Stand Up India Loan Scheme – Key Apply, Features, Eligibility Criteria, Benefits & Challenges

What is the Stand Up India Loan scheme?

The Standup Loan India scheme is a government scheme launched on 5 April 2016. This government initiative is started by PM Modi for the welfare of the people. By offering the loan amount to people, the Stand Up Loan scheme promotes entrepreneurship among SC, ST communities, and women. As it helps people to become financially stable, this scheme has come under the financial inclusion agenda.

Key Highlights of the Stand Up India Scheme

Launched By	India Government
Name of Scheme	Stand Up India Scheme
Objective	To offer loans and financing to small firms
Benefits	Loan for Entrepreneurship
Eligibility Criteria	Must be a resident of India
Beneficiaries	Dalit, SC, ST, Widow Women
Official Website	https://www.standupmitra.in/Login/Register

Aim of the Standup India Scheme

The goal of the Standup India scheme is to provide financing amounts in the form of loans to Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs. Under the plan, financial institution loans starting from Rs.10 lakh to Rs.1 crore may be received. They are first-time ventures, which might also cover up to 75% of the entire cost. It require the entrepreneur to decide to pay at least 10% of the price.

Initially, it was mentioned that at least one SC or ST borrower and, as a minimum, one woman borrower gets the gain of the scheme. According to a bank branch to installation field employer in manufacturing, services, or trading sector. Enterprises can also avail the benefits of the scheme by satisfying their eligibility standards.

Total Applications	204732
Total Amount	Rs. 48042.66 crore
Sanctioned Applications	184206
Sanctioned Amount	Rs. 41465.31 crore
Handholding Agencies	24613
Lenders On-boarded	82
Branches Connected	137238
HHA Requests	3293

List of banks provide Stand Up India Loans

Axis Bank	Indian Bank
Bank of Baroda	Indian Overseas Bank
Bank of India	Jammu & Kashmir Bank Ltd
Bank of Maharashtra	Punjab and Sind Bank
Canara Bank	PNB Bank
Central Bank of India	SBI
ICICI Bank	Union Bank of India
IDIB Bank	Uco Bank

Features of Stand Up India Loan Scheme

The Stand Up India scheme is aligned with the authorities’s agenda. It promoting economic inclusion and entrepreneurship among weaker sections of society. It is designed to empower individuals from SC, ST, and women’s communities by presenting them with vital financial help. Thus, it give them assistance to start and develop their personal organizations. Here are the extensive features of the Stand Up India Loan scheme that make it the best government initiative for people

Target Beneficiaries

The primary beneficiaries of the scheme are women and people belonging to Scheduled Castes (SCs) and Scheduled Tribes (STs). The goal is to support these companies in putting in sustainable firms and becoming entrepreneurs.

Financial Assistance

Under the scheme, bank loans starting from  10 lakhs to 1 crore are offered to eligible beneficiaries. The loans are meant to facilitate the established order of recent corporations in various sectors, which includes manufacturing, trading, and services.

Loan amount

The Stand Up India scheme provide the composite loan that includes both time period loan and working capital. This comprehensive monetary assist is aimed toward supporting entrepreneurs meet the various needs in their commercial enterprise.

Interest Rates

Interest rate for the Stand Up India scheme are usually lower than general market rates, making the loans more low-priced for the beneficiaries.

Loans free from Collateral

The stand up Loan scheme helps entrepreneurs by giving collateral-free loans to encourage individuals to start their businesses.

Provide huge Support

The scheme presents a guide through diverse means, which include credit records of the borrower. It also includes project document training, and undertaking entrepreneurship development applications.

Implementation

Stand Up India Loan scheme is carried out through Scheduled Commercial Banks, and debtors can technique those banks for loans under the scheme.

Standup India Scheme Interest Rates

The Standup India scheme’s interest rate is nominal, lower than the charges in any other case offered via a financial institution. It reduces the overall borrowing value.

Here is a tabular form of the Standup India scheme interest rate and different details.

Interest Rate	MCLR (base) price of the bank + 3% + Tenure Premium
Minimum and Maximum Funding	₹10 Lakhs – ₹1 Crore
Shareholding Criteria	51% in the case of non-person corporations

Benefits of the Stand Up India Scheme

The best thing about the Stand Up India Scheme is that it assists the people by providing loans, economic assistance, and other benefits. Here is a list of all standup loan India scheme benefits

