Banking FAQs & How To GuideStand Up India

Eligibility FAQ Stand-Up India Loan Schemes ?

What are the eligibility criteria for Stand-Up India loan schemes ? Know the FAQ on eligibility FAQ about Stand-up India Loan schemes to Women, SC/ST entrepreneurs.

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What is Stand-Up India Loan Schemes ?

What is the Objective of Stand-Up India Loan Schemes ?

1. What is the objective of “Stand-Up India” Scheme?

The scheme is for setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

For loans below 10 lakh, banks are already lending under their existing schemes. Further, MUDRA Ltd. also operates 3 schemes namely Shishu/Kishore/Tarun through banks for loans upto 10 lakh.

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4. Who are the target clients under Stand-Up India Scheme / what  kind of borrowers are eligible for loans?

SC/ST and/or Women entrepreneurs setting up new enterprises are eligible for availing loans under Stand-Up India Scheme. Typically projects in the manufacturing, trading and service sector would be eligible for coverage under the scheme.

5. What will be the nature of loan under the Stand-Up India Scheme?

Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh representing upto 75% of the project cost would be eligible.

Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh would be eligible

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

8. What will be the security requirement under the Stand-Up India Scheme?

In addition to mortgage/hypothecation of Primary Asset acquired out of loan, the loan may also be secured by collateral security or guarantee of Credit Guarantee Scheme for Stand-Up India Loans (CGSSI) as decided by the banks.

9. Who are the eligible lending institutions for extending loans under the Scheme?

All branches of Scheduled Commercial Banks located across the country.

  • Guarantee Fee shall be paid upfront to the Trust by the eligible institution availing of the guarantee and to be shared equally between bank and the borrower.

12. What is the Difference between  Stand-Up India Scheme and SMILE Scheme?

SMILE Scheme is operated only through SIDBI for investment in projects coming up in 25 identified sectors under the Make in India programme for existing and new units. The support is in the nature of quasi equity and term loan on relatively soft terms, with the minimum term loan size for new units at 25 lakh.

Stand-Up India scheme is proposed to be operated through 1.25 lakh bank branches in the country.

Stand-Up India Scheme is intended to support SC/ST/Women entrepreneurs to set up  a green field projects through bank branches in India while Start Up India Scheme aims to boost innovative and technology led enterprises for new/existing enterprises.

14. What will be the other benefits under the Stand-Up India Loan Scheme?

Apart from linking prospective borrowers to banks for loans , the web portal designed by SIDBI for Stand-Up India Scheme also provides handholding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filling, work shed/utility support services, subsidy schemes etc.

15. What is the mechanism for identification of the beneficiary under the Scheme?

The beneficiaries could be walk-in customers for a bank, online applicants or trainees from various government and non-government agencies engaged in providing vocation training, Entrepreneurship Development Programs, Financial training etc.

Stand-Up India Scheme is a special scheme for women entrepreneu Therefore, House wife can

17. What is Hand-holding Support?

Any new entrepreneur requires guidance in his endeavor to set up his or her business enterprise starting from training to filling up loan applications as per bank requirements.

18. How do I get handholding support?

20. In case loan proposal is not approved by the Bank ?

Please get in touch with your preferred banker (chosen by you) to understand why the proposal was not approved and based on that take corrective action to make the proposal credit worthy.

21. In case  collateral offered by the borrower do he/she need to compulsorily opt for credit guarantee cover for the loan under Stand-Up India?

No. There is no compulsion for securing the loan only by way of Credit Guarantee Cover. You may opt for securing the loan by way of collateral security also. Please discuss this aspect with your banker.

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