Stand up India Scheme

Standup India scheme offers financial support to women entrepreneurs and people who come under the category of SC and ST of the society.  

It was introduced by the Indian government to provide credit services majorly to the people of SC and ST categories.  

The main purpose of the Stand-up India scheme is to help lenders in providing loan amounts between Rs. 10 lakhs to Rs. 1 crore to one Scheduled Cates (SC), one Scheduled Tribes (ST), and one-woman entrepreneur in each bank branch of all commercial banks for setting up greenfield projects.  

The portal of Stand-up India provides the digital platform based on 3 pillars among entrepreneurs from the category of SC, ST, and Women through: 

1. Providing information on financing
2. Handholding support
3. Credit guarantee

Key highlights 

Features of Stand-up India scheme 

• Nature of loan - The loan offered under this scheme is a composite loan that involves term loans and working capital loans.

• Purpose of loan - For setting up a new business in trading, services, and manufacturing sectors by SC, ST, and Women entrepreneurs.

• Size of the loan - 75% of the composite loan of the project cost including working capital and term loan.

• Rate of interest - The interest rate of the Stand-up India scheme would be the lowest that is provided by the banks for the particular category.

• Security - The loan might be secured by collateral or CGFSIL guarantee (Credit Guarantee Fund Scheme for Stand-up India Loans), as needed by the banks.

• Repayment of the loan - The flexible repayment tenure for this scheme is up to 7 years with a moratorium period of 18 months.

• Working capital – The limit of working capital is to be sanctioned by cash credit limit, although working capital up to Rs. 10 lakhs can be sanctioned by overdraft facility.

Parameters that might impact the availability of this scheme 

• The promoter’s category not falling under SC/ST or women entrepreneurs
• Lack of experience of the individual in handling such business
• Insufficient margin money to boost business
• Residence of the borrower and area of the business
• Project plan which is not drafted up to the mark.
• The amount of self-investment by the borrower in the business venture.

Stand-up India Scheme Details 

List of Bank’s offering Stand-up India 

Eligibility criteria for Stand-up India scheme 

• The minimum age for SC, ST, or Women entrepreneurs is 18 years or above.
• The borrower must be in the category of SC, ST, or women entrepreneur.
• The loan can be availed by only greenfield projects.
• The borrower should not be a defaulter to any banks or financial bodies in the past.

Entrepreneurial support for SC, ST community, and women (2021 – 2022) 

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Documents required for Stand-up India loan application 

1.Duly filled out the application form with passport-sized photographs 

2.Copy of PAN Card 

3. For address proof  

• Passport
• PAN Card
• Voter ID Card
• Aadhar Card
• Electricity bill
• Utility bill

4. For identity proof 

• Aadhar card
• Voter ID Card
• Passport
• PAN Card
• Driving license

5. For Income proof 

• Income Tax Return (ITR) with computation of income (if filed) for the last 3 years form – 16.
• Previous 1-year bank statement of salary account.
• Appointment letter and previous 3 months' salary slips.
• Balance sheet
• Profit and loss account
• Tax audit report
• Annexure
• Updated 6 months statements of saving accounts

6. Other mandatory documents 

• Loan scheduled and sanction letter
• Copy of GST return for the previous year

Steps to apply for Stand-up India Loan Scheme 

Step-1: - To avail stand-up India loan scheme, visit the official website. 

Step-2: - Enter the required details of the business location. 

Step-3: - Choose the category between woman, ST, or ST. 

Step-3: - Select the nature of the scheduled business. 

Step-4: - Thereafter, select the loan amount of the business and information of the premises. 

Step-5: - You will be required to mention your past business experience along with tenure. 

Step-6: - Enter all the personal and business details including the name of the enterprise and the constitution. 

Step-7: - At last, click on the register button to completer the process of the Stand-up India loan scheme. 

Also read: - Startup Business loan for Women entrepreneurs