Launch Your Startup with the Stand Up India Scheme – Apply Online

What is Stand Up India Scheme

Among the many initiatives launched by the Government of India in the recent past has been the unique Stand Up India Scheme aimed at boosting the entrepreneurial capabilities of the not so privileged which covers the SC/St and women. This flagship endeavor of the Government launched in April 2016 is anchored by the DFS (Department of Financial Services) under the overall supervision of the Ministry of Finance. It is typically designed to facilitate Stand Up India Loan to the eligible entrepreneurs who qualify for assistance from the banks and NBFCs. A detailed study to learn the Stand Up India scheme details and the features of the loan shall be able to draw a clear picture of the scheme in general and also its relation with the Startup India Scheme launched a few months earlier with more generalized goals to help grow entrepreneurship and greenfield projects in India.

Features of Stand Up India:

It is interesting to note that both Stand-Up India and Startup India are similar to the extent of being enablers and beneficiaries of the other landmark schemes of the Government of India like Make in India, Bharatmala, and Sagarmala to name a few. However, Stand Up India is dedicated to the uplift of the Scheduled Caste and Tribe (SC/ST) community as well as Women entrepreneurs who have faced bias and challenges in their business ventures. To remove this deficiency in the ecosystem within the country, the scheme was launched with a very broad spectrum. The salient features of the Stand Up India Scheme are:

Objective:

It is aimed to remove and acknowledge the challenges faced by members of the SC / ST community and women entrepreneurs by providing business loan for women and SC/ST entrepreneurs to build greenfield projects comprising services, manufacturing, or trade.

Amount of Loan

The start up loan scheme is designed to be in the range of Rs.10 lakhs to Rs.1 crore at the maximum. However, the cap of finance of 75% shall not apply if there is a contribution by the borrower greater than 25%.

Holding Pattern:

In the case of group enterprise, a minimum of 51% stake and shareholding must belong to a woman entrepreneur or a member of the SC / ST community.

Nature of Stand Up India Loan Scheme:

It is in the form of a composite loan which includes term loan and a working capital loan.

Loan Delivery:

The start up business loans will be extended by all scheduled commercial banks and some NBFCs with loans designed in the pattern of the scheme via SIDBI’s Stand Up India portal or the Lead District Manager.

Security:

At the discretion of the bank the primary security will be additionally reinforced by the provision of collateral or Stand Up India Scheme subsidy in the form of a guarantee from the Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL).

Repayment:

The repayment terms of the new business loan under Stand Up India are very liberal, extending up to a maximum of 7 years inclusive of a moratorium of 18 months.

Working Capital Finance:

Up to Rs.10 lakhs can be drawn in the form of Overdraft. But if the need is higher, then the facility has to be converted into a Cash Credit facility with an appropriate limit.

Margin Money:

It is expected that the State / Central Government will provide Stand Up India Scheme Subsidy to the tune of 25%, it is also expected that the promoter of the project will cough up 10% of the overall cost.

Indicative Figures:

Some of the important statistics of Stand Up India as of 30 June 2019.

Also Read: What is SIDBI and its function?

Importance of Stand Up Scheme

• Since its inception, the Stand Up India initiative has sanctioned over Rs. 40,700 crore in bank loans to more than 1.8 lakh entrepreneurs. 
• The scheme focuses on financial inclusion by extending government business loan options to aspiring SC, ST, and women entrepreneurs, addressing the challenges they face in securing capital. 
• Providing loans for women to start businesses empowers female entrepreneurs and promotes gender equality in the business sector. 
• The availability of this start up India scheme ensures that eligible businesses can access funding seamlessly without excessive paperwork. 
• The initiative has significantly contributed to employment generation, fostering economic growth and increasing financial independence for underrepresented business communities.

Stand Up India Business Loan Eligibility:

The parameters defined to check if the applicant is eligible for availing a Stand Up India Loan contain the following:

• The individual entrepreneur must be at least 18 years of age.
• The applicant must mandatorily be a woman or a member of the SC/CT community.
• Venture under this scheme must be a greenfield in nature, that too in the type of business specified.
• The applicant must not be a defaulter to any financial institution or a bank in the past.
• The further parameters that shall impact the availability of online business loans are:
  • The location of the business and the residence of the borrower
  • Assistance with the preparation of the project plan.
  • The quantum of the self-investment in the business venture by the promoter borrower.
  • If the borrower needs any assistance to raise the margin money.
  • Prior experience of the borrower in handling such a business.

