Stand Up India Scheme for Financing SC/ST and/or Women Entrepreneurs

Stand Up India Scheme: The Standup India Loan Scheme is the flagship loan scheme granted by the Government of India, launched by the honourable Prime Minister of India, Sri Narendra Modi on 05.06.2016. This loan aims to help boost the startup culture in India, and provide budding startups with financial aid. 

Over the years, the Standup India Loan Yojana has been extremely helpful in giving new startups a solid financial backing.

Keep reading to know the features, aims, amount granted, eligibility criteria, interest rates, etc, for the Start Up India Scheme here.

Stand Up India Scheme Overview

Scheme Name	Stand-up India Scheme
Launched By	The Government of India
Beneficiaries	SC, ST & Women Entrepreneurs
Eligibility Criteria	Must be a citizen of India
Objective	To financially aid the entrepreneurs of India
Amount Granted	Rs. 10 Lakhs – Rs. 1 Crore
Official Website	www.standupmitra.in

Standup India Loan Scheme Details

The Stand-up India Scheme was launched by the Government of India, under the leadership of Prime Minister Narendra Modi in 2016. This loan was launched with the goal of encouraging startup culture in India. 

Falling under the financial inclusion agenda of the government, the Standup India Scheme grants loan to budding and even established entrepreneurs belonging to ST & SC communities and also women entrepreneurs. 

Standup India Loan Scheme Objectives

• This scheme aims to foster and encourage the up and coming startups of India. 
• It also aims to provide financial assistance to entrepreneurs belonging to the SC, ST and women categories. 
• It aims to provide a low-interest loan that is easier for entrepreneurs to return in time without much financial strain on them. 

Stand Up India Scheme Features

• It provides loans without any collateral, which makes it accessible to even small entrepreneurs. 
• The low interest rate makes it a much better and safer alternative than other loan schemes. 
• It provides a safe and trusted financial aid, which all entrepreneurs of India can easily apply for. 

Standup India Scheme Beneficiaries

The Standup India Loan Scheme is a scheme specially targeted towards Scheduled Castes, Scheduled Tribes & Women Entrepreneurs. 

These selected categories will receive financial assistance and support directly from the government of India, under this scheme. 

Stand Up India Loan Repayment

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

Stand Up India Scheme Amount Granted

Beneficiaries of the Standup India Scheme can apply for a loan ranging from Rs. 10 Lakhs to Rs. 1 Crore. 

These loans are granted to people across various industries like manufacturing, service sector, trading, etc. 

Standup India Scheme Interest Rates

Interest Rate	MCLR (base) price of the bank + 3% + Tenure Premium
Minimum and Maximum Funding	₹10 Lakhs – ₹1 Crore
Shareholding Criteria	51% in the case of non-person corporations

Current Statistics of the Stand Up India Scheme

Total Applications	204732
Total Amount	Rs. 48042.66 crore
Sanctioned Applications	184206
Sanctioned Amount	Rs. 41465.31 crore
Handholding Agencies	24613
Lenders On-boarded	82
Branches Connected	137238
HHA Requests	3293

Banks associated with Stand Up India Scheme

Candidates who wish to apply for the Standup India Loan may choose any of the following banks:

• Axis Bank
• Indian Bank
• Bank of Baroda
• Indian Overseas Bank
• Bank of India
• Jammu & Kashmir Bank Ltd.
• Bank of Maharashtra
• Punjab and Sind Bank
• Canara Bank
• PNB Bank
• Central Bank of India
• SBI
• ICICI Bank
• Union Bank of India
• IDBI Bank
• UCO Bank

Benefits of the Standup India Scheme Loan

• It not only provides financial aid but also helps to empower new entrepreneurs, which ultimately creates new jobs in the country. 
• It also helps give an incentive to investors, and provides them with financial aid and also important financial advice on how to grow their company. 
• The beneficiaries of this loan are not under any financial duress to return the loan, as the 7 year return period on low interest rates makes it extremely easy for entrepreneurs to return the loan over time. 
• It helps to empower and nurture the small businesses of India, thus boosting the “Make in India” ideology of the Government. 
• The Standup India Scheme is backed by the government, and this it is extremely safe to take a loan from. The list of associated banks are also highly reputed, giving loan takers some peace of mind. 

Stand Up India Scheme Eligibility Criteria

• Must be a citizen of India. 
• The agency must be a LLP or a partnership firm.
• The turnover of the corporation should not be more than Rs. 25 crores
• If the entrepreneur belongs to the ST or SC category, they must be a woman. 
• The loan will be granted to fund field initiatives, i.e., the business should produce new and innovative products. 
• The applicant must not be a part of/or a financial institution or some other Organisation’s defaulter.
• The business enterprise must be handling any business or revolutionary client goods. An approval of DIPP is also required for the identical.

Stand Up India Scheme Challenges

• Most entrepreneurs and women belonging to SC & ST communities do not have much access to education, and thus they rarely are able to have their own startups. 
• This scheme aims to provide aid to progressive startup ideas, but the progressiveness of any startup is an extremely subjective process and might give rise to bias. 
• Very few entrepreneurs have a turnover of Rs. 25 crores. 
• Even the funding of Rs. 10 Lakhs to Rs. 1 crore might fall short for a lot of syartups, especially more expensive startups. 

Documents Required to Apply for Stand Up India Scheme

• The fully-filled application form along with passport sized photographs
• Identity evidence: Driver’s license, passport, Aadhaar card, Voter’s ID, or PAN Card
• Residence Proof: Aadhaar card, PAN Card, strength invoice or a phone invoice
• Proof of commercial enterprise deal with
• Deed of partnership
• Copies of the rent settlement of the office space/production unit
• Any additional document required by the bank

How to Register for Stand-up India Loan Scheme? 

Interested applicants must follow the steps given below carefully to register for the Stand Up India Scheme:

• Step 1: Go to the official website www.standupmitra.in/Home/SUISchemes
• Step 2: Download the Registration Form and take a print out. 
• Step 3: Fill in the mandatory details like your name, address, contact information, etc. 
• Step 4: If the promoter is a woman, she must possess a minimum of 51% of the total stakes. 
• Step 5: The applicant can then choose special options from the drop-down menu like the industry they wish to work for, etc. 
• Step 6: Applicants must provide prior information about their business and it’s future plans. 
• Step 7: Check all the details and then click on the Register Now button to finish the registration process. 

Apply Online for Standup India Loan Scheme

Applicants who are eligible and wish to apply for the Stand-up India Scheme must go to the nearest Bank to them and ask if they are associated with the Standup India Scheme. 

If the Bank confirms, you can then ask for the offline application form and carefully fill in all the details. Once the form is fuly filled, submit it to the Bank branch and wait for any updates regarding the selection process. 

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