Stand-Up India scheme was launched with the objective of promoting bank financing for green field enterprises with a view of promoting ST/SC/Woman entrepreneurs by providing them with loan ranging from 10 lakhs to 1 crore through 1.25 lakh bank branches network of scheduled commercial banks across the country.
ST/SC and women entrepreneurs setting up new enterprises can apply for loan under this scheme. The business needs to be related to manufacturing, trading or service sector.
The rate of interest would be lowest applicable rate of the bank for that category not to exceed base rate +3%+ tenor premium
The repayment period of the composite loan varies depending on the nature of the business activity and useful life of the assets purchased from the bank loan but it has to be less than 7 years with a maximum moratorium period of 18 months.
In addition to mortgage/ hypothecation acquired out of primary assets acquired out of loan, the loan may also be secured by collateral security or guarantee of Credit guarantee Scheme Stand-Up India Loans (CGSSI) as decided by the banks.
Under the Stand-Up India scheme, one could get a composite loan from 10 lakhs to 1 crore.
Stand-Up India focuses specifically on encouraging SC/ST and women entrepreneur for starting up new enterprises while Start up India was an initiative which encouraged innovative and technology led enterprises which can either be new or already existing.
The Stand-Up India scheme also provides handholding support too, apart from lending loan, through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filing, utility support services, subsidy schemes etc. which is done by a web portal designed by SIDBI.
This portal is quite helpful for people who seek to take up loan and establish their enterprise as the portal would give step by step guidance for setting up an enterprise and all the formalities related to it.
All branches of scheduled commercial banks located across the country come under this scheme.