How to avail Standup India Scheme Loan

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Standup India Scheme Loan
Standup India Scheme Loan

Do you dream of starting your own business, but the lack of funds and necessary guidance is stopping you? If yes, then the stand-up India scheme of the Government of India is a great way to convert your dreams into reality. The scheme is especially made to make women and Scheduled Castes/Tribes (SC/ST) community entrepreneurs economically empower by giving them Standup India Scheme Loan.

This blog will give you complete information about the Standup India Scheme Loan, such as eligibility, loan amount, application process, necessary documents and more. So, let’s move towards this exciting journey of entrepreneurship!

What is Stand-up India scheme?

Stand-up India is a government scheme aimed at providing loans ranging from Rs 10 lakh to Rs 1 crore to women and SC/ST community entrepreneurs to set up a new enterprise in industry, service, agricultural-related activities or business sector.

Under this scheme, loan is given without guarantee, which also gives an opportunity to start its business without keeping property.

Standup India Loan amount and interest rate

  • The loan amount can be between Rs 10 lakh to Rs 1 crore.
  • The interest rate may vary from bank-by-bank, but usually occur between 5% -10%.
  • 1% interest subsidy is also given by the government.

Standup India Scheme Loan eligibility

  • Scheduled Castes/Scheduled Tribes or Women Entrepreneurs who are more than 18 years of age.
  • Loans under the scheme are available only for green field projects.
  • The Green Field Project means that the beneficiary has never run enterprises in construction, services or business sectors or agriculture related activities before.
  • In the case of non-individual enterprises, 51% shareholding and controller share should be with either SC/ST or female entrepreneurs.
  • The debtor should not be a defaulter of any bank/financial institution.

Required documents

  • Passport Size Photo
  • Identification proof: Aadhar card/ Pan Card
  • Residence proof: Voter ID/ Passport/ Latest power and telephone bills/ Property tax receipt
  • Business address proof: Trade license, Lease photocopy, Rent agreement
  • Company Memorandum of Association
  • Partnership deed
  • Balance sheet of last 3 years
  • Promoter and guarantee assets and liability statements

How to avail Standup India Scheme Loan?

To register for the Stand-up India scheme, you have to follow the following steps:

  1. Go to the official website of Stand-up India: https://www.standupmitra.in/login/register
  2. Fill your name, mobile number and Click Generate OTP.
  3. Now Verify the OTP. And you will reach Stand-up India loan registration page.
  4. In the Registration page, provide information about your business. It should include business address, state, district, village, city, city and pin code.
  5. Specify whether you are a female entrepreneur or Scheduled Caste/Tribe Entrepreneur and have more than 51% stake in your business.
  6. Choose your business plan, nature, loan amount, nature and information of business activity, location position for business and drop down of entrepreneurs for the first time.
  7. Provide information about your previous business experience. This includes commercial activity, business experience and mentioning years of nature.
  8. Tick on “Hand Holding Support” at will.
  9. Provide your personal information. It should include name, enterprise name, user name, mobile number, email etc.
  10. Click on the “Register” button.

After registering, you can apply for the Stand-up India scheme in the respective loan institute. Bank officials will contact you for further formalities.

Apply Link

What are the benefits of Stand-Up India scheme?

Without guarantee loan: You do not need to give any property or guarantee to take a loan under Stand-Up India Scheme. This scheme is a major relief for beginner entrepreneurs.

  • Loan interest rate under the scheme is determined by banks, but it is lower than normal market rates.
  • Loan can be repaid over a period of 5 to 7 years, which gives you enough time to establish and increase your enterprise.
  • Under the scheme you are also provided handholding assistance like training, guidance and support.
  • The biggest advantage is that the loan under the Stand-up India scheme is without any bail. This means that you will not have to mortgage your property near the bank.

Stand-up India scheme is an important initiative of the Government of India which helps in promoting entrepreneurship and creating employment opportunities.

From the loan received under this scheme, women, Scheduled Castes and Scheduled Tribes entrepreneurs can start their own business or expand existing business. With this they can improve their economic and social life.

Also, Read How to Get PMEGP Scheme Loan?

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