The Hon’ble Prime Minister, Shri. Narendra Modi in his Independence Day address on August 15, 2015 unveiled his game changer campaign “Start-Up India” Stand-Up India to promote entrepreneurship at grass root level for economic empowerment and job creation. The Stand-Up India Scheme launched to coincide with the celebration of the 125th birth anniversary of Dr. Babasaheb Bhimrao Ambedkar, seeks to leverage the institutional credit structure to reach out to the underserved sector of people such as Scheduled Caste, Scheduled Tribe and Women entrepreneurs so as to enable them to participate in the economic growth of the nation. The scheme will benefit atleast 2.5 lakh borrowers through 1.25 lakh bank branch network located across the country.

The objective of the Stand-Up India Scheme is to facilitate bank loans between INR 10 lakh to INR 100 lakh to atleast one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and atleast one Woman borrower per bank branch of all scheduled commercial banks for setting up a greenfield enterprise.

The Stand-Up India portal provides a digital platform based on 3 pillars to support enterprises promotion among entrepreneurs from SC, ST and Women category through

1. Handholding support
2. Providing Information on financing
3. Credit Guarantee.

Potential entrepreneurs can navigate through the interactive portal for support services such as training, skill development programs, mentorship, guidance etc. or register for loans by accessing the portal. The portal also provides crucial links to Central and State SC/ST Corporations, Industry Associations of SC/ ST and/or Women entrepreneurs.
For details regarding Small Industries Development Bank of India please visit www.sidbi.in

Title of the Scheme

Stand-Up India Scheme for financing SC/ST and/or Women Entrepreneurs.

Objective

The objective of the Stand-Up India scheme is to facilitate bank loans between  10 lakh and  1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.

Eligibility

SC/ST and/or woman entrepreneurs, above 18 years of age.

Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.

In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.

Borrower should not be in default to any bank/financial institution.

Nature of Loan

Composite loan (inclusive of term loan and working capital) between  10 lakh and upto  100 lakh.

Purpose of Loan

For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

Size of Loan

Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.

Interest Rate

The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).

Security

Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.

Repayment

The loan is repayable in 7 years with a maximum moratorium period of 18 months.

Working Capital

For drawal of Working capital upto  10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower.

Working capital limit above  10 lakh to be sanctioned by way of Cash Credit limit.

Margin Money

The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution