that, provide your login credentials
• Now click on the ‘application status’ tab.
• After that, provide the reference number
• Now, click on ‘track’.
• The status of the application will appear on the computer screen.

The Stand-Up India Scheme promotes an entrepreneurial mood in the country by facilitating loans to women or SC or ST. Keep in mind the benefits under this scheme and the application process mentioned here.