Stand Up India

Introduction:

Stand Up India Scheme is for financing SC (Scheduled Caste) or ST (Scheduled Tribe) and/or Women Entrepreneurs.

About the Scheme

The objective of Stand-Up India scheme is to facilitate bank loans between ₹ 10 lakh and ₹ 1 crore to Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and Woman borrower for setting up a greenfield enterprise (first time venture), in manufacturing, services or 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 for this scheme is available only for greenfield projects. Green fields signifies, in this context the first time venture of the beneficiary in the manufacturing, 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 woman entrepreneur.
    • Borrower should not be I default to any bank/financial institution.
Nature of Loan Composite Loan (inclusive of term loan & working capital) between INR 10 Lakh and up to INR 100 lakh(Rs. In lakh)
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 borrowers 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 (MLCR) + 3% + tenor premium)
Security Besides primary security, the loan maybe 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.

Stand Up India is operated by all the branches of scheduled Commercial Banks in India.

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