Introduction to Stand-up India Scheme 2020
Stand-Up India Scheme offers funds to all the women entrepreneurs. Also Including the woman who comes in the SC/ST category of the society. Stand-up India introduces the system as a scheme by the Government.
So, that they can provide credit services mainly to SC/ST category people(women). The main reason to introduce such a scheme is to assist all the banks in giving loans to at least one SC/ST applicant, including one female entrepreneur at each banking, branch to enable them to start their own business. Also, the amount offers to the applicants is from about Rs.10 Lakh to Rs.1 crore.
Stand-up India Scheme – Interest Rate & Eligibility – 2020
|Interest Rate||Bank’s MCLR + 3% + tenor premium|
|Repayment tenure||Max. Seven years with a moratorium period up to 18 months|
|Min. age criteria||The 18 years for SC/ST and women entrepreneur|
|Loan amount||Between Rs. 10 lakh and Rs. 1 crore|
|Loans offered for||Only Green Field Projects (first-time venture)|
|Shareholding stake||51% for Non-Individual Enterprises|
|Borrower’s financial repayment status||Never defaulted to any bank or NBFC|
|Working Capital Limit||Up to Rs. 10 lakh in the form of a Cash Credit limit|
Note: The interest rates mentions are subject to change . And also depend on the sole responsibility of the Stand-up India authority, bank, NBFC, and RBI. GST and service tax impose extra on the mention charges.
Moreover, the Stand-up India Scheme will work through all branches of India’s Schedule commercial banks. The main emphasis of the scheme is to give funding to service providers, manufacturing & trade sectors. For non-individual enterprises, at least 51% of regulating and the shareholding stake hold. That is either by women borrower or an individual belonging to SC/ST category.
Features of Stand-up India Scheme
- The effective interest rate is set by the bank you want in that category i.e., banks ‘do not pass the MCLR + 3% + tenor premium.
- Also, the minimum loan terms the Stand-up scheme is 18 years for SC / ST men and women applicants.
- The loan only offers for Green Field Projects. That means for entrepreneurs who are venturing in manufacturing or trading sectors for the first time.
- The applicants applying in this scheme must not default before to any bank or NBFC.
- A composite loan that adds term loans and working capital. It offers within Rs. 10 lakh and up to Rs. 1 crore.
- Above all loan security determines by collateral security. Another security is from the decision of banks i.e., a guarantee of the Credit Guarantee Fund Scheme.
- Consequently, loans use is for all the SC / ST people and women entrepreneurs. So, that they can commence new businesses. But only in the commercial, service, and manufacturing sectors.
- Also, the payment period pays up to 7 years with a maximum suspension limit of up to 18 months.
Steps to register for Stand-up India Scheme
The steps you must follow to register for Stand-up India business are :
Firstly, You must log in to Stand-up India’s official website.
That is: ‘https://www.standupmitra.in/Login/Register.’
Also, you must fill in the registration form. By firstly mentioning the business location. That includes business address, state, district, village, town, city, & pin code.
Then, select whether the promoter belongs to the women category. And also holds a 51% stake or higher or the same applies to SC/ST category.
Meanwhile, the next applicant can choose the nature of the business planned. The desired loan amount, nature, and description of business activity. Also, the status of space for business and choose the drop-down of first-time entrepreneurs.
Moreover, he/she requires to mention his/her previous business experience. By mentioning business activity, years of experience, and the nature of business.
After that, one needs to right tick the wish handholding support, as per the need and interest.
In conclusion, the registration is about the applicant’s personal information that is Name. Also, include the enterprise’s name, user name, mobile number, email, and kind of constitution.
After that, by clicking on the register, the applicant proceeds to apply for the Stand-up India scheme. That, too, with the respective financial institution and their officials connects for additional formalities.
Documents Required for registration.
- Passport size photos
- Proof of Identity: Passport, Driving License, Voter ID Card and PAN Card, etc.
- Proof of Residence: Voter ID Card, Passport, Latest Electricity, Telephone Bill, Property Tax Receipt, etc.
- Address proof of business
- Memorandum and Articles of Association of the company
- Partnership deed Agreements of the partners
- Photocopy of leasehold works
- Lease agreement
- Balance Sheet Association for the last three years
- Statement of assets and liabilities of promoters and guarantees
So, in the end, it’s clear that Stand-up India Scheme registration is for all the SC/ST and women entrepreneurs. Also, Stand-up India always works to increase economic empowerment. Moreover, it helps in the creation of employment for all the SC/ST and women entrepreneurs. The scheme is set to serve a minimum of 2.5 lakh borrowers within 1.25 lakh bank branches located nationwide.
This scheme gives a digital platform to help entrepreneurs from the SC/ST category and women entrepre neurs. By credit guarantee, handholding support, and providing information on financing. Extra services in this scheme are education, training, mentorship, guidance, and skill advancement programs for entrepreneurs.