Short Description
The Stand-Up India Scheme, launched on April 5, 2016, facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC/ST and one woman borrower per bank branch for setting up greenfield enterprises. It focuses on manufacturing, services, or trading sectors, providing composite loans and handholding support to entrepreneurs.
Objective
- To promote entrepreneurship at the grassroots level, specifically focusing on economic empowerment and job creation among underserved sections.
- To Promote Weaker Section, Scheduled Caste (SC), Scheduled Tribe (ST), and Women entrepreneurs.
- The scheme mandates every bank branch of all Scheduled Commercial Banks to facilitate bank loans to at least:
One Scheduled Caste (SC) or Scheduled Tribe (ST) borrower.
One Woman borrower.
Benefits / Subsidy
- Composite loans between ₹10 lakh and ₹1 crore for greenfield projects in manufacturing, services, or trading.
- Covers up to 75% of the total project cost, with a maximum repayment tenure of 7 years (including up to an 18-month moratorium).
- Rates do not exceed MCLR + 3% + tenor premium, and loans can be supported by collateral or the CGFSIL.
Eligibility
- Finance is provided for Greenfield Enterprises.
- If the applicant is a male, he must be from SC / ST category.
- The age of the applicant must be at least 18 years.
- The applicant must not be in default to any bank/financial institution.
- Applicants must contribute at least 10% of the project cost
- 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.
Documents Required
KYC Documents: Voter’s ID, Passport, Driving License, Aadhaar Card, or PAN Card of the applicant.
Address Proof: Recent utility bills (phone/electricity), property tax receipt, or Voter ID.
Caste Certificate: Mandatory for SC/ST applicants to prove category eligibility.
Ownership Proof: For non-individual enterprises, a Certificate of Incorporation from the ROC is required to confirm that at least 51% shareholding is held by SC/ST or women entrepreneurs.
Entity Constitution: Memorandum and Articles of Association (for companies) or a registered Partnership Deed (for partnerships).
MSME Registration: SSI or Udyam Registration certificate, if applicable.
Premises Proof: Rent agreement (if the business is on lease) or title deeds for owned property.
Pollution Clearance: Clearance from the Pollution Control Board, if required for your specific business activity.
Project Report: A detailed report covering business goals, machinery, and financial projections.
Financial Data: Projected balance sheets for the loan term, applicant’s assets/liabilities, and ITR.
Default Clearance: A certificate from existing bankers confirming no default.
For loans exceeding ₹25 lakhs, additional documentation is required, including detailed profiles of directors, plant location, ownership, and comprehensive operational details, such as analysis of raw materials and market position (SWOT analysis). Three years of financial records for associated firms are also required.
