The Stand-Up India Scheme is a pioneering initiative by the Government of India, designed to foster entrepreneurship among women and members of Scheduled Castes (SC) and Scheduled Tribes (ST). Launched by the Department of Financial Services (DFS) under the Ministry of Finance, this scheme aims to provide financial support to these groups, encouraging them to start their own enterprises and thereby promoting economic inclusion and social empowerment.

Objectives and Scope

The primary objective of the Stand-Up India Scheme is to facilitate bank loans ranging from Rs. 10 lakh to Rs. 1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch. These loans are intended for setting up new enterprises, known as greenfield projects, in the manufacturing, services, or trading sectors. A greenfield project signifies the first venture of the beneficiary in these sectors. For non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by an SC/ST or woman entrepreneur.

Eligibility Criteria

To be eligible for a loan under the Stand-Up India Scheme, applicants must meet the following criteria:

• SC/ST and/or woman entrepreneurs aged 18 years and above.
• The loan must be for a greenfield project, meaning the first-time venture of the applicant in the specified sectors.
• For non-individual enterprises, a minimum of 51% of the shareholding and controlling stake should be held by SC/ST and/or women entrepreneurs.
• The borrower should not be in default to any bank or financial institution.

Loan Details

The loans under this scheme are composite loans, inclusive of term loans and working capital, ranging between Rs. 10 lakh and Rs. 1 crore. These loans are intended to cover up to 75% of the project cost, although this stipulation does not apply if the borrower’s contribution, along with support from other schemes, exceeds 25% of the project cost. The interest rate for these loans is the lowest applicable rate of the bank for that category, not exceeding the base rate (MCLR) plus 3% and a tenor premium.

The loan repayment period is up to 7 years, with a maximum moratorium period of 18 months. For working capital up to Rs. 10 lakh, an overdraft facility is provided, and a Rupay debit card is issued for the borrower’s convenience. For working capital above Rs. 10 lakh, a Cash Credit limit is sanctioned.

Security and Margin Money

The loans can be secured by collateral security or the guarantee of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), as decided by the banks. The scheme envisages up to 15% margin money, which can be provided in convergence with eligible central or state schemes. However, the borrower must bring in a minimum of 10% of the project cost as their contribution.

Application Process

Potential borrowers can apply for loans under the Stand-Up India Scheme in three ways:

1. Directly at the bank branch.
2. Through the Stand-Up India portal (www.standupmitra.in).
3. Through the Lead District Manager (LDM).

Required Documentation

Applicants need to provide various documents, including:

• Proof of identity (Voter’s ID, Passport, Driving License, PAN Card).
• Proof of residence (recent utility bills, property tax receipt, Passport, Voter’s ID).
• Proof of business address.
• Memorandum and articles of association of the company or partnership deed.
• Assets and liabilities statements of promoters and guarantors.
• Rent agreement (if applicable) and clearance from the pollution control board.
• SSI/MSME registration (if applicable).
• Projected balance sheets.
• Copies of lease/title deeds of properties offered as security.
• Documents establishing SC/ST status or woman ownership.
• Certificate of incorporation from ROC (for non-individual enterprises).

For loans exceeding Rs. 25 lakh, additional documentation is required, including:

• A profile of the unit, including details of promoters, directors, business activities, and shareholding patterns.
• Last three years’ balance sheets of associate/group companies (if any).
• A detailed project report.

Handholding Support

The Stand-Up India Scheme also provides handholding support for borrowers needing assistance with financial training, skill development, or project preparation. This support is coordinated through Stand-Up Connect Centres (SUCC) managed by SIDBI and NABARD, which offer various services, including:

• Financial training at Financial Literacy Centers (FLCs).
• Skill development at vocational training centers (VTPs) and other centers.
• Entrepreneurial development programs (EDPs) at MSME DIs, District Industries Centers (DICs), and Rural Self Employment Training Institutes (RSETIs).
• Assistance with securing utility connections and preparing detailed project reports (DPRs).

Monitoring and Support

The Lead District Manager (LDM) monitors the application process, working closely with local offices of SIDBI and NABARD to resolve any issues and facilitate smooth processing. The LDM sensitizes bank branches about potential applicants and ensures follow-up with concerned officials. The SUCCs provide ongoing support to borrowers even after loan sanction, ensuring that the required handholding and mentoring continue throughout the entrepreneurial journey.

Conclusion

The Stand-Up India Scheme is a comprehensive initiative aimed at promoting entrepreneurship among women and marginalized communities. By providing financial support, training, and mentoring, the scheme seeks to create a more inclusive economic environment, empowering SC/ST and women entrepreneurs to establish and grow their businesses. This initiative not only helps in fostering economic development but also contributes to social equity by enabling underrepresented groups to participate in and benefit from the economic growth of the country.

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