Stand-Up India Scheme: A Comprehensive Guide for SC/ST and Women Entrepreneurs

Last updated on December 25th, 2024 at 03:57 pm

The Stand-Up India Scheme is a government initiative designed to empower Scheduled Caste (SC), Scheduled Tribe (ST), and Women Entrepreneurs by facilitating bank loans ranging from ₹10 lakh to ₹100 lakh.

The scheme aims to support the establishment of greenfield enterprises, making it a pivotal program for first-time business owners in the manufacturing, services, or trading sectors.

Key Features of the Stand-Up India Scheme

1. Loan Amount:
   • Minimum loan: ₹10 lakh
   • Maximum loan: ₹100 lakh
2. Eligible Sectors:
   • Manufacturing
   • Services
   • Trading
   • Activities allied to agriculture (e.g., pisciculture, beekeeping, poultry, livestock rearing, food processing, etc., excluding crop loans and land improvement loans).
3. Ownership Requirements:
   • For non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an SC/ST or a woman entrepreneur.

Eligibility Criteria

1. Applicants must be SC/ST and/or women entrepreneurs aged 18 years or above.
2. The loan is exclusively available for greenfield projects, signifying the first-time ventures of the beneficiaries.
3. Borrowers should not have any default history with banks or financial institutions.
4. Enterprises engaged in eligible activities under agriculture or related services can also avail of the scheme.

Nature and Purpose of the Loan

The loan provided under the Stand-Up India Scheme is a composite loan, which includes:

1. Term Loan: Funding for fixed assets like machinery, equipment, or infrastructure.
2. Working Capital: Financing day-to-day operational needs.

The loan can be used for:

• Setting up a new enterprise in manufacturing, trading, or services sectors.
• Establishing activities allied to agriculture.
• Purchase of land (subject to approval as part of the project plan).

Loan Details

1. Size of the Loan:
   • The loan can cover up to 85% of the project cost. However, this requirement is waived if the borrower’s contribution (along with support from other schemes) exceeds 15% of the project cost.
2. Security Required:
   • Primary assets financed by the bank serve as the security.
   • Banks may also request collateral security or avail the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).

How to Apply for the Stand-Up India Scheme

Offline Application

1. Submit the application at the nearest bank branch.
2. Alternatively, approach the Lead District Manager (LDM) of your district, who will forward your application to the appropriate service branch for processing.

Online Application

1. Visit the official Stand-Up India portal at standupmitra.in.
2. Follow these steps:
   • Select the category (SC/ST/Women Beneficiary).
   • Choose the type of business, loan amount, and other business details.
   • Enter your personal and business-related information.
3. Submit the application. You will be contacted by the designated bank branch for further processing.

Benefits of the Stand-Up India Scheme

1. Encourages Entrepreneurship:
   • Promotes first-time ventures among SC/ST and women entrepreneurs.
2. Simplified Application Process:
   • Offers both online and offline application modes for convenience.
3. Access to Credit:
   • Provides financial support with flexible security requirements.

Conclusion

The Stand-Up India Scheme serves as a significant step toward fostering entrepreneurship among underrepresented groups. By offering financial support and a simplified application process, the scheme ensures that SC/ST and women entrepreneurs can confidently embark on their entrepreneurial journeys. Whether through manufacturing, services, or allied agriculture activities, the Stand-Up India Scheme paves the way for inclusive economic growth and development.

To take advantage of this opportunity, potential beneficiaries can easily apply through the Stand-Up India official website or by visiting their nearest bank branch.

FAQs About the Stand-Up India Scheme

1. What is the purpose of the Stand-Up India Scheme?

• The scheme aims to promote entrepreneurship among SC/ST and women entrepreneurs by providing financial assistance for greenfield projects.

2. Who is eligible for the Stand-Up India Scheme?

• SC/ST and women entrepreneurs above 18 years of age who are starting their first business venture in manufacturing, services, trading, or allied agricultural activities.

3. What is the loan amount available under the scheme?

• The loan amount ranges from ₹10 lakh to ₹100 lakh.

4. Can I apply for the scheme if I have defaulted on a previous loan?

• No, borrowers must not have any default history with banks or financial institutions.

5. How do I apply for the Stand-Up India Scheme?

• Applications can be submitted online through standupmitra.in or offline by visiting a nearby bank branch or contacting the Lead District Manager (LDM).

6. What security is required for the loan?

• The primary assets financed by the loan serve as security. Additional collateral may be required, or banks may use the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).

7. What sectors are eligible under the scheme?

• Eligible sectors include manufacturing, services, trading, and certain agriculture-related activities.

8. Can the loan be used to purchase land?

• Yes, land purchase is permitted if it is part of the project plan and approved by the financial institution.

9. What is a greenfield project?

• A greenfield project refers to a first-time business venture by the borrower in the manufacturing, services, or trading sectors.

10. Is there a deadline for applying to the scheme?

• There is no specific deadline, but applicants should check with their bank for any updates or changes in the scheme.