mail-box-lead-generation

written by | April 27, 2022

A Guide to Stand Up India Scheme

×

Table of Content


Stand Up India scheme was introduced by the Government to finance women entrepreneurs and the people belonging to the SC/ST Caste. The government's main aim behind this funding is to promote entrepreneurship among women and people from SC/ST caste. Every bank branch sanctions the bank loan of the amount of ₹10 lakhs to ₹1 crore to at least one Scheduled Caste person and one Scheduled Tribed person for setting up a greenfield enterprise.

Entrepreneurs can open an enterprise in any sector, including manufacturing, agricultural activities, services, or trading. If the enterprise belongs to a non-individual, either an SC/ST caste person or a woman entrepreneur must hold at least 51%. In this article, we will learn more about Stand Up India scheme eligibility, subsidy, and documents required for loans under this scheme.

Did you know?

In this scheme, E-Rickshaws are also provided to the poor, unemployed people.

Features of Stand Up India

The Stand Up India Scheme was launched on 5th April 2016 by the prime minister of India, Mr Narendra Modi. The scheme was introduced with the motto of encouraging SC/ST caste and women all over the country to enter into entrepreneurship by sanctioning them a loan to start their business.

Some of the features of the Stand Up India Scheme are -

  • The scheme was an initiative by the Ministry of Finance of India to encourage the entrepreneurship
  • The Stand Up India loan granted ranges from ₹10 lakhs to ₹1 crore. The working capital required for setting up the business is also included in this loan amount.
  • One bank branch can fund at least two entrepreneurship projects. One project must belong to the SC/ST caste person, and the other must belong to the women entrepreneur.
  • To withdraw the credit amount, the government provides Rupay Card to the entrepreneurs.
  • The bank keeps the entire history of the usage of the loan amount to ensure that the loan amount is used only for business purposes and not for any personal purposes.
  • Along with providing the loan, the government also supports by giving pre-loan training such as marketing, factoring, and facilitating the loan.
  • The Stand Up India portal is also created to assist people in online registration for the scheme and provide other support services.
  • The people who apply for Stand Up India Loan are made aware of the online platforms, web entrepreneurship, e-marketing, registration, and factoring.

Also Read: Government Loan Schemes for Small Businesses In India

Stand Up India Scheme Eligibility

The people who want to apply for the Stand Up India subsidy must know about the eligibility that they need to fulfil to avoid any inconvenience later on. The key points of stand up India scheme eligibility are as follows -

1. The person applying for the Stand Up India loan must be at least 18 years of age.

2. The willing entrepreneur must be an SC/ST tribe person or a woman.

3. The company must be a private company, partnership company, or limited liability partnership.

4. The turnover of the company must not exceed ₹25 crores.

5. The projects for which the loan is to be taken must be greenfield, which means the entrepreneur should be a new project in the service or manufacturing sector.

6. The company must deal with innovative and commercial consumer goods.

7. The applicant must not have been at default in any bank or NBFC.

8. The loan sanctioned by the bank must be guaranteed by Credit Guarantee Fund Scheme or secured with collateral security.

Documents Required for Stand up India Loan

  1. Application form filled with the correct details along with passport size photographs
  2. ID proof of the applicant - it can be Aadhar Card, Voter ID Card, driving license, or a PAN card.
  3. Address proof of the applicant - It can be Aadhar Card, Driving License, Passport, Voter ID card, electricity bill, property tax receipt, etc.
  4. The proof of business address.
  5. Partnership deed of the partners, in the case of partnership company.
  6. Copy of the rental agreement or a lease deed.
  7. A balance sheet of the business for the three preceding financial years.
  8. Statement of assets and liabilities of the guarantors.
  9. Any other document that the bank may ask

Stand Up India Loan Interest Rate

The interest rate applicable on the Stand Up India loan is - relevant Bank's MCLR (marginal cost lending rate) 3% tenor premium.

The loan must be repaid within seven years, and the moratorium period of 18 months.

At the time of the loan grant, you have to keep something as collateral security as a guarantee for the loan sanctioned.

Stand Up India Loan Registration

To register for the Stand Up India Loan Scheme, simple sign up at the Stand Up India portal or their official website and follow the required steps by answering a few questions. The Stand Up India Scheme is so simple and easy if you know the purpose of taking the loan and the amount of loan required. The steps to register for the stand-up loan subsidy are as follows -

1. Visit the official website of the Stand Up India loan.

2. The first step is to fill out the registration form, where you will be asked to enter your business details first, such as a business address, city, state, region, and PIN code.

3. Select whether the person applying for the Stand Up India loan is a woman or SC/ST caste person who holds at least 51% share in the company.

4. Now, the applicant must give further details of the business, such as the nature of the greenfield business, loan amount required for the company, description of the work to be carried out in that business, and the status of the business space.

5. The applicants must enable the option of first-time entrepreneurs.

6. Now, you must tick the desired handholding support as per your requirement.

7. The last step of the registration is filling in the personal details of the application, such as name, user name, e-mail id, and the type of constitution.

8. Now check all the filled details carefully and click on submit.

9. Now, you will receive an OTP on your registered mobile number and e-mail id. Enter this OTP in the required space.

 10. After entering the correct OTP and clicking on submit, you have successfully registered for the Stand Up India scheme, and the bank officials will contact you for further formalities.

Also Read: Top 5 Government Loan Schemes for Small Business in India

Stand Up India Loan Application

The person willing to apply for a Stand Up India subsidy must visit their nearest bank branch, and they must enquire whether the one-person quota for the loan is available or not. If yes, they must submit their duly filled application form with the required documents. The form can also be downloaded from the Stand Up India portal.

Till now, 121047 applications have been sanctioned by the government with a total Stand Up loan amount of ₹27295.18 crores. You can also track your Stand Up India loan application status from the portal. The steps to follow your application status is -

1. Visit the official website of the Stand Up India scheme.

2. On the homepage of the website, click on check application status

3. A new window will appear for login. Enter your login details

4. Now click on application status and enter your reference number

5. Now click on the 'Track' option, and you will be able to see your application status on the screen.

Conclusion

Our country is in the midst of a job crisis. There has been a huge increase in the rate of unemployment in India. Only the developed cities get encouragement for establishing new industries. So, the prime minister of India, Mr Narendra Modi, came up with the Stand Up India scheme to promote entrepreneurship among women and SC/ST caste people. The idea is to provide funds not only to the large establishments but also to the commoner. The interest rate on loans sanctioned is the barest minimum that the banks can offer. You can easily repay the long as it has a long repayment period and a long moratorium. The long repayment period reduces the stress on the borrowers. You need to keep basic security against the loan sanctioned. If you are an investor, a stand-up loan subsidy will be the best choice for you to apply for since it gives ample benefits to the common person.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is the meaning of a greenfield project?

Ans:

The Greenfield project is a new project where the new infrastructure starts on unused land.

Q: Can a general category person apply for a Stand Up India scheme?

Ans:

No, the Stand Up India scheme is only for women or SC/ST caste people.

Q: What is the Stand Up India scheme launch date?

Ans:

The launch date of the Stand Up India scheme is 5th April 2016.

Q: What is the eligible age limit to apply for the Stand Up India loan?

Ans:

The person applying for a Stand Up India loan must be 18 or older.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.