Stand Up India
Eligibility for Stand Up India Loan Scheme:
In order to be eligible for obtaining a loan under the Stand Up India Loan scheme, an individual must comply with the following eligibility criteria:
- The individual must be above 18 years of age.
- The entrepreneur must either be a woman or belong to the SC or ST community.
- Loans will be provided under this scheme only for funding green field projects, which implies that the venture is the very first one ever being undertaken by the applicant under the trade, services or manufacturing sector.
- If the loan is being taken for a non-individual enterprise, then it is compulsory that a minimum of 51% of the shareholding / controlling stake be held by a woman, SC or ST entrepreneur.
- The loan applicant must not be an existing defaulter to any bank or financial organization.
Loan details:
- Nature of Loan – The loan provided under this scheme is a composite loan which includes a term loan and the working capital.
- Availability of Scheme – This scheme will be provided by all Scheduled commercial bank branches and can be accessed either directly at the bank branch, via SIDBI’s Stand Up India portal or via the Lead District Manager.
- Purpose of Loan– The loan will be provided to any woman, SC or ST entrepreneur who is undertaking a venture for the first time under the services, trading or manufacturing sector.
- Size of Loan-The loans provided under this scheme will range between the amounts of Rs 10 lakh and up to Rs 1 crore. The composite loan amount will cover 75% of the cost of the project. This includes the amount of working capital and the term loan. However, the condition that the loan shall cover 75% of the cost of the project will not be applicable in case the contribution of the borrower, along with financial support being provided from any other scheme amounts to more than 25% of the overall cost of the project.
- Interest Rate– The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
- Security– Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
- Repayment– The loan is repayable in 7 years with a maximum moratorium period of 18 months.
- Working Capital– For withdrawal of Working capital up to 10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower. If the working capital required is above Rs. 10 lakh, the same will be provided by cash credit limit.
- Margin Money– The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.
Banks List:
| Allahabad Bank | State Bank of India |
| Andhra Bank | UCO Bank |
| Axis Bank | Union Bank of India |
| Bank of Baroda | United Bank of India |
| Bank of India | Oriental Bank of Commerce |
| Canara Bank | Yes Bank Ltd. |
| Central Bank of India | Indian Overseas Bank |
| Corporation Bank | RRB Karnataka GB |
| Bank of Baroda | South India Bank |
| ICICI Bank | The Karur Vysya Bank Ltd |
| IDBI Bank | City Union Bank |
| Indian Bank | Punjab National Bank |