Terms of the Loan under Stand-Up India scheme

The terms of the loan under Stand Up India scheme is described below:

1. Nature of the Loan: It is a type of composite loan between Rs. 10 Lakh and up to Rs. 1 crore.
2. Purpose of Loan: To help SC/ST/Women entrepreneur to set a new enterprise in manufacturing, trading or services sector.
3. Size of Loan: Composite loan of 75% of the project cost inclusive of term loan and working capital. This would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
4. Interest Rate: It would be the lowest applicable rate of interest of the bank for that category not to exceed (base rate (MCLR) + 3% + tenor premium).
5. Security: Apart from primary security, the loan can be secured by collateral security or guarantee of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as defined by the banks.
6. Repayment: The loan is repayable in 7 years with a maximum extension period of 18 months.
7. Working Capital: For the withdrawal of working capital up to Rs. 10 Lakh, the same can be redeemed by the way of overdraft. Also, a Rupay Card is issued for the convenience of the borrower. In case of working capital limit above Rs. 10 Lakh, it is to be sanctioned by way of Cash Credit Limit.

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