The Stand Up India Scheme is a government initiative that aims to promote entrepreneurship among women and marginalized communities. Here are some key features of the scheme:
The Stand Up India Scheme provides an excellent opportunity for SC/ST and women entrepreneurs to access financial support and start their own business ventures. It is important to reach out to the participating banks to understand the detailed terms and conditions, documentation requirements, and the application process for availing the loan under this scheme.
Composite Loan: The Stand Up India Scheme provides a composite loan, which includes both a term loan and a working capital loan. The total loan amount offered can be up to 85% of the project cost.
Project Cost: The loan amount is calculated based on the project cost, which includes various expenses such as capital expenditure, working capital requirements, machinery purchase, and other necessary expenses for setting up the enterprise.
Borrower's Contribution and Conjunction Support: As per the scheme guidelines, the borrower's contribution, along with any additional support received from other schemes, should not exceed 15% of the project cost. This means that a minimum of 15% of the project cost needs to be financed by the borrower themselves, either through their own contribution or support from other sources.
Standup Mitra: The mention of "Standup Mitra" is unclear, as it is not a commonly known term in the context of the Stand Up India Scheme. It is advisable to refer to the official documents or guidelines of the scheme for detailed information on any specific terms or requirements.
It is crucial to thoroughly review the official guidelines and reach out to the participating banks or financial institutions for accurate and up-to-date information regarding loan amounts, terms, repayment options, and application procedures under the Stand Up India Scheme.
Interest Rate: The interest rate for Stand Up India loans is determined by the bank and comprises the base rate, marginal cost of funds-based lending rate (MCLR), tenor premium, and an additional 3% rate.
Loan Amount: Eligible borrowers can avail of a loan amount starting from Rs. 10 lakhs to a maximum of Rs. 1 crore.
Repayment Tenure: The repayment tenure for the loan includes a moratorium period of 18 months, and the full repayment period is up to seven years.
Borrower's Contribution and Convergence Support: The loan specification is expected to cover up to 85% of the project cost. Still, the borrower's contribution and any convergence support received from other schemes should not exceed 15% of the project cost.
Collateral/Security: To avail of a Stand Up India loan, banks require a guarantee from the Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL), as defined by the Banks.
Working Capital Limit: Working capital limits exceeding Rs. 10 lakhs can be sanctioned in the form of a Cash Credit limit.
Eligibility: The scheme is open to all eligible entrepreneurs, including those who wish to undertake activities allied to agriculture.
The Stand Up India Scheme provides an excellent platform for entrepreneurs belonging to SC/ST and women communities to embark on their entrepreneurship journey. However, different banks may have slightly different terms and conditions, so it is crucial to review the official guidelines and reach out to participating banks or financial institutions for accurate and up-to-date information on the loan process, documentation requirements, terms, and conditions.
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