Stand Up India Loan Scheme 2024: Apply Online, Eligibility, Interest Rate

Stand Up India Loan Scheme 2024

Stand Up India Loan Scheme:- The Indian government has been assisting its citizens in bringing in new enterprises through a variety of plans and projects. The Stand-Up India programme is one such initiative that aims to empower marginalised groups, including women, scheduled castes, and scheduled tribes. During the last seven years, the Stand-Up India Scheme has lent more than Rs. 40,700 crore to over 1,80,630 accounts.  Read below to check the detailed information related to Stand Up India Loan Scheme.

Stand Up India Loan Scheme 2024

The Department of Financial Services (DFS), Ministry of Finance, Government of India, is in charge of carrying out the programme. The scheme’s nodal agency is the Small Industries Development Bank of India (SIDBI). The programme includes trading as well as industrial and service industry activities. The businesses may take the shape of a cooperative society, partnership, firm, or sole proprietorship. The programme also includes activities related to farming.

Under the Stand-Up India Scheme, bank loans ranging from Rs. 10 lakh to Rs. 1 crore are available to women and members of Scheduled Castes (SC) or Scheduled Tribes per bank branch for the establishment of greenfield businesses. In the event of the non-individual firm, at least 51% of the shares and controlling ownership shall be held by a woman borrower or a member of the SC/ST.

Agriculture Infrastructure Fund Scheme

Stand Up India Loan Scheme Details in Highlights

NameStand Up India Loan Scheme
Interest RateBank’s MCLR + 3% + Tenor Premium
Loan AmountRs. 10 lakh to Rs. 1 crore
Loans Offered ForOnly Green Field Projects
Working Capital LimitUp to Rs. 10 lakh in the form of Cash Credit limit
Minimum Age18 years for ST/SC and Women Entrepreneurs
Repayment TenureMaximum 7 years with a Moratorium Period of up to 18 months
MarginMaximum 15%
Shareholding or Controlling Stake51% for Non-Individual Enterprises
Borrower’s Financial Repayment StatusMust not have defaulted to any bank or NBFC

Stand Up India Loan Scheme Objectives

An effort by the Indian government called Stand-Up India seeks to encourage women’s communities and scheduled caste (SC) and scheduled tribe (ST) members to start their businesses. Prime Minister Narendra Modi introduced the programme on April 5, 2016. The aim is to enable a minimum of one SC/ST and one woman borrower per bank branch, to obtain bank loans ranging from Rs. 10 lakh to Rs. 1 crore, for the establishment of greenfield enterprises. Moreover, the programme offers aspiring entrepreneurs hand-holding support, training, coaching, and guidance via the Stand-Up India Portal, an online platform.

Features & Benefits of Stand Up India Loan Scheme

Some of the key features and benefits of the Stand Up India Loan Scheme are as follows:

  • The project cost may be up to 75% covered under the plan.
  • Term and working capital loans are both included in the composite loan offered by the Stand-Up India programme.
  • Under the programme, the lowest interest rate that the bank will offer in that category—well within (base rate * MCLR + 3% + tenor premium)—is guaranteed.
  • You have seven years to repay the loan. Additionally, a moratorium of up to 18 months is provided by the system.
  • In addition to the principal security, you may use collateral or the Credit Guarantee Fund Scheme for Stand-Up India Loans guarantee to obtain the loan (CGFSIL). This is decided by the lender.
  • The loan amount up to Rs. 10 lakh would be approved through an overdraft. To easily access the funds, a RuPay debit card will be provided. Any loan amount over Rs. 10 lakh will be approved as a cash credit limit.

Startup India Seed Fund Scheme

Interest Rates for Stand-Up Loans in India

According to their internal policies, the participating banks set the interest rates for the loans made available under the Stand-Up India programme. The interest rate, however, cannot go above the bank’s lowest applicable rate for that category (MCLR + 3% + tenure premium). The credit rating, risk profile, collateral security, and other variables may all affect the interest rate. According to information on the Stand-Up India Portal as of September 21, 2023, loans approved under the programme had an average interest rate of 9.67%.

List of Bank’s under Stand Up India Loan Scheme

The List of Bank’s that offer loans under the Stand Up India Loan Scheme is given in the table below:

Axis BankBank of India
Bank of BarodaIndian Overseas Bank
Bank of MaharashtraJammu & Kashmir Bank Ltd
ICICI BankIndian Bank
PNB BankPunjab and Sind Bank
Canara BankUCO Bank
Central Bank of IndiaState Bank of India
IDBI BankUnion Bank of India

Eligibility Criteria for Stand Up India Loan Scheme

The applicants applying for the Stand Up India Loan Scheme must fulfil the following eligibility criteria:

  • The scheme’s benefits are exclusively available to women entrepreneurs and SC/ST individuals.
  • The candidate must be above eighteen years.
  • The loan scheme is only open to greenfield projects.
  • Women entrepreneurs or members of SC/ST groups must own at least 51% of the company’s shares and controlling holdings.
  • Applications for the scheme may also be submitted by non-individuals, such as current businesses and firms.
  • At no bank or financial institution should the borrower have gone into default.
Required Documents

Some of the important documents required for the Stand Up India Loan Scheme are as follows:

  • Application form with Passport-sized photographs
  • Identity Proof like a Passport, voter’s ID card, PAN card, driving license,  etc.
  • Address Proof like Voter’s ID card, latest electricity bill,  passport, telephone bills, etc.
  • Address proof of Business
  • Partnership deed
  • Lease deeds or Rent agreement
  • Association’s Last 3 years’ balance sheets
  • Promoters and Guarantors Assets and liabilities statement

Government Schemes for Women Entrepreneurs

Process to Register for Stand Up India Loan Scheme 2024

 To Register for Stand Up India Scheme, the user needs to follow the below-given steps:

  • First of all, go to the official website of Stand-up India i.e.,
  • The homepage will open
  • Click on the Register button
  • The registration form will open on your screen
  • Now, fill in the form with all the required details like state, district, business address, village, city, town, pin code, etc
  • After that, Select if the promoter is a woman and possesses a 51% or greater interest. The same goes for the SC/ST group.
  • Then, select the nature of the business planned, the nature and description of business activity, desired loan amount, status of space for the business, etc
  • Proceed further and mention your past business experience like business activity, years of experience, nature of business, etc
  • Now, select the desired handholding support now, based on your needs and preferences.
  • After that, enter your personal details like name, enterprise name, user name, mobile number, email id, constitution type, etc
  • Then, click on the register button to complete the process
  • Finally, after successful registration, the concerned officials will contact you for further formalities.

FAQ’s

What kind of funding is provided by Stand Up India?

To meet the needs of diverse businesses, Stand Up India offers loans with adjustable loan amounts, low-interest rates, and flexible repayment durations.

Is Stand-Up India eligible for any subsidies?

No, this scheme does not offer any subsidies. Attractive interest rates are available on loans covering up to 75% of the project cost from scheduled commercial banks, as well as private and public sector institutions.

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