Stand-Up India was launched by Government of India on 5 April 2016 to support entrepreneurship among women and SC & ST communities.It is similar to but distinct from Startup India. Both are enabler and beneficiary of other key Government of India schemes, such as Make in India, Industrial corridor, Dedicated Freight Corridor, Sagarmala, Bharatmala, UDAN-RCS, Digital India, BharatNet and UMANG.

 

What is the Stand-Up India scheme?

The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.  SC/ST and/or woman entrepreneurs, above 18 years of age.

 

Who is eligible for Stand-Up India scheme?

The applicant must be aged above 18 years. Only greenfield projects can apply for the loan scheme. 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.

 

Features and benefits of the scheme

Nature: The Stand-Up India scheme is a composite loan that is inclusive of term loan and working capital loan.

Loan Amount: The scheme will cover up to 75% of the project cost.

Interest Rate: The scheme assures the lowest applicable interest rate of the bank for that category that is well within (base rate * MCLR + 3% + tenor premium).

Security: Besides the primary security, you can secure the loan with collateral or guarantee of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL). The lender takes a call on this.

Repayment Period: The loan can be repaid over seven years. Also, the scheme offers a moratorium period of up to 18 months.

Modes of Disbursement: For a loan amount of up to Rs.10 lakh, the sum will be sanctioned by way of overdraft. A RuPay debit card will be issued to access the funds conveniently. For a loan amount above Rs.10 lakh, the sum will be sanctioned in the form of the cash credit limit.