STAND UP INDIA SCHEME

The Stand-Up India Scheme is a government initiative launched by the Government of India to promote entrepreneurship and provide financial support to women and individuals from Scheduled Castes (SC) and Scheduled Tribes (ST) for starting greenfield enterprises. The scheme aims to foster economic empowerment and generate employment opportunities. Here are the key details about the Stand-Up India Scheme:

Objective:

  • The primary objective of the Stand-Up India Scheme is to facilitate bank loans between Rs. 10 lakhs and Rs. 1 crore to SC/ST and women entrepreneurs for setting up new enterprises. The scheme aims to promote inclusiveness and entrepreneurship among underprivileged sections of society.

Eligibility:

To be eligible under the Stand-Up India Scheme, the following criteria must be met:

  • The enterprise should be owned and operated by an SC/ST or a woman entrepreneur.
  • The enterprise should be a greenfield project, which means it should not be a venture that involves the acquisition of an existing business.
  • The loan should be for a sector or activity recognized under the scheme guidelines.

Loan Features:

Stand-Up India Scheme provides the following features:

  • Loan Amount: The loan amount under the scheme ranges from Rs. 10 lakhs to Rs. 1 crore, with no collateral required for loans up to Rs. 10 lakhs.
  • Interest Rate: The interest rate is determined by the bank in accordance with their existing lending norms.
  • Loan Tenure: The loan repayment period can extend up to 7 years, including a moratorium period of up to 18 months.
  • Composite Loan: The loan provided under Stand-Up India Scheme is a composite loan, which includes both working capital and term loan components.
  • Sector Coverage: The scheme covers various sectors, including manufacturing, services, and trading activities, as long as the enterprise falls within the specified criteria.
  • Application Process: Entrepreneurs can apply for the Stand-Up India Scheme through participating banks. The scheme is implemented by various scheduled commercial banks, including public sector banks, regional rural banks, and private sector banks.
  • Support and Handholding: Banks are encouraged to provide support and handholding to the SC/ST and women entrepreneurs throughout the loan application process, including training, skill development, and mentoring.

Drop your message