Stand Up India Scheme 2023 is a blessing to the ones who are aspiring for business loans to start their new ventures. It offers funds to all the women entrepreneurs including the women who come in the SC/ST category of the society. Stand-up India introduces the system as a scheme by the Government. You can now avail loan between Rs 10 Lakh To Rs 1 crore in India. The loan amount is completely based on your requirement. Under this scheme, 1.25 lakh bank branches are ready to offer Stand Up India loan scheme to individuals annually especially to dalits, women and tribal entrepreneurs in the country.
Thus the banks 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.
Features Of Stand Up India Scheme 2023
Table of Contents
- 1 Features Of Stand Up India Scheme 2023
- 2 Objective Of Stand Up India Scheme
- 3 Loan Amount Under Stand Up India
- 4 Nature Of Loan Under Stand Up India Scheme
- 5 Repayment Criteria For Loan Under Stand Up India Scheme
- 6 Facts About Stand Up Scheme India
- 7 Need For Stand Up India Loan Scheme
- 8 Stand Up India Scheme 2023 Interest Rate Eligibility
- 9 Benefits Of Stand Up India
- 10 Tax Benefits Under Stand Up India Loan Scheme 2023
- 11 Step 1
- 12 Step 2
- 13 Step 3
- 14 Step 4
- 15 Step 5
- 16 Step 6
- 17 Step 7
- 18 Step 8
- 19 What is Stand Up India Loan Scheme?
- 20 Who are eligible for loans under Stand Up India scheme 2023?
- 21 Which business projects are eligible for loan under Stand Up India scheme?
- 22 What is the nature of loan under Stand Up India Scheme 2023?
- 23 What is the collateral security requirement to avail loan under Stand Up India Scheme?
- 24 What is the repayment period for stand up India scheme?
The Prime Minister Of India Shri Narendra Modi is trying to generate employment opportunities among the reserved and women, to stand up for themselves and initiate their set ups to earn good money. This is being done by providing loan to start their own business.
This mission aims at boosting the capabilities of the entrepreneurs of the special category candidates and women. This mission was launched in 2016 by the Department Of Financial Services and is under the supervision of the Ministry Of Finance, India.
The candidates who qualify for financial assistance from banks and NBF’s get loans. The features of Stand Up India Scheme 2023 will give you more clear picture of this scheme.
It is important for you to know that both stand up India and Start Up India are same to certain extent because they enable the beneficiaries to avail financial assistance.
Stand Up India dedicates its service for the upliftment of Scheduled Caste and Scheduled Tribes as well as women. The women in India have faced many challenges in life so now it is the time to give business opportunities to them.
Objective Of Stand Up India Scheme
It aims to remove the challenges that are faced by the SC/ST Community people in the country and women. This scheme aims at providing loan facility to create Greenfield projects be it trading, manufacturing or services.
Loan Amount Under Stand Up India
The loan amount that is allowed under this scheme falls between Rs 10 Lakh to Rs 1 crore. If the borrower contribution is more than 25% of the total project cost then the cap of 75% finance doesn’t apply.
In case the company is a group enterprise, 51% minimum stake and shareholders must belong to women or a member of SC/ST Community.
Nature Of Loan Under Stand Up India Scheme
The nature of loan under this scheme is composite that means it is a term loan and loan for working capital.
The loan is provided by all scheduled commercial banks and NBFC’S who abide by the SIDBI obligations.
You need to provide collateral or security that is reinforced by the provision of Stand Up India Scheme Subsidy.
Repayment Criteria For Loan Under Stand Up India Scheme
The repayment criteria under this loan scheme is very liberal and can extend to a maximum of 7 years including moratorium period of 18 months.
Working Capital Finance
You can withdraw Rs 10 lakh in the form of overdraft. If the demand extends this limit then the facility is converted into cash credit with the appropriate limit.
It is stated that the State Government or Central Government will provide subsidy of 25% under Stand Up India Loan Scheme 2023. The project promoter will give his share of 10%.
Facts About Stand Up Scheme India
- RuPay debit card is issued for withdrawing the credit.
- Credit History needs to be fine of the borrower, then only he can get the loan.
- You can also approach the refinance window under this scheme through Small Inductries Development Banks of India SIDBI for Rs 10,000 crore.
- There is full support of the government to the borrowers under this scheme as comprehensive support is provided for pre loan training like facilitating loan, marketing etc.
- Stand Up India has an online web portal where the government assists applicants in online application and customer support.
- The main aim of this scheme is to provide the institutional credit to the minority section by funding them.
- It has an advantage over all the existing schemes by the government.
- There is a pre loan and operational phase in this scheme and the government helps the applicants through both these phases.
Need For Stand Up India Loan Scheme
These days only established cities can vaail loan for more infrastructural development. But under this loan scheme, new industries are emerging. This will add to the development of 1.25 lakh places in the country.
