Stand-Up India was launched by Government of India on 5 April 2016 to support entrepreneurship among women and SC & ST communities. It is similar to but distinct from Startup India.
The Stand up India scheme aims at promoting entrepreneurship among women and scheduled castes and tribes. The scheme is anchored by Department of Financial Services (DFS), Ministry of Finance, Government of India.
Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the 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.
- SC/ST and/or woman entrepreneurs, above 18 years of age.
- Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
- In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
- Borrower should not be in default to any bank/financial institution.
The scheme offers bank loans of between ₹10 lakh (US$14,000) and ₹1 crore (US$140,000) for scheduled castes and scheduled tribes and women setting up new enterprises outside of the farm sector.
How to Apply
A person can apply the application for a loan under the Stand Up India scheme under three ways:
- Directly at the Banks Branch
- Stand Up India Portal
- Lead District Manager (LDM) – List of LDM available on Stand Up India portal
- Proof of Identity: Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of the proprietor, partner of the director ( if a company)
- Proof of residence: Recent telephone bills, electricity bill, property tax receipt /Passport/voter’s ID Card of Proprietor, partner of Director (if a company)
- Proof of Business Address
- Applicant should not be a defaulter in any Bank/F.I.
- Memorandum and articles of association of the Company / Partnership Deed of partners etc.
- Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
- Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
- SSI / MSME registration if applicable.
- Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan
- It offers photocopies of lease deeds/ title deeds of all the properties as primary and collateral securities.
- Documents to establish whether the applicant belongs to SC/ST Category, wherever applicable.
- Certificate of incorporation from ROC to establish whether the majority stakeholding in the company is in the hands of a person who belongs to SC/ST/Woman category.
- Profile of the unit (includes names of promoters, other directors in the company, the activity undertaken addresses of all offices and plants, shareholding pattern etc.
- Last three years balance sheets of the Associate / Group Companies (if any).
- Project report (for the proposed project if it requires term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity of utilization assumed, production, sales, projected profit and loss and balance sheets for the tenor of the loan, the details of labour, staff to be hired, basis of assumption of such financial details etc.
- Manufacturing process if applicable, a major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major-competitors and the company’s strength and weaknesses as compared to their competitors etc.