India’s entrepreneurial scene is buzzing with new ideas led by visionary entrepreneurs turning concepts into successful businesses. In this exciting environment, the Stand Up India Scheme stands out as a key support system for entrepreneurs. It provides financial help and guidance to make their dreams come true.
This government business loan scheme is designed to support women and marginalized communities, promoting inclusivity in the business world. Its impact is significant, from creating jobs to boosting economic growth and social change, showing that a strong economy needs everyone involved, without biases or obstacles.
For upcoming entrepreneurs, the Stand Up India Scheme is a crucial opportunity to build our future and contribute to the economy. Let’s dive into how this initiative is fostering entrepreneurship from the ground up.
What is the Stand Up India Scheme?
The Stand Up India Scheme is designed to encourage entrepreneurship among women and Scheduled Castes (SC) and Tribes (ST). Initiated by the Department of Financial Services (DFS) under the Ministry of Finance, Government of India, this business loan scheme provides bank loans starting from ₹10 lakh to ₹1 Crore.
Each bank branch offers loans to one woman and one SC/ST borrower to help them start new businesses in manufacturing, services, or trading.
For businesses owned by multiple people, at least 51% of the ownership and control must be held by either an SC/ST or a woman entrepreneur. The Stand Up India Scheme is a key initiative to support and empower underrepresented groups in the business world.
Features of Stand Up India Scheme
Facilitating fast and hassle-free loans, there are stipulated features of the scheme that are essential for banks to abide by. Here are the main features of the Stand Up India Scheme, a key government business loan scheme:
- Type of Loan – Loans can include both working capital and term loans.
- Amount – Loan amounts range from ₹10 lakh to ₹1 crore.
- Loan Coverage – Composite loans can cover up to 85% of the project cost, except when the borrower’s contribution exceeds 15%.
- Rate of Interest – Interest rates are kept low, not exceeding the base rate/MCLR + 3% + tenor premium.
- Terms of Repayment – Repayment terms are up to seven years, with a maximum moratorium period of 18 months.
- Working Capital Allowance- Working capital up to ₹10 lakh is provided via an overdraft; higher amounts through cash credit.
- Margin Money – Eligible central or state government schemes can provide 15% margin money, with the borrower contributing at least 10% of the project cost.
Furthermore, All scheduled commercial bank branches must provide loans to one woman borrower and one SC/ST borrower each under the Stand Up India Scheme. These features are indicative of the government’s endeavors to promote entrepreneurship by creating a trickle-down effect.
Eligibility Criteria of Stand Up India Scheme
There are some eligibility criteria that you would need to fulfill to avail of this government business loan scheme. This section will take you through the criteria.
- The scheme is available to SC/ST and/or women borrowers.
- You must be above 18 years of age.
- It applies only to greenfield projects, meaning it must be the first business venture of the beneficiary in manufacturing, services, trading, or agri-related sectors.
- For non-proprietary businesses, at least 51% of the shares and control must be held by an SC/ST or woman entrepreneur.
- Make sure you have a clean credit history with no defaults from any banks or financial institutions.
Benefits of the Stand Up India Scheme
The Stand Up India Scheme is the government’s heartfelt attempt to make entrepreneurship a shared and inclusive space. Amidst the pre-existing social welfare schemes, incorporating a new government business loan scheme has helped uplift the economic and financial status of marginalized communities.
By facilitating loans to women and SC/ST individuals, banks are helping them convert their dreams into reality. There are several benefits of the Stand Up India Scheme. Take a look at some of these benefits closely:
- It supports entrepreneurs from traditionally sidelined sections of society, including women and SC/ST communities.
- It covers a significant portion of the project cost, reducing financial pressure on entrepreneurs.
- Loans can be easily availed online through the scheme’s portal, which also guides setting up the business, training, and the loan application process.
List of Documents Required
You need some basic essential documents to apply to avail of the loan under the Stand Up India Scheme. You can apply for this loan through your bank to kickstart a fast digital loan application by submitting these documents:
- The application form that you filled out online/offline
- Passport-size photographs
- Any Identity Proof- Driver’s license, Aadhaar card, Voter ID card, PAN card
- Lastly, make sure to submit copies of your Memorandum of Association, business location proof, rent agreement, and last 3 years balance sheet.
Supporting Entrepreneurship With Stand Up India Scheme
Boosting a country’s economy is not just dependent on financial factors. Social welfare also plays a huge part in maximizing the economy’s potential. With schemes like the Stand Up India scheme, women and people from the SC/ST community can dream without any hindrances.
HDFC Bank is committed to supporting entrepreneurship through the Stand Up India Scheme, a vital government business loan scheme. By fostering a supportive environment, HDFC Bank plays a crucial role in helping marginalized groups access financial help and providing sufficient assistance.
Their constant customer service, which helps its customers simplify the digital loan application and document submission process, is a huge relief. Apply for the scheme via HDFC Bank and get personal assistance with a click!
