Standup India Scheme: Eligibility, Documents, Benefits

Entrepreneurship in India is currently seeing rapid evolution. But access to finance poses a challenge for many SC/ST and women entrepreneurs. The Ministry of Finance came up with the Standup India Scheme amidst this issue. The scheme facilitates bank loans for establishing greenfield enterprises in various sectors. 

The scheme not only provides financial assistance but also offers mentoring and support. It is there to help entrepreneurs steer through the complexities of starting a business. Its primary goal is to create a more inclusive business environment. The marginalised communities and women benefit from it and become successful entrepreneurs.

What is the Standup India Scheme?

This government initiative provides financial and hand-holding support to SC/ST and women entrepreneurs. The Standup India Scheme enables them to obtain bank loans between ₹10 lakh and ₹1 crore to set up greenfield enterprises. It applies to businesses in:

• Manufacturing
• Services
• Trading
• Activities allied to agriculture

Underrepresented groups of the country have a ticket to entrepreneurship opportunities through this scheme.

Non-individual enterprises are eligible if at least 51% of the shareholding and controlling stake is held by an SC/ST or a woman entrepreneur. The scheme also integrates mentoring, skill development, and project report assistance through the SIDBI portal. It provides a robust support system for new business owners.

Who it Benefits

The Standup India Scheme primarily benefits:

• SC/ST entrepreneurs of the age of 18 years and above.
• Women entrepreneurs (irrespective of caste) of the age of 18 years and above.
• Individuals aiming to establish greenfield enterprises.
• Entrepreneurs requiring financial guidance and hand-holding support for starting a business.

The scheme ensures that at least one SC/ST and one woman borrower per bank branch gets access to loans under this initiative. It actually is there to promote inclusive growth and financial empowerment.

Key Features & Benefits of Standup India Scheme

• Loan Facilitation: Composite loan (term loan + working capital) from ₹10 lakh to ₹1 crore.
• Rupay Debit Card: Issued to borrowers for easy financial transactions.
• Support Ecosystem: SIDBI portal provides mentoring, training, project report preparation, and utility support.
• Inclusive Finance: Encourages entrepreneurship among SC/ST and women through accessible banking facilities.
• Agriculture-Linked Activities: Loans extend to allied activities such as pisciculture, beekeeping, poultry, dairy, agro-processing, and more.
• Greenfield Enterprises: Exclusively for setting up new enterprises, not existing businesses.

Entrepreneurial Support Services

The scheme ensures entrepreneurs get guidance on every step:

• Training programs for business setup.
• Assistance in preparing project reports.
• Help with loan application submission.
• Guidance for work shed and utility services.
• Access to subsidy schemes and mentorship networks.

Eligibility Criteria for Standup India Scheme

To qualify for a Stand Up India Loan, applicants must meet the following criteria:

• Be an SC/ST or woman entrepreneur.
• Age: 18 years or older.
• Must be setting up a greenfield enterprise in manufacturing, trading, services, or agriculture-related activities.
• Must not be in default with any bank or financial institution.
• For non-individual enterprises, 51% of stake must belong to eligible categories.

Exclusions

• Existing businesses are not eligible.
• Individuals with defaulted loans cannot apply.
• Entrepreneurs already availing of similar financial assistance from other schemes are excluded.

Documents Required

• Identity Proof: Voter ID, PAN, Passport, Driving License, or bank-verified signature.
• Residence Proof: Recent electricity bill, telephone bill, property tax receipt, Passport, or Voter ID.
• Business Address Proof and SSI/MSME registration if applicable.
• Financial Documents: Assets and liabilities statement, latest income tax returns, projected balance sheets, rent agreement, and lease/title deeds of properties.
• Incorporation Certificates: For non-individual enterprises to prove majority SC/ST/Women ownership.
• Category Certificates: SC/ST certificates, where applicable.
• Project Details: Project report, machinery details, supplier and buyer information, production, and financial assumptions.

For loans above ₹25 lakh, additional documentation, including balance sheets of associate companies, manufacturing processes, and executive profiles is required.

Application Process

Online

1. Visit the StandUp India portal: www.standupmitra.in
2. Register with complete personal and business details.
3. Select category (SC/ST/Woman) and confirm stakeholding percentage.
4. Enter nature of business, the loan amount, and the location details.
5. Provide details of past business experience and hand-holding requirements.
6. Submit the registration form.
7. Upon approval, initiate the loan application process with the respective bank for verification and loan disbursal.

Offline

• Apply via your nearest bank branch or Lead District Manager (LDM) office.
• Submit the required documents and application form for verification.

Check Status

Applicants can track their loan application status via:

• Bank branch or LDM office where the application was submitted.
• StandUp India portal, using login credentials.

Benefit Disbursal

• Loan amount is disbursed as per bank approval, based on the project cost.
• Repayment Tenure: Maximum 7 years, with a moratorium period of up to 18 months.
• Interest Rate: Base rate (MCLR) + 3% + tenor premium, not exceeding bank-specific rates.
• Borrowers can use the Rupay debit card for convenient transactions.
• Hand-holding support continues during the loan implementation phase.

Conclusion

So, the Standup India Scheme becomes a transformative initiative with the aim of promoting entrepreneurship. This scheme is quite promotional among SC/ST and women across India. The scheme empowers underrepresented groups to establish greenfield enterprises in various sectors by providing:

• Accessible loans
• Mentorship
• Support ecosystem

With financial inclusion, capacity-building support, and a structured application process, the Standup India Scheme serves as a stepping stone toward inclusive economic growth and the creation of self-reliant entrepreneurs in India. 

FAQs on Standup India Scheme

1. What is the loan amount under the Stand Up India Scheme?

Composite loan between ₹10 lakh and ₹1 crore, inclusive of term loan and working capital.

2. Who can apply for Stand Up India Loan?

SC/ST and women entrepreneurs aged 18 or above setting up greenfield enterprises.

3. Can existing businesses apply?

No, the scheme is exclusively for new enterprises (greenfield projects).

4. What sectors are covered under Stand Up India Loan?

Manufacturing, trading, services, and activities allied to agriculture such as poultry, dairy, agro-processing, pisciculture, and more.

5. What is the repayment period?

Up to 7 years with a maximum moratorium of 18 months.

6. Is hand-holding support provided?

Yes, through the SIDBI portal and bank branches, covering training, mentoring, and project report assistance.

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