Stand-Up India scheme 

Stand-Up India scheme focuses on empowering the minorities, such as scheduled castes, scheduled tribes, and women. The scheme was 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 Scheme Details               

Features of the 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 a term loan and working capital loan of Rs. 10 lakh and up to Rs. 1 crore
• Collateral security or a guarantee from the Credit Guarantee Fund Scheme may secure the scheme.
• SC/ST and women entrepreneurs can use it.
• The repayment period is a maximum of up to 7 years with a maximum moratorium period of up to 18 months
• The Stand-up India Scheme does not offer any subsidy.
• This 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. Sanction the amount above Rs. 10 lakh in the form of the cash credit limit.

What are the Eligibility criteria for the 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?

1) Visit the Stand-Up India portal 

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

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

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

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

6) The final step of registration is regarding the applicant’s personal information.

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 the 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
• The last 3 years balance sheets of the association
• Assets and liabilities statement of the promoters and guarantors
• Any other document required by the bank

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