Stand Up India Scheme

• Loans are only granted to applicants who are setting up a business for the first time in either the trading, manufacturing or agri-allied sectors of India

• Through the scheme, applicants can avail funding of up to 85% of the project cost

• Loans granted under the scheme can be secured with the help of a guarantor or by offering a collateral/security, subject to the rules of the lender

• Loans can be repaid by borrowers over 7 years and are entitled to a moratorium period of up to 18 months

• Institutions like SIDBI (Small Industries Development Bank of India) and DICCI (Dalit Indian Chamber of Commerce and Industry) regulate the Stand-Up India loan scheme

• Provision of the RuPay debit card allows beneficiaries to withdraw funds with ease

• Eligible borrowers can access working capital of up to ₹10 Lakhs via overdraft facilities and amounts over this as a cash credit limit

• Banks or lending institutions will check the credit history of the borrower and ensure that funds are not utilised for personal purposes

• Comprehensive support for borrowers is also offered in the form of a pre-loan training facility

• Web portal aids in providing support services and online registration facilities to borrowers.

Note that the funding is supposed to be used for setting up the ventures and fulfilling initial working capital requirements. 

Here is an overview of the Stand-Up India scheme’s advantages:

• Helps minimise unemployment by motivating new entrepreneurs to establish new start-ups

• Enables budding entrepreneurs to set up enterprises by easing legal, operational and institutional formalities

• Provides the necessary funding to SC, ST and female entrepreneurs to help them set up their business easily

• Assists borrowers throughout the pre-loan stage until the operating phase

• Offers a longer repayment tenure of up to 7 years to pay off the borrowed amount with a moratorium to aid this process

• You must have a credible repayment history and not be a loan defaulter
  

• Around 51% of the controlling stake of a non-individual enterprise must be held by a woman, ST or SC borrower

• You must avail the scheme only when you are establishing your business in services, manufacturing, trading or agriculture-related sectors for the first time

• Provide business details, such as the nature of your business, the sector it belongs to and the loan amount you want to borrow
  

• Select if you need handholding support of any kind 

• Fill in your personal details, such as your name, the name of your business and the username you desire

• Click the ‘Submit’ button to complete the process

• Wait for relevant officials to reach out to you to explain the process further

Alternatively, you can apply for a loan under the Stand-Up India business loan scheme through the offline route. You can visit the nearest lender’s branch to check if they provide loans under the Stand-Up India scheme. 

If yes, you can fill up the application form, attach the required documents and submit it to the concerned officials.

• Residence Proof: Aadhaar card, PAN Card, electricity bill or a phone bill
  

• Proof of business address

• Deed of partnership (if available)

• Copies of the lease deed or rent agreement of the office space/manufacturing unit

• Any other document as per the requirements of the bank