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Stand Up India

Copyright@Biz2Credit 2015
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What is Stand Up India?

 Introduction

The Hon’ble Prime Minister, Shri. Narendra Modi in his Independence Day address
on August 15, 2015 unveiled his game changer campaign "Start-Up India" Stand-Up
India to promote entrepreneurship at grass root level for economic empowerment
and job creation.

The Stand-Up India Scheme launched to coincide with the celebration of the 125th
birth anniversary of Dr. Babasaheb Bhimrao Ambedkar, seeks to leverage the
institutional credit structure to reach out to the underserved sector of people such
as Scheduled Caste, Scheduled Tribe and Women entrepreneurs so as to enable
them to participate in the economic growth of the nation.
 Introduction
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•Stand Up India Scheme is approved by Union Cabinet and launched by

Honorable Prime Minister of India on 5th April, 2016 at Sector 62, Noida (U.P,
India).
•The scheme promoted 2.5 lakh women, scheduled caste and scheduled tribes
entrepreneurs through banks.
•The Scheme will act as a refinance window through SIDBI (Small Industries
Development Bank of India) with INR 10,000 crore.
•It will provide loans to entrepreneurs belonging to the said three categories in
the range of INR 10 lakh to INR 1 crore.
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Key Benefits
 Benefit #1
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A Composite Loan of INR 10 lakh to upto 1 crore

•The amount is inclusive of working capital for

entrepreneurs belonging to any of the 3
categories, i.e. women, SC or ST.
•It will help them to set up their business without
worrying about arranging seed capital. The
amount can be repaid within 7 years, which is
quite a comfortable tenure.
 Benefit #2
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Withdrawal of Working capital through debit card

• Now, withdraw working capital using debit

card and start your business as early as you
can.

• This would help to give a boost to the

small businesses & MSME community.
 Benefit #3
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Development of borrower's credit history

• Obtaining these loans can also help in developing or improving your credit
history if you are/have been in good repayment terms.
 Benefit #4
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SIDBI to have a refinance window for entrepreneurs

•Small Industries Development Bank of India will be opening a refinance

window for SMEs starting with the amount of INR 10,000 crore.
 Benefit #5
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Credit guarantee fund of INR 5,000 crore to be created by NCGTC (National
Credit Guarantee Trustee Company Ltd)
• There will be more chances to get approval for the loan and obtain the same
to start your business.
 Benefit #6
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Comprehensive support for borrowers

•The borrowers will not just receive funds, but will also get the support in pre and
operational phases of loan procurement, as well as for marketing of the business.
 Benefit #7
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Web portal & mobile app
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•Entrepreneurs can easily download application forms for business loans; do online
registration; and self certification through web portal and mobile app.
 Benefit #8
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Relaxation fort SMEs that are under 3 years

•No inspection of start-ups and income tax relaxation during the first 3 years of
starting the business.
 Benefit #9
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Application fee to be reduced

•80% reduction in application fee for SME patent applications.

 Benefit #10
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Easier exit policies

•For businesses that are not performing well, there will be easier exit policies.
 Benefit #11
Upgradation
1 for rickshaw pullers
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•Upgradation of rickshaw-pullers into E-

rickshaw owners.
•About 5100 E-Rickshaws was
distributed by the Bhartiya Micro
Credit during the launch event.
•Three times increment in their
income.
•Training for them and certification will
be provided by NSDC (National Skill
Development Corporation) on
completion of training.
 Title of the Scheme
Stand-Up India Scheme for financing SC/ST and/or Women Entrepreneurs.
Objective
The objective of the Stand-Up India scheme is to facilitate bank loans
between  10 lakh and  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.
 Eligibility
1.SC/ST and/or woman entrepreneurs, above 18 years of age.
2.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.
3.In case of non-individual enterprises, 51% of the shareholding and controlling stake
should be held by either SC/ST and/or Women Entrepreneur.
4.Borrower should not be in default to any bank/financial institution.
Nature of Loan
Composite loan (inclusive of term loan and working capital) between  10 lakh and
upto  100 lakh.
Purpose of Loan
For setting up a new enterprise in manufacturing, trading or services sector by SC/ST and
Women Entrepreneur.
 Size of Loan
Composite loan of 75% of the project cost inclusive of term loan and working
capital. The stipulation of the loan being expected to cover 75% of the project
cost would not apply if the borrower’s contribution along with convergence
support from any other schemes exceeds 25% of the project cost.
Interest Rate
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).
Security
Besides primary security, the loan may be secured by collateral security or
guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans
(CGFSIL) as decided by the banks.
 Repayment
The loan is repayable in 7 years with a maximum moratorium (Delay) period of 18
months.
Working Capital
For drawal of Working capital upto  10 lakh, the same may be sanctioned by way of
overdraft. Rupay debit card to be issued for convenience of the borrower.
Working capital limit above  10 lakh to be sanctioned by way of Cash Credit limit.
Margin Money
The Scheme envisages 25% margin money which can be provided in convergence
with eligible Central / State schemes. While such schemes can be drawn upon for
availing admissible subsidies or for meeting margin money requirements, in all
cases, the borrower shall be required to bring in minimum of 10% of the project cost
as own contribution.