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Stand Up India Scheme

stand up india scheme

Objectives of Stand Up India Scheme

The objective or goal of the Stand Up India Scheme is to make the process of bank loans easy between 10 lakhs and 1 crore for at least one woman borrower per bank branch and at least one Scheduled Tribe (ST) or Scheduled Caste (SC) borrower for establishing a greenfield enterprise. The enterprise might be in the sector of trading, services, or manufacturing. But when it comes to non-individual enterprises, at least 51% of the controlling stake and shareholding must be undertaken by either a woman or SC/ST entrepreneur. 

Features of Standupmitra

PM Mr.Narendra Modi launched the Stand Up India Scheme in Apr 2016. This scheme helps women, and all lower caste people to become entrepreneurs by applying for loans. Check out some of the important features of standupmitra scheme:

  • The scheme is covered under an initiative introduced by the DFS (Department of Financial Services), a Ministry of Finance to promote entrepreneurial projects.
  • It provides an amount ranging from Rs. 10 lakhs to Rs. 1 crore as a loan which even includes working capital for establishing a new enterprise.
  • This scheme provides a RuPay debit card for withdrawing the credit.
  • Also, it claims that each branch of the bank should facilitate an average of two entrepreneurial projects that is one for a woman entrepreneur and the other for SC/ST.
  • Below this scheme, there is a formation of a corpus of Rs. 5000 crore through NCGTC for the guarantee of credit.
  • It even has refinanced window through SIDBI (Small Industries Development Bank of India) with an initial amount of Rs. 10,000 crore.
  • The individuals who apply for the scheme will know about the online platforms as well as other resources of factoring services, web-entrepreneurship, e-marketing, and registration.
  • A web portal has been formed to help individuals with support services and online registration.
  • It supports the borrowers by offering extensive assistance for pre-loan training such as factoring, facilitating the loan, marketing, and so on.
  • It can also be an advantage for the ongoing schemes of other Departments.
  • The bank would maintain the credit history of the borrower so that the cash is not utilized for any personal use.
  • The scheme will be led by SIDBI (Small Industries Development Bank of India) with the participation of the DICCI (Dalit Indian Chamber of Commerce and Industry). Other sector-specific institutions will also be involved along with DICCI.
  • The key purpose of the scheme is to offer benefits to the institutional credit structure by getting to the minority sections of the people with the initiation of bank loans in the non-farm sector.
  • There would be an operational and pre-loan phase for the scheme and the officials would assist individuals throughout these phases.
  • To provide financial assistance, an initial amount of Rs. 10,000 crore will be given to the Small Industries Development Bank of India (SIDBI) under this scheme.
  • The scheme offers margin money of up to 25% for the composite loan to help the credit system reach out to the businessmen.
  • The designation of SUCC (Stand Up Connect Centres) will be rendered to NABARD (National Bank of Agriculture and Rural Development) and SIDBI.

Eligibility for Start-Up India Scheme

Have a look at the eligibility for Stand Up India Scheme which is as follows:

  • The applicant should have an age of more than 18 years.
  • The benefits of the scheme are only eligible to women entrepreneurs and SC/ST individuals
  • Non-individuals like existing businesses and organizations are also eligible for the scheme application.
  • Only greenfield projects can register for the Stand Up India loan scheme.
  • The borrower should not default at any financial or bank institution.
  • Above all, about 51% of the controlling stakes and shareholding of the enterprise should be carried out by either SC/ST and/or women entrepreneurs.

Steps to Apply Online for Startup India Loan

To apply for Startup India Loan online, you would need to follow the steps given below:

Step1: Go to the Stand Up India portal at www.standupmitra.in to read and understand the details of the scheme properly.

Step 2: Hit on the button ‘Register’ and then you would need to answer a set of questions asked.

Step 3: You would be categorized either as Ready Borrower or Trainee Borrower based on your response.

Step 4: You will get feedback regarding the eligibility of the loan applicant.

Step 5: As per the eligibility, you can then register on the portal and log in.

Step 6: Once you log in successfully, you can see a dashboard so that you can proceed with further actions.

FAQs about Standup India Scheme

1. What is the origin of the “Stand Up India” scheme?

The Stand Up India scheme is an initiative announced by the Indian Prime Minister on August 15, 2015, to present bank financing for greenfield organizations promoted by SC/ST/women entrepreneurs. The scheme would be carried out through a 1.25 lakh bank branch network of scheduled commercial banks all over the nation.

2. Who are the eligible clients and borrowers for the Stand Up India scheme loan?

Women entrepreneurs and/or SC/ST who are establishing new organizations can take the benefit of loans below the Stand-Up India scheme. Generally, the target clients eligible for this scheme are none other than the projects in the agri-allied activities, manufacturing, or the trading sector.

3. What is the security requisite below the Stand Up India scheme?

Besides the hypothecation or mortgage of the primary asset received out of the loan, the loan can also be secured by CGSSI (guarantee of Credit Guarantee Scheme for Stand-Up India Loans) or collateral security as determined by the banks.

4. What is the repayment duration below the Stand-Up India scheme?

Under the Stand-Up India scheme, the repayment tenure of the composite loan is decided as per the useful life of assets bought with a bank loan and nature of activity but not to go beyond 7 years with an optimum moratorium duration of 18 months.

5. What are the salient features of CGSSI (Credit Guarantee Scheme for Stand Up India)?

Details: One can access details from the website of NCGTC at www.ncgtc.in and then go to the link of Products & Services and choose Credit Guarantee Scheme for Stand Up India (CGSSI) – scheme notification.

Eligibility: The NCGTC (National Credit Guarantee Trustee Company) should cover assistance of up to 100 lakh and over 10 lakh that includes working capital extended by liable lending institutes to a single liable borrower after signing a contract with the Trust without third party guarantees or such sum of money and any collateral security as might be determined by the Trust from time to time. 

6. What is the difference between the SMILE Scheme and the Stand Up India Scheme?

Stand-Up India Scheme is introduced to be operated through 1.25 lakh branches of the bank in the nation whereas the SMILE Scheme is operated only via SIDBI to invest in projects that rise in 25 recognized sectors under the Make in India program for existing as well as new units. The loan size of the minimum term for new units is 25 lakh under the SMILE Scheme whereas it is up to 100 lakh and over 10 lakh especially for women/SC/ST entrepreneurs establishing greenfield projects. 

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