• The first benefit of this scheme is that it aids, inspires, and inspires new business proprietors. Thus, it reduces unemployment.
• If you’re an investor, Stand Up India affords you with an appropriate putting wherein you can acquire qualified recommend, free time, and legal information. They might help you with the begin-up in the course of the first years of your task. That’s every other advantage.
• The experts get assistance after a setup from them as properly.
• Another gain for enterprise proprietors is that they don’t have to fear a whole lot about how to repay the money they borrowed because they have got 7 years to pay off the loan, which eases the compensation on the borrower.
•  However, the borrower may additionally select to pay returned a specific sum of loan amount every year.
• This plan will help in putting off institutional, operational, and other boundaries going through entrepreneurs.
• It might be a massive help in phrases of task boom, resulting in the socio-economic empowerment of Dalits, tribal people, and women.
• It may also provide benefits to beneficiaries through different government projects like “Make in India” and “Skill India.”
• It will support preserving India’s demographic part
• Financial and social inclusion of those social data will result from having access to bank debts and generating education.

Eligibility Criteria

There are eligibility criteria that need to be fulfilled by people who want to apply for this loan scheme.

• The applicant must be 18 years or above
• The agency ought to be a LLP or a partnership firm.
• The turnover of the corporation should no longer be more than 25 crores
• The entrepreneur has to be a woman for someone belonging to the ST or SC category.
• The loan will best be supplied to fund field initiatives, i.e., the challenge ought to be a totally first one being undertaken under the producing or service sector.
• The applicant must not be a financial institution or some other Organisation’s defaulter.
• The business enterprise must be handling any business or revolutionary client goods. An approval of DIPP is also required for the identical.

Documents Required

Here are the documents that applicants should have to apply for stand Up India Loan scheme

• A copy of the duly filled application form alongside the passport-sized photographs
• Identity evidence: Driver’s license, passport, Aadhaar card, Voter’s ID, or PAN Card
• Residence Proof: Aadhaar card, PAN Card, strength invoice or a phone invoice
• Proof of commercial enterprise deal with
• Deed of partnership
• Copies of the rent settlement of the office space/production unit
• Any other document required by the bank

Apply for a Loan under the Stand Up India Scheme

In order to apply for loans under Standup India, candidates must visit the nearest bank department and inquire as to whether or not there is a quota for SC/ST individuals or one women entrepreneur according to the financial institution branch. If so, they will apply for a loan under the Standup India scheme by filling out the application and sending it to the office network. You can download the application form from the Standup India portal or https://www.standupmitra.in/.

How to Register with the Stand Up India Scheme

• Go to the official Standup India internet site at https://www.standupmitra.in/ 
• Download the registration form and take print of it. Complete the registration form by first entering the crucial information, along with your country, district, city, city, village, and pin code.
• Please suggest if the promoter is a girl and possesses a 51% or more stake. The same goes for the SC/ST category.
• The applicant can then choose from a drop-down list of first-time marketers the type of enterprise they intend to start, the amount of loan they would really like to get, the kind and description of their enterprise activity, and the reputation in their space.
• In addition, they need to talk about previous business experience by sort of business, years of experience, and commercial enterprise activity.
• The next step is to test the choice that top suits your needs and interest for handholding help.
• The applicant’s personal information includes the name of the commercial enterprise, the name, e-mail ID, mobile number, and the kind of constitution in the registration process.
• Applicants can apply for the Standup India scheme with the applicable economic institution by way of clicking the “Register” button. A representative will get in touch with them to finish any formalities.

Stand Up India Scheme: Challenges

Every scheme or application released comes up with its set of benefits and downsides. The Stand Up India Scheme is also the same. The various challenges faced by the Stand Up India scheme are given below.

• The education of the people about the socio-economic dimensions of Dalit entrepreneurship and women entrepreneurship has no longer been paid a whole lot of interest. If this isn’t always carried out, the Stand Up India scheme may not be very effective.
• The standards for this scheme say that the business company needs to be modern. Judging whether or not a product is progressive or not is left to the discretion of the DIPP. This may additionally lead to delays or loss in the system.
• The employer is needed to have a turnover of 25 crores. There are only a few women-led entrepreneurs and SC/ST-led organizations that suit this criterion.
• The self-help groups, which have indeed supplied a few inputs to women marketers, mainly in rural areas, have been difficult to elite seize and have been crushed by regionally dominant hobbies.
• The Stand Up India scheme does now not make a point out of any institutional measures to cope with these demanding situations.
• The funding support of about 10 lakhs to 1 crore is sometimes not adequate for the production region.
• The SC/ST’s and women have now not been completely and meaningfully empowered in terms of tech-understand how, get access to professional labour, understanding about the sectors and so on.

Conclusion

The Stand Up India Loan Scheme performs a critical position in fostering entrepreneurship and financial inclusion, particularly amongst women and individuals from Scheduled Castes and Scheduled Tribes in India. The scheme, with its online application way, brings a range of benefits that make a contribution to its effectiveness and accessibility.