The government has been offering a wide range of schemes and programmes to support the citizens of India to bring in new businesses onboard. One such scheme is the Stand-Up India scheme that focuses on strengthening the minorities, such as scheduled castes, scheduled tribes, and women. Do not misunderstand the Stand-Up India scheme with the Startup India scheme. They are two different schemes focussing on different classes of aspirants.
The objective of the Stand-Up India scheme is to provide financing for Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs to realise their business ideas. Under the plan, bank loans ranging from Rs.10 lakh to Rs.1 crore can be obtained. They are mostly first-time ventures which may cover up to 75% of the total project cost and require the entrepreneur to commit to at least 10% of the value.
Initially, it was outlined that at least one SC or ST borrower and at least one woman borrower gets the benefit of the scheme per bank branch to set up a greenfield enterprise in manufacturing, services, or trading sector. Enterprises can also avail the benefits of the scheme given that they satisfy the eligibility criteria.
You can approach one of the three potential points of contacts to know more about the scheme:
Step 1: Visit the Stand-Up India portal at www.standupmitra.in to understand the scheme details better.
Step 2: Click on the ‘Register’ button and answer a set of questions prompted.
Step 3: Based on your response, you will be categorised either as Trainee Borrower or Ready Borrower.
Step 4: Feedback will be given regarding the eligibility of the applicant for the loan.
Step 5: The applicant can then register and login to the portal.
Step 6: Upon logging in successfully, a dashboard will be displayed to the applicant to proceed with further actions.
The applicant will have to answer the following questions at the time of registering on the portal:
Based on the response and details you provide for the set of questions mentioned above, an applicant will be categorised as Trainee Borrower or Ready Borrower.
Trainee Borrower: If you specify that you need support to raise margin money, you will be categorised as a Trainee Borrower on the portal. It will connect the applicant to the Lead District Manager (LDM) of the concerned district of the applicant and the relevant office of NABARD/SIDBI. The concerned officers will then arrange for support as given below:
Ready Borrower: If you specify that you do not need any support to obtain the marginal money, you will be categorised as a Ready Borrower on the portal. Also, the portal will start processing your application for a loan at the bank selected. An application number will be generated, and your details will be shared with the bank, LDM, and relevant office of NABARD/SIDBI. You can track the progress of your application on the portal with your application number.
You can get the benefits of any other scheme along with the Stand-Up India scheme. However, the possibility of receiving financial aid of up to 75% of the total project cost will not apply if you happen to receive convergence support from any other schemes beyond 25% of the total project cost.
Though you happen to arrange up to 25% of the project cost from state/central schemes or subsidies in addition to the Stand-Up India contributions, you are required to bring in a minimum of 10% of the project cost on your own. The scheme involves margin money of 10% from your pocket to gain the benefits of the scheme.
A greenfield enterprise is one where new infrastructure will be built on unused land, i.e. no demolition or remodelling of an existing structure will be involved.
You can avail the support at any time, even after the loan is sanctioned. Get in touch with the Stand-Up Connect Centres to access the services.