This is a scheme announced by the Narendra Modi led government and extends business finance for some specific sections of the society including SC, ST and women.
As per the website erected for the scheme, the scheme facilitates bank loans between Rs. 10 lakh and Rs. 1 crore to atleast one scheduled caste (SC) or scheduled tribe (ST) borrower and one woman entrepreneur per bank branch for setting up a Greenfield enterprise. The enterprise can be in manufacturing, services or trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
Where to apply for loan under the scheme?
The Department of Financial Services anchored scheme can be accessed at primarily three points:
1. SIDBI's Stand Up India portal or www.standupmitra.in
2. Directly at the bank branch
3. Through the lead district manager
To clarify the scheme does not extends finance to enterprises that have already started their operations.
Banks provide collateral of Credit Guarantee backed loan and can be anything from a commercial vehicle loan to office equipment loan. The loan could be repayable upto 7 years time.
Objectives of the scheme
The Stand Up India scheme aims for creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC)
The Stand Up India scheme extends refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs 10,000 crore
The Stand Up India scheme offers handholding support for borrowers both at the pre loan stage and during operations. Additionally services such as extending familiarity with factoring services, registration on online platforms and e-market places. Also, education forms and support session will be provided to make the entrepreneurs understand best practices and problem solving.
The system aims to capitalize the institutional credit structure and extend the facility to lesser served