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This scheme from the Ministry of Finance helps SC/ST and women entrepreneurs by providing bank loans to Read More... start new businesses in manufacturing, services, trading, or agriculture-related fields. Read less

Details

Looking to start your own business but need financial support? The Stand-Up India Scheme is designed to help aspiring entrepreneurs from Scheduled Caste (SC), Scheduled Tribe (ST) communities, and women by providing access to bank loans.

What Is The Stand-Up India Scheme?

This initiative by the Ministry of Finance aims to empower SC/ST individuals and women by facilitating bank loans. These loans are for setting up new businesses ('greenfield enterprises') in sectors like manufacturing, services, trading, or activities connected to agriculture. The goal is to ensure at least one SC/ST borrower and one woman borrower gets a loan from each bank branch. For businesses not owned by individuals, at least 51% ownership must be held by SC/ST or women entrepreneurs.

Who Can Benefit?

The scheme primarily targets individuals belonging to Scheduled Castes (SC) and Scheduled Tribes (ST) to set up new businesses. Women entrepreneurs are also a key focus. If you are a male applicant, you must belong to the SC or ST category. You also need to be at least 18 years old and not have any outstanding defaults with banks or financial institutions.

Why This Scheme Is Important

Stand-Up India is a crucial step towards financial inclusion and promoting entrepreneurship among underserved sections of society. By providing easier access to credit, it aims to foster economic growth and create self-employment opportunities, contributing to a more inclusive and diverse business landscape in India.

Objective

This scheme from the Ministry of Finance helps SC/ST and women entrepreneurs by providing bank loans to start new businesses in manufacturing, services, trading, or agriculture-related fields.

Benefits

For death due to accident –Rs.50,000.

For permanent total disability (loss of two eyes or two limbs, loss of one eye and one limb) –Rs.50,000.

For permanent partial disability (loss of one eye or one limb) –Rs.25,000.

Sources and references

Guidelines

Eligibility Criteria

The loan is for establishing new ('greenfield') enterprises.
Male applicants must belong to the SC or ST category.
Applicants must be 18 years of age or older.
The applicant should not be in default to any bank or financial institution.

How To Apply

You can initiate the application process through the Stand-Up India portal or by visiting your nearest branch of a Scheduled Commercial Bank. The portal also provides details on agencies that can offer hand-holding support throughout the application process.

Official Portal: You can find more information and apply through the official portal maintained by SIDBI.

Documents Required

To apply for the Stand-Up India Scheme, you will generally need the following documents:

Proof of Identity: Voter’s ID Card, Passport, Driving License, PAN Card, or signature identification from your bank.
Proof of Residence: Recent electricity bill, telephone bill, property tax receipt, Voter's ID Card, or Passport.
Proof of Business Address.
A declaration stating you are not in default with any bank or financial institution.
For companies: Memorandum and Articles of Association. For partnerships: Partnership Deed.
Assets and liabilities statement of promoters and guarantors, along with their latest income tax returns.
If the business premises are rented, a Rent Agreement and clearance from the pollution control board (if applicable).
SSI/MSME registration, if applicable.
Projected balance sheets for the next two years (for working capital) and for the loan tenure (for term loans).
Copies of lease deeds/title deeds for properties offered as securities.
Documents to prove SC/ST category membership, where applicable.
Certificate of Incorporation from the Registrar of Companies (ROC) to confirm majority stake holding by SC/ST/Woman.

For Cases with Exposure Above ₹25 Lakhs:

Profile of the unit, including promoters, directors, business activity, addresses, and shareholding pattern.
Last three years' balance sheets of any Associate or Group Companies.
Project report detailing machinery, suppliers, financial projections (production, sales, profit, loss, balance sheets for loan tenor), labor requirements, and assumptions for financial details.
Information on the manufacturing process (if applicable), key executives, business tie-ups, raw material sources, buyer details, competitor analysis, and the company's strengths and weaknesses.

Official Sources

For detailed guidelines and updates, please refer to the official sources.

FAQ’s

What types of businesses can get a loan under the Stand-Up India Scheme?

Loans are available for new businesses in manufacturing, trading, and services sectors. This also includes activities related to agriculture, such as pisciculture, beekeeping, poultry, dairy, fishery, agri-clinics, and agro-processing centres.

What is the repayment period for loans under this scheme?

You can repay the loan within 7 years. There's also a maximum moratorium period of 18 months allowed.

How much loan amount can I get?

The scheme provides a composite loan, which includes both term loan and working capital, ranging from ₹10 Lakhs up to ₹1 Crore. This loan can cover up to 85% of the project cost.

What is the interest rate on these loans?

The interest rate will be the lowest applicable rate by the bank for that specific category. It will not exceed the base rate (MCLR) plus 3% and a tenor premium.

Who provides the loans under the Stand-Up India Scheme?

All branches of Scheduled Commercial Banks across India are eligible to provide loans under this scheme.

How does the 'Hand-holding Support' work?

Hand-holding support is assistance provided to new entrepreneurs. It covers guidance from the initial training phase, help with filling loan applications as per bank requirements, and other business setup needs.

What's the main difference between Stand-Up India and Start-Up India?

Stand-Up India focuses on helping SC/ST and women entrepreneurs launch new ('greenfield') projects through bank branches. Start-Up India, on the other hand, aims to promote innovative and technology-driven enterprises, whether new or existing.

What exactly does 'activities allied to agriculture' mean for loan purposes?

These activities include things like fish farming (pisciculture), beekeeping, raising livestock, poultry, dairy farming, fisheries, setting up agri-clinics and agri-business centres, and food and agro-processing units.

What is the primary goal of the Stand-Up India loan?

The main purpose is to support SC/ST and women entrepreneurs in establishing a new business in manufacturing, trading, services, or any activity linked to agriculture.

How can I get help with hand-holding support?

You can get help by exploring the Stand-Up India portal or by asking for assistance at the nearest branch of a Scheduled Commercial Bank. They can guide you on the type of hand-holding support you need.