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Stand Up India Scheme

Updated on November 18, 2024 , 41487 views

The Stand-Up India scheme was introduced by Prime Minister Narendra Modi in April 2016. It is a part of an initiative by the Department of Financial Services (DFS). The scheme focuses on helping women entrepreneurs from the SC/ST category to avail loans to fund their businesses. The scheme is available for women venturing into fields of Manufacturing, services and trading.

Businesses with at least 51% shares held by a woman entrepreneur from the SC/ST category will have the benefit of receiving funding from this scheme. The Stand Up India loan scheme will cover 75% of the total cost of the project. However, the woman entrepreneur will be expected to commit at least 10% of the project costs. This scheme will be reached out to women through government and private banks.

Stand Up India Interest Rates & Scheme Details

The Stand Up India scheme offers a great opportunity for women entrepreneurs. The interest rate is minimum and the repayment tenure is flexible.

Get more information below:

Particulars	Description
Interest Rate	Bank’s MCLR + 3% + tenor premium
Repayment tenure	Max. 7 years with moratorium period up to 18 months
Loan amount	Between Rs. 10 lakh and Rs. 100 lakh
Margin Money	15% can be provided in convergence
Working Capital Limit	Up to Rs. 10 lakh in form of Cash Credit Limit
Loans offered for	Only Green Field Projects (first-time venture)

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Features of Stand Up India Scheme

1. Loan Amount

Women entrepreneurs can avail loan an amount ranging from Rs. 10 lakhs to Rs. 1 crore. This could be employed as the working capital for the new enterprise.

2. Debit Card Issue

The applicant will be provided with a RuPay Debit Card for withdrawal of the deposited amount.

3. Refinance Window

The refinance window is available through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs. 10,000 crore.

4. Composite Loan

The margin money for the composite loan will be up to 25% to help the credit system reach women entrepreneurs.

5. Equipping Applicants

The applicants will be helped with understanding online platforms and other resources of e-marketing, web-entrepreneurship and other registration-related requirements.

6. Repayment Period

Applicants can pay back the loan within 7 years. Every year a certain amount is to be paid as per the approved applicant’s choice.

7. Security

The loan is secured by Collateral security or guarantee from the Credit Guarantee Fund Scheme for Stand Up Loans (CGFSIL).

8. Coverage

The loan can be employed to purchase vehicles for starting a transport/logistics business. It could also be availed to buy equipment for starting construction or equipment rental business. It could also be availed for vehicles for setting up taxi/car rental services. It could also be availed as a term loan for buying business machinery, furnishing office, etc.

The loan could be availed for medical equipment and office equipment.

Eligibility Criteria for Stand Up India Scheme

1. Gender

Only women can apply for this scheme.

2. Category

Women from the SC/ST category only can apply for the scheme.

3. Age

The woman must be aged 18 or above.

4. Firm Turnover

The turnover of the firm should not be more than Rs. 25 crores.

5. Greenfield Project

The loan amount will be provided to fund only greenfield projects. Greenfield projects mean the very first project that is being undertaken under the manufacturing or service sector.

6. Defaulter

The applicant should be a defaulter under any bank or organisation.

7. Consumer Goods

The company a woman entrepreneur is seeking a loan for should be dealing with commercial or innovative consumer goods. Approval from DIPP is also required for the same.

Documents Required for Stand Up India Scheme

Identity Proof (Passport, driving license, voters ID card, PAN Card, etc)
Residence Proof (Voter’s ID card, passport, latest electricity and telephone bills, property tax Receipt, etc)
Address proof for Business
Partnership Deed of partners
Photocopies of Lease deeds
Rent agreement
Passport size photographs
Assets and liabilities statement of promoters and guarantors

Benefits of Stand Up India Scheme

1. Rebate

The applicants will get back 80% rebate after filing the patent application form. This form has to be filled by startups. Startups will get more benefits under this scheme in comparison to other companies.

2. Credit Guarantee Fund

The scheme also brings a credit guarantee fund which will enable the entrepreneurs to enjoy income tax relaxation for the first three years.

3. Capital Gain Tax

Entrepreneurs will enjoy complete relaxation when it comes to Capital Gain tax.

Stand Up India Scheme PDF

The Stand Up India scheme brings a number of benefits for women. Lakhs of women have availed the loan and set up successful businesses. Know more about the various benefits and guidelines offered within this scheme here:

Stand Up India Scheme PDF

Conclusion

Stand Up India Scheme is one of the best schemes available for the upliftment of women entrepreneurs from the SC/ST category. The scheme is made available to over 1.74 lakh banks throughout India. Read all the scheme related documents carefully before applying for the scheme.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.