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Stand Up India Loan Scheme Key Apply, Features, Eligibility Criteria

The Indian government's flagship scheme, the Stand Up India Loan scheme, aims to empower entrepreneurs from underprivileged communities by providing collateral-free loans and handholding support. Launched in 2016, this scheme offers loans of 10 lakhs to 1 crore to Dalits, adivasis, and women. It fosters entrepreneurship and generates employment. The scheme provides financial assistance and promotes inclusive growth. Banks like SBI, Axis Bank, and ICICI offer Stand Up India loans. Here is a detailed look at the scheme - its features, benefits, eligibility, application process and challenges.

 Stand Up India Loan Scheme

About the Scheme

The Stand Up India scheme was launched on 5 April 2016 by Prime Minister Narendra Modi. This initiative aims to support entrepreneurship among Scheduled Castes (SCs), Scheduled Tribes (STs), and women. It offers loans from 10 lakhs to 1 crore to at least one SC/ST and one woman entrepreneur per bank branch. The goal is to empower these communities financially and help them start sustainable businesses across manufacturing, services, and trading sectors.
Key Highlights Details
Launched By Government of India
Scheme Name Stand Up India Scheme
Objective Offer loans to entrepreneurs
Benefits Loans for business setup
Eligibility Indian citizen
Beneficiaries SC, ST, Women
Website www.standupmitra.in

The scheme aims to empower marginalized sections and promote inclusive growth through entrepreneurship.

Features of Stand Up India Scheme

Some key features of the Stand Up India scheme are:
  • Targets SC/ST and women entrepreneurs
  • Provides loans from 10 lakhs to 1 crore
  • Offers composite loan - term loan plus working capital
  • Lower interest rates compared to market rates
  • Loans provided without collateral
  • Support for credit history and training provided
  • Implemented through Scheduled Commercial Banks
These features make the scheme beneficial for first-time SC/ST and women entrepreneurs starting new ventures.

Benefits of the Scheme

The Stand Up India scheme offers several benefits like:
  • Promotes new businesses and reduces unemployment
  • Provides expert guidance and handholding support
  • Offers 7 years for loan repayment with flexible options
  • Eliminates barriers for entrepreneurs
  • Boosts socio-economic empowerment
  • Encourages financial inclusion
By supporting entrepreneurs with loans and assistance, the scheme delivers social and economic benefits.

Eligibility Criteria

To be eligible for Stand Up India loans, applicants must fulfil criteria like:
  • Minimum age 18 years
  • Business entity must be a LLP or partnership firm
  • Turnover less than 25 crores
  • Women applicant for each SC/ST applicant
  • New greenfield project in manufacturing or services
  • Should not be a defaulter
Meeting these parameters makes one eligible to apply for loans up to 1 crore under the scheme.

Application Process

To apply for Stand Up India loans, follow these steps:
  • Visit nearest bank branch participating in the scheme
  • Check for quota - 1 SC/ST and 1 women entrepreneur
  • Collect and fill application form
  • Attach required documents
  • Submit form at branch
  • Representative will contact regarding process
One can also register online on the portal www.standupmitra.in and then apply at the bank.

Conclusion

The Stand Up India scheme enables entrepreneurship among marginalized communities by offering collateral-free loans of 10 lakhs to 1 crore along with support. It promotes inclusion and self-reliance. However, promoting awareness about the scheme is vital for its success. Overall, it holds huge potential for economic empowerment if implemented effectively.

FAQ:

Q1: What is the Stand Up India scheme? A1: The Stand Up India scheme offers collateral-free loans of 10 lakhs to 1 crore to SC, ST and women entrepreneurs to help them start new businesses. 

Q2: Who gives Stand Up India loans? A2: Loans under the Stand Up India scheme are provided by Scheduled Commercial Banks like SBI, PNB, ICICI Bank etc. 

Q3: What is the interest rate on Stand Up India loans? A3: The interest rate is MCLR (base rate) of the bank + 3% + tenure premium. Rates are lower than usual market rates. 

Q4: What are the documents needed for Stand Up India loan? A4: Documents like ID/address proof, business address proof, partnership deed, lease agreement, application form etc. are required.   

Q5: How to apply for Stand Up India loan? A5: You can apply at the nearest bank branch participating in the scheme. Also register online on www.standupmitra.in portal. 

 Q6: What are the eligibility criteria for Stand Up India scheme? A6: Applicant must be 18+, business turnover under 25 cr, new greenfield project etc. SC/ST and women specific criteria also present.
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