After the nationalization of banks, 40% of the population did not have access to laon but after the stand up india scheme was launched this figure has changed drastically.
The main need is to provide loan and financial help to not just big companies but to a common man as well.
Stand Up India Scheme 2023 Interest Rate Eligibility
|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 mentioned 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 need to be of women borrower or an individual belonging to SC/ST category.
Benefits Of Stand Up India
When the government launches any loan scheme, its aim is to provide benefit to the citizens of the country and same is the aim of Stand Up India Scheme. If you are going to start a trading or manufacturing business you can try for loan under this scheme. Here are the benefits of Stand Up India Scheme 2023.
- The utmost aim is to provide encouragement and motivate the entrepreneurs to set up their own ventures so that unemployment can be reduced in the country.
- If you are an investor and reading this article, then you should know this scheme is a god platform to get professional advice, knowledge and time about laws. It will assist you in starting up your new venture.
- You can also get set up aid.
- Another major benefit is that you need not worry much about how to pay back the loan amount as you have a 7 years tenure to repay the loan and this can reduce your stress level. You need to repay a certain amount each year as per your choice.
- This scheme helps to reduce the legal, institutional, and operational hurdles for entrepreneurs.
- It helps to reduce unemployment and boost job opportunities for you and others. This leads to socio-economic empowerment of the revered communities and women in the country.
- It drives other forces of government as well like Make in India, Made in India. It also protects demographic dividend in the country.
Tax Benefits Under Stand Up India Loan Scheme 2023
- The loan applicants can get 80% rebate when you file patent application form. This is usually filled by the startups and gives more benefits than other companies.
- It also includes Credit Guarantee Fund and the entrepreneurs can also enjoy relaxation in Income Tax for initial three years.
- There is complete relaxation given to entrepreneurs for capital gain tax.
- For the companies who qualify for loan under this scheme, enjoy benefits like tax redemption on the profits made.
- It provides an ease to entrepreneurs during the initial set up of their entities as there is no burden of paying heavy taxes.
Challenges In Stand Up India Scheme
Every government scheme that is launched comes with some opportunities and challenges. Same is with Stand Up India also. Hete are the challenges with this scheme. If you fail to avail loan under this scheme you can try for Mudra Loan Yojana and start your new business.
The education of applicants as per their socio-economic background for entrepreneurship and women entrepreneurship is neglected and not paid much attention. If their education level is low, then this scheme is not helpful to them.
The criteria for this scheme says that your firm should be innovative. The products you produce need to be innovative. This can lead to delays and potential good entrepreneurs can be deprived of this opportunity.
The company needs to have a turn over of Rs 25 crore. There are just few women in rural areas who wish to take up this opportunity and start their ventures. These women do stop at the initial point because they are dominated by the interests. The Stand Up India has not mentioned any thing about the institutional remedies to cope up with these challenges.
The banking sector has not spread in a positive manner. Thus the challenges lack institutional back links, awareness among the applicants, digital division and a few technical challenges as well.
The funding help of 10 lakh to 1 crore is not that helpful for manufacturing sector.
The applicants of scheduled castes and tribes are not fully empowered in technical know how and do not have skills and knowledge in this sector.
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 like 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 Stand Up India Scheme 2023
You can now avail loan for your new startup and make it the most successful business in India. Here is the list of the documents you need to submit to avail bank loan.
- 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.
Frequently Asked Questions On Stand Up India Loan Scheme 2023
What is Stand Up India Loan Scheme?
Stand Up India is a scheme that was initiated by our worthy Prime Minister Modi Ji, with a mind set of improving the employment opportunities in India and create for jobs. The main objective of this scheme is to provide bank loans between Rs 10 lakh and Rs 100 lakh to a minimum of one SC/ST borrower and 1 women borrower per bank branch of all scheduled commercial banks to set up a greenfield enterprise.
Who are eligible for loans under Stand Up India scheme 2023?
All women and scheduled caste and scheduled tribe entrepreneurs are eligible to get loan under stand up India loan scheme.
Which business projects are eligible for loan under Stand Up India scheme?
All business projects thatrelate to manufacturing, trading or service sector allied to agricultre are eleigible for loan under this scheme. The activities that are considered under this scheme are: Bee Keeping, Pisciculture, poultry, livestock, rearing, grading, sorting, dairy,fishery, and a lot more.
What is the nature of loan under Stand Up India Scheme 2023?
The nature of loan is composite. It stands between Rs 10 lakh to Rs 1 crore representing upto 85% of the project cost are eligible. You will have to present the business project report in the concerned bank. We can surely help you in writing professional project report for your business type in reasonable amount.
What is the collateral security requirement to avail loan under Stand Up India Scheme?
In addition to mortgage of primary asset, the loan can be availed with collateral security or guarantee of credit guarantee scheme for stand up India loan scheme.
What is the repayment period for stand up India scheme?
The loan must be paid within 7 years or not exceeding the moratorium period of 18 months.
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