Stand-Up India Loan

What is the Stand-Up India Loan ?

The Stand-Up India Scheme was launched by the Government of India in April 2016 to promote entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and women. The scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

Key Features of Stand-Up India Loan

1. Loan Amount:   Provides loans ranging from ₹10 lakh to ₹1 crore for setting up new enterprises in the manufacturing, services, or trading sectors.


2. Inclusive Financing:   Targets SC, ST, and women entrepreneurs to foster an inclusive entrepreneurial ecosystem.


3. Greenfield Enterprises:   Specifically designed for new enterprises, meaning the first-time venture of the beneficiary in the trading, manufacturing, or services sector.


4. Composite Loan:   Includes both term loans and working capital, making it comprehensive for various business needs.


5. Credit Guarantee:   Covered by the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), reducing the risk for lenders.

Objectives of Stand-Up India Loan

1. Promote Entrepreneurship:   Encourage SC, ST, and women to start new businesses and contribute to economic growth.


2. Economic Empowerment:   Empower marginalized sections of society by providing access to financial resources and support.


3. Job Creation:   Generate employment opportunities through the establishment of new enterprises.


4. Inclusive Growth:   Ensure inclusive growth by fostering diversity in the entrepreneurial landscape.

Eligibility Criteria

1. Beneficiary Category:   SC/ST or women entrepreneurs above 18 years of age.


2. Business Type:   The loan is for greenfield projects, meaning the first venture of the beneficiary in the trading, manufacturing, or services sector.


3. Ownership:   In the case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by an SC/ST or woman entrepreneur.


4. Location:   The enterprise can be located in any part of India.

Required Documents for Stand-Up India Loan Application

1. Identity Proof:   Aadhaar Card, Voter ID, Passport, or any other valid ID proof of the applicant.


2. Address Proof:   Utility bills, rental agreement, or any other valid address proof.


3. Caste Certificate:   Caste certificate for SC/ST applicants.


4. Business Plan:   Detailed business plan including the project report, financial projections, and market analysis.


5. Bank Statements:   Bank account statements for the last 6 months.


6. Income Tax Returns:   Income tax returns of the applicant for the last 2-3 years, if applicable.


7. Relevant Licenses:   Any licenses or permits required for the business.

Benefits of Stand-Up India Loan

1. Access to Capital:   Provides crucial financial support to SC, ST, and women entrepreneurs for starting new ventures.


2. Credit Guarantee:   Reduces risk for lenders with the support of the Credit Guarantee Fund Scheme.


3. Holistic Support   Offers composite loans covering both term loans and working capital requirements.


4. Encourages Diversity:   Promotes diversity in entrepreneurship by focusing on marginalized sections of society.


5. Economic Development:   Contributes to overall economic development through the establishment of new businesses and job creation.

Conclusion

The Stand-Up India Scheme is a pivotal initiative aimed at empowering SC, ST, and women entrepreneurs by providing them with the necessary financial support to start their own businesses. This inclusive financing scheme fosters economic growth and job creation, promoting diversity in the entrepreneurial ecosystem. For detailed assistance with the Stand-Up India loan application process, contact ATHWISE Services Private Limited. Our expert consultancy team can guide you through the documentation and application process efficiently.

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