How to Apply for Stand-Up India Scheme? Step- by- Step Guide

The Stand-Up India Scheme provides bank loans ranging from 10 lakh to 1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch for the establishment of a business. This company could be involved in manufacturing, services, agriculture, or trading. In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by a SC/ST or woman entrepreneur. let's learn the full procedure of applying for stand-up India scheme.

Eligibility

• SC/ST or female entrepreneurs over the age of 18 are eligible.
• Loans under the scheme are only available for greenfield projects. In this context, green field refers to the beneficiary's first venture in the manufacturing, services, agri-allied activities, or trading sector.
• In the case of non-individual enterprises, either SC/ST or a woman entrepreneur should hold 51% of the shareholding and controlling stake.
• Borrowers must not have any outstanding debts with any bank or financial institution.

Interest rates on loan-

The interest rate would be the bank's lowest applicable rate for that category (rating category), not to exceed (base rate (MCLR) + 3%+ tenor premium).

How to apply for Stand Up India Scheme

• The stand-up India Portal provides potential borrowers with information on various types of hand holding assistance from various agencies, as well as a channel to contact banks in order to obtain loans.
• On the portal's Registration page, the applicant first clicks "Register" and answers a few short questions.
• Based on the response the candidate will be considered as a "Trainee or Ready Borrower". The applicant will also be informed of his or her eligibility for a stand-up India loan.
• A trainee borrower/ready borrower may then register and log in via the portal.
• The borrower is taken to a dashboard after logging into the portal.

Required Documents

• Fill out the Application form with Passport-sized photographs
• ID Proof like Passport, driving licence, etc.
• Residential Proof such as Voter's ID card, passport,etc..
• Partnership deed
• Rent agreement
• Balance sheet of last 3 years
• Statement of Assets and liabilities
• Other documents by bank

Repayment of loan

The loan has a 7-year repayment period with a maximum moratorium period of 18 months.