Stand-Up India is a scheme initiated by the Ministry of Finance to facilitate bank loans for greenfield enterprises in the manufacturing, services, trading, and agriculture-allied sectors. It specifically aims to finance at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch. In non-individual enterprises, a minimum of 51% of the shareholding and controlling stake must be held by an SC/ST or a woman entrepreneur.
Benefits
- Loan Facilitation:
Composite loans (covering both term loan and working capital) ranging from ₹10 Lakhs to ₹1 Crore. - Rupay Debit Card:
Provided for the convenience of the borrower. - Hand-holding Support:
A dedicated web portal by SIDBI offers training, skill development, mentoring, project report preparation, application assistance, and support for utility services, including access to subsidy schemes.
Eligibility Criteria
- Greenfield Enterprises:
Financing is provided only for new (greenfield) projects. - Category Requirement:
- If the applicant is an individual male, he must belong to the SC/ST category.
- In non-individual enterprises, at least 51% of the shareholding and control should be held by an SC/ST or a woman entrepreneur.
- Age:
The applicant must be at least 18 years old. - Creditworthiness:
The applicant must not be in default with any bank or financial institution.
Application Process
How to Apply:
Applications can be submitted through multiple channels:
-
Through Bank Branch:
Visit your nearest bank branch to apply. (Find your nearest branch here.) -
Through Lead District Manager (LDM):
Contact your district’s LDM for further assistance. (District contact details available here.) -
Online via the Stand-Up India Portal:
- Visit the official portal at www.standupmitra.in.
- Enter full details of your business location.
- Select your category (SC, ST, Woman) and indicate if the shareholding is 51% or higher.
- Provide details regarding the nature of the proposed business, desired loan amount, business description, premises details, and past business experience.
- Indicate if hand-holding support is required.
- Enter all personal and enterprise details, including the enterprise name and constitution.
- Click on “Register” to complete the registration process.
Once registered, you can initiate your Stand-Up India Loan Application process with the respective financial institution. Officials will then contact you to complete further formalities.
Documents Required
- Proof of Identity:
Voter’s ID Card / Passport / Driving License / PAN Card or any official signature identification from your current bankers. - Proof of Residence:
Recent telephone bills, electricity bill, property tax receipt, or a passport/voter’s ID card of the proprietor/partner/director. - Business Proof:
Proof of business address. - Credit Clearance:
Document verifying that the applicant is not a defaulter with any bank/financial institution. - Corporate Documents (for Companies/Partnerships):
- Memorandum & Articles of Association or Partnership Deed.
- Assets & liabilities statement along with the latest income tax returns of promoters/guarantors.
- Premises Verification:
Rent Agreement (if applicable) and clearance from the pollution control board (if applicable). - Registration Certifications:
SSI/MSME registration (if applicable). - Financial Projections:
Projected balance sheets for the next two years (for working capital limits) and for the entire loan period (for term loans). - Security Documents:
Photocopies of lease deeds/title deeds for properties offered as primary and collateral securities. - Category Verification:
Documents establishing SC/ST or Woman category eligibility. - For Company Applicants:
Certificate of Incorporation from the ROC showing majority stake holding by SC/ST/Woman category individuals. - For Loans Above ₹25 Lakhs (if applicable):
- Detailed profile of the unit (including promoters, directors, shareholding pattern, etc.).
- Last three years’ balance sheets of associate/group companies (if any).
- A comprehensive project report with details on machinery, suppliers, financial projections, production, sales, and staffing requirements.
- Information on the manufacturing process, key executives, tie-ups, raw material suppliers, buyer details, competitor analysis, and company strengths/weaknesses.
Frequently Asked Questions (FAQs)
-
What is the nature and size of the loan?
Loans range from ₹10 Lakhs to ₹1 Crore for setting up a greenfield enterprise. -
What interest rate will be charged?
Interest rates depend on the lending institution and prevailing policies; please consult your bank for specific details. -
What is the loan repayment schedule?
Repayment terms are determined by the individual lending institution based on the loan agreement. -
Who are the eligible lending institutions?
Participating banks and financial institutions that have been designated for Stand-Up India financing. -
What is Hand-holding Support?
It is the guidance and assistance provided through the NBHM portal (by SIDBI) to help applicants with training, skill development, project report preparation, application filling, and other support services. -
How do I access hand-holding support?
By registering on the Stand-Up India portal and selecting the hand-holding option during the application process. -
For what activities is the Stand-Up India loan provided?
The loan supports the setting up of greenfield enterprises in manufacturing, services, trading, and agriculture-allied activities. -
What is the difference between Stand-Up India and Start-Up India?
Stand-Up India focuses on financing greenfield projects for SC/ST and women entrepreneurs, whereas Start-Up India targets new business ventures across various sectors, regardless of category. -
Is there an application fee?
Please refer to the official guidelines or consult with the lending institution for any applicable fees.