Stand Up India Scheme Features: Dedicated to aspiring scheduled caste, scheduled tribe and women entrepreneurs in the country, the government back in 2016 had launched the Stand-up India scheme with an aim to economically empower entrepreneurship and job creation at the grassroots level. Since then, the scheme has sanctioned loan applications of 1.86 lakh SC/ST and/or women entrepreneurs amounting to Rs 41,972 crore as of Monday, as per data available on the scheme’s website. The total applications received so far were over 2 lakh involving Rs 48,622 crore.
Importantly, the share of women entrepreneurs under the scheme was 80 per cent with 1.44 lakh loans amounting to Rs 33,152 crore sanctioned out of 1.80 lakh loans amounting to Rs 40,710 crore sanctioned till March 21, 2023, as per the data shared by the finance ministry in April this year. On the other hand, 26,889 loans involving Rs 5,625 crore were sanctioned to SC entrepreneurs and 8,960 loans involving Rs 1,932 crore were sanctioned to ST entrepreneurs. Here’s everything you need to know about the scheme:
How much credit can be availed under the scheme?
The scheme essentially facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up a greenfield (first-time venture) enterprise. This enterprise could be into manufacturing, services, agri-allied activities or the trading sector.
Who is eligible for the scheme?
SC/ST and/or women entrepreneurs above 18 years of age venturing for the first time into manufacturing, services or the trading sector and activities allied to agriculture. In case the venture is a non-individual enterprise (partnership), 51 per cent of the shareholding and controlling stake should be with either SC/ST and/or women entrepreneur. Moreover, the entrepreneur should not be in default to any bank or financial institution.
Also read: MSME Guide: How to start and run your business in India
What does the scheme offer apart from facilitating credit?
The scheme also offers guidance to set up a business beginning with filing loan application, connecting to various agencies with specific expertise such as skilling centres, mentorship support, entrepreneurship development programme centres and district industries centre.
How can I apply online for the loan under the scheme?
Log in to the Standupmitra.in portal and enter details in the scheme’s form such as business address, type of applicant (woman or SC or SCT borrower), nature of business, loan amount, business activity, background information of the owner such as name, qualification, address, experience in the line of activity. In case, there is any associate concerns of a joint venture partner or director of the proposed unit, the owner will have to share their details. The owner also needs to fill in sales, profit and net worth estimates of the business for the first, second and third year.
What documents are required?
While documents required depend on the location of the business and lender, you would need to submit ID and address proof, business address proof, memorandum and articles of association or partnership deep, whichever applicable, assets and liabilities statement of promoters and guarantors along with latest income tax returns, rent agreement if business premises is on rent, MSME registration if applicable, projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan, photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities, documents to establish the applicant belongs to SC/ST Category, certificate of incorporation from ROC.
In case the loan exposure is above Rs 25 lakh, you will have to share the profile of the unit including names of all promoters, other directors in the company, the activity being undertaken addresses of all offices and plants, shareholding pattern etc. Moreover, the last three years balance sheets of the associate or group companies, project report, details of labour, staff to be hired, etc have to be provided.
How much margin money will have to be contributed by the enterprise owner?
The Scheme envisages up to 15 per cent of margin money by the owner which can be provided in convergence with eligible central or state schemes such as Credit Guarantee Scheme for Stand-up India. In any case, the borrower will have to contribute a minimum of 10 per cent of the project cost.
What will be the interest rate levied and repayment period?
The interest rate would be lower than the bank’s base rate (Marginal Cost of Funds based Lending Rate) plus 3 per cent plus tenor premium. The loan can be repaid in seven years with a maximum moratorium period of 18 months.