21st September, 2018

Frequently asked questions about Stand-Up India

Stand-Up India frequently Asked Questions

1. What ‘Stand-Up India’ scheme is about?

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.

2. Who can apply for loan under Stand-Up India scheme?

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.

3. What is the rate of interest charge under the ‘Stand-Up India’ scheme?

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

4. What is the repayment tenure under the scheme?

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.

5. What will be the security requirement under the scheme?

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.

6. What is the size of the loan under the Stand-Up India scheme?

Under the Stand-Up India scheme, one could get a composite loan from 10 lakhs to 1 crore.

7. How is Stand-Up India different from startup India?

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.

8. What will be the other benefits of this scheme?

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.

9. How does this portal help me?

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.

10. Which banks would come under this scheme?

All branches of scheduled commercial banks located across the country come under this scheme.