The Stand up India loan is a loan offered as a part of Prime Minister Shri Narendra Modi’s Stand up India / Startup India program. The primary objective of this loan is to promote and boost the entrepreneurship among people belonging to the Scheduled Castes (SCs) and Scheduled Tribes(STs) class and women.
According to the census held in 2011, there are more than 200 millions of people from Scheduled Castes community. To bridge the gap of the humungous shortage of jobs in our country, people from SCs and STs and women are encouraged to change their state from a job seeker to a job creator. And to aid them the gover
nment is lending a supportive hand in means of Stand up India loans!!!
Eligibility & Conditions
- SC/ST/Woman entrepreneur must be of age 18 years or above.
- Sanctioned only for Green field enterprises, e., first time venture of the borrower in manufacturing, services or trading sectors.
- Loan amount between INR 10 Lakhs to INR 1 Crore will be sanctioned.
- In case of an non-individual entity, not less than 51% of share holding and controlling stake must be held either with the SC/ST/Woman entrepreneur.
- Should not be in default to any financial institution / bank.
Nature, Size & Margin of the Loan
- This is a composite loan which is inclusive of both Term loan and Working capital.
- A maximum of 75% of the project cost will be sanctioned as the loan amount.
- 75% of project cost will not apply if borrower’s contribution along with support from any other schemes is beyond 25% of project cost.
- 25% of the margin money can be raised from other State / Central schemes.
- In all cases borrower should bring in a minimum of 10% as his contribution.
|Interest Rate||Base Rate (MCLR) + 3% + Tenor Premium)|
|Security||Besides primary security, loan may be secured by collateral security or Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by banks|
|Repayment||7 years with maximum moratorium period of 18 months|
|Working Capital||• Withdrawal up to INR 10 Lakhs can be sanctioned via overdraft facility.
• Rupay debit card will be issued to borrower
• Working capital above INR 10 Lakhs will be sanctioned via Cash Credit limit.
Where to Apply
Interested candidates who meet the above mentioned eligibility criteria can apply for the loan through the below mentioned web portal online:
Stand up Loans will be provided only to the applicants (Login ) who abides to the rules and guidelines of the Stand up India scheme. Loans will be approved only to those who really has the need and has the potential to achieve. This will be evaluated by the designated board to review all the loan applications.
Basic eligibility criteria for Stand up India scheme:
- The company should be a private limited or a LLP or a partnership firm.
- The company/firm’s age should not be more than 5 years.
- The annual turnover of the company should not exceed Rs. 25 Crores.
- The company should deal with commercial goods or innovating consumer products with approval from DIPP.
- While applying for the loan, the company should also produce few more letters/documents. These are to show that the company is innovative and approved by DIPP:
- Recommendation letter by incubator in PG Indian College
- Recommendation letter from incubator funded by Indian Government
- Recommendation letter by incubator recognized by Indian Government
- Granted patent by Indian patent and trademark office that is related to business
- Funded by incubation fund / private equity fund / angel fund / accelerator / angel network.