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This scheme by the Ministry of Finance helps Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs Read More... get bank loans to start new businesses in manufacturing, services, trading, and agriculture-related fields. Read less

Details

Dreaming of starting your own business? The Stand-Up India Scheme is here to help make that dream a reality, especially for aspiring entrepreneurs from Scheduled Caste (SC), Scheduled Tribe (ST), and women communities.

What Is This Scheme?

The Stand-Up India Scheme, launched by the Ministry of Finance, is designed to encourage entrepreneurship among SC/ST and women individuals. It facilitates bank loans between ₹10 lakh and ₹1 crore to help you set up a new business (greenfield enterprise). You can use this loan for manufacturing, services, trading, or any business related to agriculture.

Who Can Benefit From This Scheme?

This scheme specifically targets SC/ST individuals and women entrepreneurs. If you're a male applicant, you must belong to the SC or ST category. For businesses with more than one owner, at least 51% of the ownership and control must be with an SC/ST or woman entrepreneur.

Why This Scheme Is Important

The Stand-Up India Scheme plays a crucial role in empowering marginalized communities by providing them with the financial support needed to launch their own ventures. It aims to foster economic independence and create employment opportunities, contributing to the nation's growth.

Objective

This scheme by the Ministry of Finance helps Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs get bank loans to start new businesses in manufacturing, services, trading, and 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 setting up new enterprises (greenfield projects).
Male applicants must belong to the SC or ST category.
Applicants must be at least 18 years old.
Applicants should not have any outstanding defaults with banks or financial institutions.

How To Apply

You can approach any branch of a Scheduled Commercial Bank across the country.
The web portal by SIDBI can provide hand-holding support to guide you through the process.
For cases with exposure above ₹25 Lakhs, detailed project reports and financial statements will be required.
Ensure you have all the necessary documents ready (refer to the 'Documents Required' section).

Official Link: http://standalone.nsic.in/standup/

Documents Required

Identity Proof: Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers.
Residence Proof: Recent electricity bill, property tax receipt, telephone bill / Passport / Voter’s ID Card.
Business Address Proof
Non-Defaulter Certificate: Proof that you are not in default with any bank/financial institution.
Company/Partnership Documents: Memorandum and articles of association (for companies) / Partnership Deed (for partnerships).
Financial Documents: Assets and liabilities statement of promoters and guarantors, along with latest income tax returns.
Property Documents: Rent Agreement (if premises are rented) and clearance from pollution control board (if applicable).
Registration: SSI / MSME registration (if applicable).
Projected Financials: Projected balance sheets for the next two years (for working capital) and for the loan tenure (for term loan).
Security Documents: Photocopies of lease deeds/title deeds of properties offered as primary and collateral securities.
Category Proof: Documents to establish SC/ST category, where applicable.
Ownership Proof: Certificate of incorporation from ROC to show majority stake holding by SC/ST/Woman (for companies).

For cases with loan exposure above ₹25 Lakhs:

Unit Profile: Details of promoters, directors, business activity, office/plant addresses, and shareholding pattern.
Group Company Financials: Last three years' balance sheets of associate/group companies (if any).
Project Report: Detailed report for the proposed project including machinery details, suppliers, financial projections (capacity utilization, production, sales, profit & loss, balance sheets for loan tenor), labour/staff hiring, and basis of financial assumptions.
Business Operations Details: Manufacturing process (if applicable), profile of executives, tie-ups, raw material details, buyer details, competitor analysis, and company strengths/weaknesses.

Official Sources

For more details, please refer to the official guidelines and portal.

FAQ’s

What kind of businesses can I start with a Stand-Up India loan?

You can use the Stand-Up India loan to start businesses in manufacturing, trading, services, or any activities related to agriculture, such as pisciculture, beekeeping, poultry, dairy, fishery, agri-clinics, and food processing.

What is the maximum time I have to repay the loan?

The loan typically needs to be repaid within 7 years. There's also a provision for a moratorium period, which means you might get up to 18 months before you have to start regular repayments.

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

Stand-Up India focuses on supporting SC/ST and women entrepreneurs to establish new, greenfield projects through bank branches. Start-Up India, on the other hand, aims to boost innovative and technology-driven businesses, whether they are new or already existing.

How does the 'hand-holding support' work?

Hand-holding support means getting guidance for new entrepreneurs. This includes help with training, filling loan applications according to bank rules, and general business setup advice. You can get this through the scheme's web portal or by visiting a bank branch.

Who is eligible to get loans under this scheme?

You must be at least 18 years old, not be in default with any bank, and if you are male, you must belong to the SC or ST category. Women entrepreneurs from any background are eligible.

What is the loan amount and structure offered?

The scheme offers a composite loan that includes both term loan and working capital. The loan amount can range from ₹10 Lakhs up to ₹100 Lakhs, covering up to 85% of your project cost.

Which banks offer loans under the Stand-Up India Scheme?

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

What are considered 'activities allied to agriculture' for the loan?

These include things like fish farming (pisciculture), beekeeping, raising livestock, poultry, dairy farming, grading and sorting agricultural produce, running agri-clinics and agri-business centres, and food processing industries.

What will be the interest rate on the loan?

The interest rate will be the lowest applicable rate for your bank's rating category. It won't exceed the bank's base rate (or MCLR) plus 3% and any applicable tenor premium.

What is the main goal of the Stand-Up India Scheme?

The primary goal is to support SC/ST and women entrepreneurs in establishing new businesses in manufacturing, trading, services, or agriculture-related sectors by providing them with bank loans.