Stand-Up India Loan – How to get 10 Lakhs to 1 Crore Business Loan – #standupindia Loan Scheme

Stand-Up India scheme that focuses on empowering the minorities, such as scheduled castes, scheduled tribes, and women. The scheme is introduced by the Department of Financial Services (DFS), Ministry of Finance, Government of India.

 The scheme is to facilitate bank loans between Rs.10 lakh and Rs. 1 Crore. They aim to help at least one Scheduled Caste or Scheduled Tribe borrower and at least one woman borrower per bank branch. The 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. 

Stand-Up India is a scheme for financing SC/ST and/or Women Entrepreneurs.

Objective:

The objective of the Stand-Up India scheme is to facilitate bank loans between  10 lakh and  1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a Greenfield Project. This enterprise may be in manufacturing, services or the trading sector.

Eligibility:

  1. SC/ST and/or woman entrepreneurs, above 18 years of age.
  2. Loans under the scheme are available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
  3. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
  4. Borrower should not be in default to any bank/financial institution.

Nature of Loan:

Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.

Purpose of Loan:

For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

Size of Loan:

Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.

Interest Rate:

The rate of interest would be as per the extant interest rate circular of our Bank.

Security:

Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) wherever applicable.

Repayment:

The loan is repayable in 7 years with a maximum moratorium period of 18 months.

Working Capital:

Working capital limit generally to be sanctioned by way of Cash Credit limit. However working capital upto 10 lakh can be sanctioned by way of overdraft facility subject to the delegation of loaning power. Rupay debit card to be issued for convenience of the borrower.

Margin Money:

The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.

  Stand-Up India scheme Details               
Interest Rate Bank’s MCLR + 3% + tenor premium
Loan amount 

Working Capital Limit

Between Rs. 10 lakh and Rs. 1 crore 

Up to Rs. 10 lakh in form of Cash Credit limit

Repayment tenure Max. 7 years with moratorium period up to 18 months
Loans offered for Only Green Field Projects
Features of Stand-up India Scheme
  • Loans are only offered for Green Field Projects which means manufacturing or trading sectors for the first time
  • The nature of the Stand-Up India scheme is a composite loan that is inclusive of term loan and working capital loan of Rs. 10 lakh and up to Rs. 1 crore
  • Loans may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme
  • Loans can be used for SC/ST and women entrepreneurs
  • 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
  • The scheme will cover up to 75% of the project cost.
  • Assures the lowest applicable interest rate of the bank for base rate * MCLR + 3% + tenor premium
  • A loan amount of up to Rs.10 lakh, the sum will be sanctioned by way of overdraft. The amount above Rs.10 lakh, be sanctioned in the form of the cash credit limit.
What are the Eligibility criteria for Stand-up India Scheme?
  • Only SC/ST individuals and women entrepreneurs are eligible.
  • Age minimum 18 years.
  • Only green field projects can apply for the loan scheme.
  • Applicant should not have loan defaulted before to any bank or NBFC
  • Non-individuals, such as existing firms and businesses, can also apply for the scheme.
  • 51% of the shareholding and controlling stakes of the firm must be held by either SC/ST and/or women entrepreneurs.
How to apply for the Stand-up India Scheme?

Step 1: Visit the Stand-Up India portal 

Step 2: Click on the ‘Register’ button to fill up the details

Step 3: Enter the business location that includes business address, state, district, village, town, city, and pin code.

 Step 4: Based on your response, you will be categorized and holds a 51% stake or higher, and the same applies to SC/ST category.

 Step 5: Next select the nature of the business, desired loan amount, and select the drop-down of first-time entrepreneurs.

Step 6: Final step of registration is regarding the applicant’s personal information.

Step 8: By clicking on register applicant, the application for the Stand-up India scheme is submitted.

The respective financial institution and its officials will contact you for further formalities.

What are the documents required for Stand-up India Scheme?
  • Duly filled application form 
  • 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

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