Also Read: Udyogini Scheme for Women Entrepreneurs

Documents Required for Stand Up India Loan:

The documentation process for availing of the loan under the scheme is a bit elaborate, and the requirements are as under:

• Identity Proof: Any valid photo identity proof acceptable to the bank.
• Address Proof: Any valid address proof document of the individual and the business firm.
• Memorandum of Articles of the Association of the Company.
• Partnership deed in the case of a partnership firm.
• Copies of the lease deeds.
• Copy of the Rent Agreement.
• The last three balance sheets of the company.
• Assets and Liability statements of both the borrower and the guarantor.

Stand Up India Loan Interest Rate:

The rate prescribed under the scheme shall be the lowest for the category which is again subject to a cap of MCLR + 3% + Tenor Premium.

Benefits of the Stand Up India Scheme

• The Stand Up India scheme facilitates financial assistance by providing both term loan and working capital, ensuring adequate funds for new businesses. 
• The loan amount ranges between Rs. 10 lakh to Rs. 1 crore, helping small businesses scale their operations.
• Borrowers receive a Rupay debit card to access funds conveniently and manage their loan transactions efficiently. 
• The scheme offers a digital loan application process through a dedicated web portal managed by SIDBI, allowing entrepreneurs to apply with ease. 
• It extends beyond financial aid by offering hand-holding support through various agencies that assist in loan activities such as skill development, business mentoring, project report preparation, and guidance on subsidy schemes.
• Entrepreneurs can visit the nearest branch of any bank to understand eligibility criteria and apply through bank representatives.

Stand Up  India Registration:

The basic requirement for Stand Up India Loan Application is through the process of registration, which can be accomplished in a few steps.

• The first step is to visit the official portal of Stand Up India at Udyami Mitra’
• Enter the full details of the business location.
• Select the category between SC, ST, Woman, and whether the stake held is 51% or higher.
• Select the nature of the proposed business; the loan amount desired description of the business, the details of the premises, etc.
• Populate the fields with past business experience, including tenure.
• Select the need for hand-holding is required.
• Enter all the personal details sought, which include the name of the enterprise and the constitution.
• The last step is to select the register button to complete the process.

For Loan Exposure Above Rs. 25 Lakhs

• Applicants must submit a business loan application that includes a profit of the unit, covering promoter details, directors in the company, nature of business, shareholding pattern, and office locations. 
• The last three years’ balance sheets of the company and other bank statements (if applicable) must be provided. 
• A project report is necessary for funding, including details about machinery procurement, supplier information, costs, and financial projections such as production capacity, sales estimates, and profit margins. 
•  Businesses must outline their loan activities, including hiring plans, raw material sources, major buyers, and competitors’ analysis. 
• If applying for a company loan, additional details on executive profiles, industry tie-ups, and financial assumptions should be presented. 

Once you have completed registration, you are eligible to initiate the Stand Up India Loan Application process with the respective financial institution for the officials to contact you for completing the Stand Up India Loan Process and requisite formalities.

The basic aim of Stand Up India is to work for the empowerment of the not-so-privileged component of the society who are victims of caste and gender bias. Accordingly, the schemes envisage the promotion of economic development of these sections and help in the generation of employment. The digital platform is designed in such a way that the scheme benefits 2.5 lakh borrowers in the targeted SC / ST and women category through the delivery of loans by 1.25 lakh bank branches pan India. In addition to the facilitation of loans to the target audience, it also additionally provides hand-holding, guidance, mentoring, and skill development for budding entrepreneurs.

Stand Up India Loan Application:

The process of registration also empowers you to submit the Stand-Up India loan application online but also allows the benefit to checking government business loan status.

Lendingkart, being an NBFC has a similar loans for women’s to start business and the process is completely online. The difference lies in the fact that we grant business loans for women without any collateral at competitive rates of interest and are integral to the aim of women’s empowerment.

Conclusion

The Stand Up India scheme is a game-changer for aspiring entrepreneurs, providing seamless access to startup funding and ensuring financial inclusion through structured credit support. The scheme simplifies the business loan eligibility process, allowing businesses to secure the required funds conveniently through digital loans platforms. 

Frequently Asked Questions