Stand-Up India is a scheme to help the SC/ST and women entrepreneurs of India by providing them with a loan to set up new enterprises outside the farming sector. This indirectly promotes the Startup India Scheme of the Government.
The scheme aims to provide bank loans to at least one SC/ST and one woman per bank branch of Rs. 10 lakh to Rs. 1 Crore. The loan is a composite loan that comprises of term loan and working capital.
The sole purpose is to enable SC/ST and women entrepreneurs in India to set up new enterprises in the field of manufacturing, trading, and services sector.
A composite type loan will be provided as already stated above between 10 Lakhs to 1 Crore Rs.
Either you can provide some primary security, or it can be secured by collateral security or guarantee or even by CGSFIL (Credit Guarantee Fund Scheme for Stand-up India Loans) as decided by the bank.
A composite loan of only 75% of the project cost inclusive of the term loan and working capital. Moreover, the loan of 75% of the total project cost won’t be covered if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
The rate of interest would be the lowest that is been there in the bank for the category. Which is expected not to increase (base rate(MCLR) + 3% + tenor premium)
The loan is expected to be repaid in a maximum of 7 years of time with a maximum delay period of 18 months.
Withdrawal of working capital of up to 10 lakh Rs, that can be sanctioned using an overdraft. Rupay cards are also being issued for the convenience of borrowers.
For capital of more than 10 lakh Rs, that should be sanctioned by way of cash credit limit only.
The scheme envisages 25 % margin money which can be provided in convergence with eligible Central/state schemes. These schemes can be used to avail subsidies and for meeting margin money requirements. In all cases, a minimum contribution of 10% of the project cost is expected to be brought by the borrower as their own contribution.
The scheme would be operated by all the branches of scheduled commercial banks of India. The scheme will be benefitting at least 2.5 lakh borrowers in the next 36 months from the launch of the scheme. In all we expect this scheme to go hand-in-hand with the Start-up India scheme and then eventually lead to nation-building.