Stand-Up India: Apply Online For Business Loan | Government Scheme.

A scheme by the Ministry of Finance for financing SC/ST and/or Women Entrepreneurs by facilitating bank loans for setting up a greenfield project enterprise in manufacturing, services, trading sector and activities allied to agriculture.

Motive of The Stand-UP India

• To facilitate bank loans to SC/ST and Women Entrepreneurs for setting up Greenfield Projects. Green Field signifies, in this context, the first-time venture of the beneficiary.
• Composite loans (inclusive of term loan and working capital loan) between 10lakh to 1 crore.
• Tenure of the loans is 7 years including a maximum moratorium period of 18 months.

Features of the Stand-up India Scheme

• The Stand-Up IndiaScheme provide collateral-free loans to the applicants.
• The scheme known as the Credit Guarantee Scheme Stand Up India (CGSSI) was notified in April 2016 and shall be channelized through the National Credit Guarantee Trustee Company as mentioned in the scheme guidelines.
• The Scheme envisages 15% margin money which can be provided in convergence with eligible Central/State Schemes. However, The borrower shall be required to bring in a minimum of 10% of the project cost as their contribution.
• Facilitation of composite loans between Rs.10 Lakhs and Rs.100 Lakhs. Rupay debit card to be issued for the convenience of the borrower.
• The web portal by SIDBI provides hand-holding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filing, work shed/utility support services, subsidy schemes etc.

Key Elements

1. CGF: Credit Guarantee fund for enterprise.
2. Bank Loans: The scheme facilitates bank loans between Rs.10 lakh and Rs.1 crore.
3. Size of Loan: Loan up to 85% of project cost inclusive of term loan and working capital.
4. Purpose of Loan: For manufacturing, services, agri-failed activities or trading sector.
5. Greenfield Enterprise: Loans for setting up a greenfield enterprise.

Unit	Specification
Loan Quantum	Composite loans above Rs.10 lakh and up to Rs.100 lakh. (inclusive of term loan and working capital).
Margin	The scheme envisages 15% margin money which can be provided in convergence with eligible Central/state schemes.
Repayment	The loan is repayable in 7 years with a maximum moratorium period of 18 months.
ROI	EBLR + 3.25% (9.15% + 3.25% = 12.40% with effect from 15.02.2023)
Int Subvention	NIL
Credit Guarantee	CGSSI – Max of 80%

Eligibility Criteria

Applicants who are eligible for the Stand-UP India Scheme:

• The age of the applicant must be 18 years.
• Applicant must belong to SC/ST category and Women Entrepreneurs.
• Enterprises may be manufacturing, services, agri-allied or the trading sector.
• In the case of non-individuals, at least 51% of the shareholding and controlling state should be held by either an SC/ST or Women Entrepreneurs.
• The applicant must not be in default to any bank/financial institution.

Documents Required

For cases exposure up to Rs.25 lakhs:

1. Proof of Identity: Voter’s ID Card/Passport/Driving License/PAN Card/Signature identification from present bankers of the proprietor, partner or director (In case of a company).
2. Proof of Residence: Recent telephone bills, electricity bill, property tax receipt/passport/Voter’s ID card or proprietor, partner of director (In case of a company).
3. Proof of Business Address.
4. Proof that the applicant is not a defaulter in any Bank/Financial Institution (NDC/NOC).
5. Memorandum and articles of association of the Company/Partnership Ded of Partners etc.
6. Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
7. Rent agreement (In case business premises are on rent) and clearance from the pollution control board if applicable.
8. SSI/MSME registration (if applicable).
9. Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of a term loan.
10. Photocopies of lease deeds/title deeds of all the properties being offered as primary and collateral securities.
11. Documents to establish whether the applicant belongs to the SC/ST Category, wherever applicable.
12. Certificate of incorporation from ROC to establish whether majority stakeholding in the company is in the hands of a person who belongs to the SC/ST/Woman category.

For cases with exposure above Rs.25 lakhs:

1. Profile of the unit (includes names of promoters, and other directors in the company), the activity being undertaken addresses of all offices and plants, shareholding pattern etc.
2. Last three years’ balance sheets of the Associates/Group Companies (if any).
3. Project report (for the proposed project if term machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details lie capacity of machines, the capacity of utilization assumed, production, sales, projected profit and loss and balance sheets for the tenor of the loan, the details of labour, staff to be hired, the basis of assumption of such financial details etc.
4. Manufacturing process if applicable, major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company’s strengths and weaknesses as compared to their competitors etc.

Also Read This: PM Svanidhi: Avail the Collateral-Free Loan Under the Government Street Vendor Scheme.

Application Process

1. Visit the official portal of Stand-UP India: Official Portal.
2. Enter the full details of the business location.
3. Select the category between SC/STWomen Entrepreneurs and whether the stake held is 51% or higher.
4. Select the nature of the proposed business.
5. Populate the fields with past business experience, including tenure.
6. Select the need for hand-holding is required.
7. Enter all the personal details sought, which include the name of the enterprise and the constitution.
8. The last step is to select the register button to complete the process.

Loan Disbursement

1. User Registration: The scheme is available for all SC/ST and Women Entrepreneurs.
2. Application: Select Loan Application/Handholding Request Application.
3. Submit: Fill out the form, review the summary & submit the application.
4. Processing: The Bank picks up applications from the marketplace for review/processing.
5. Sanction: The loan is Sanctioned & sent for disbursement.

Statistics

Unit	Specification
Total Applications	283619
Total Amount	66297.89 Cr
Sanctioned Applications	259839
Sanctioned Amount	58676.57 Cr
Handholding Agencies	24613
HHA Request	4590
Lenders onboarded	79
Branches Connected	148083

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FAQs

References 

https://www.jansamarth.in/stand-up-india-scheme_pl

https://www.standupmitra.in/

https://www.myscheme.gov.in/schemes/sui