stand-up india scheme access the stand-up india home page

Start Up India program Stand Up India ProgramLaunched on Jan 16, 2016 Launched on April 8, 2016

Equity based financing Loan based financing

Delivery through equity funds Delivery through banking network

Target beneficiary : all, irrespective of gender or caste.

Target beneficiary : SC / ST / Women

No such condition. 51% share holding should be with the target group.

No such criteria. Composite Loan

Focus on removing obstacles Focus on enabling finance

Website address : Startupindia.gov.in

Website address : www.standupmitra.in

Contact e mail ids: [email protected]

Contact e mail ids: [email protected]; [email protected].

mailto:[email protected]

Stand-Up India Scheme

Access the Stand-Up India Home Page through www.standupmitra.in

Objective

The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.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 green field 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

SC/ST and/or woman entrepreneurs, above 18 years of age.

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.


The Stand-Up India portal is being operated and maintained by SIDBI

Nature of Loan Composite loan (inclusive of term loan and working capital) between Rs.10 lakh and upto Rs.100 lakh.

Purpose of Loan For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/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 period of 18 months.

Stand-Up India SchemeWorking Capital For drawal of Working capital upto Rs.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 Rs. 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.STAND-UP INDIA SCHEME WOULD BE OPERATED BY ALL THE BRANCHES OF SCHEDULED COMMERCIAL BANKS IN INDIA.



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 period of 18 months.

Benefits of Stand Up India Portal


1. E-platform for getting all information on various handholding agencies and Banks at one place.

2. Online Submission of application for loan and access tohandholding support, which would be monitored at district level by LDM/ DDM.

3. Submission of the application is linked with ADHAAR, reducing the possibilities for submission of multiple applications by one borrower.

4. Loan applications can be lodged from anywhere anytime across the country even from home computers.

Benefits of Stand Up India Portal


5.The portal provides for market place for banks to access lendable projects, making a win-win position for banks and entrepreneurs.

6.Easy Tracking of the request made by prospective entrepreneurs.

7.Higher level of transparency from submission to resolution/ cancellation.

8.Easy monitoring of the implementation of the scheme on real-time basis by monitoring agencies.

Responsibilities of Stakeholders


SIDBI:

To operate and maintain the Stand-Up India web portal

Arrange for handholding support for Trainee Borrowers

Liaise with banks for follow up in potential cases through LDM/SLBC

Coordinate with LDM for easing bottlenecks

Assist the SLBC and DLCC in reviews and monitoring

Participate in Stand-Up events organized by NABARD.



NABARD:

Training of Trainers, LDMs, Bank officers for Stand-Up India

Arrange for handholding support for trainee borrowers

Liaise with banks for follow up in potential cases through the LDM

Coordinate with LDM for easing bottlenecks

Assist the SLBC and DLCC in reviews and monitoring

Organize events, as frequently as necessary and at least once in each quarter, for experience sharing etc. amongst stakeholders.



LDMs:

Monitor progress of cases

Serve as contact point for SIDBI/NABARD for easing bottlenecks

Sensitize bankers on potential borrowers

Follow up with concerned regional/zonal office of the respective bank to ensure timely processing/ sanction of loans as per time frame specified in Code of Bank’s Commitment to Micro and Small Enterprises

Ensure that borrower’s requirement of handholding support is satisfied to the extent possible



LDMs:

Convene DLCC meetings in the specified periodicity.

Participate in quarterly events with stakeholders organized by NABARD.

Bank Branches:

Help potential borrowers in accessing the portal

Process loan applications received online or in person



Bank Branches:

In case of rejection, reason to be made known to borrower as stipulated in the Code of Bank’s Commitment to Customers

Grievance redressal at the bank level should be done in 15 days at the bank level as per Code of Bank’s Commitment to Customers.

Banks to put in place an internal mechanism for monitoring of scheme performance

Roles of Handholding Agencies


Areas of Expertise

Agencies Involved

[Examples]

Role of Agency

Skilling (Vocational)

ITI/ITC To impart accredited training in job related and technical skills. It covers various industries and technology as per the needs of entrepreneur.

Financial Training

Financial Literacy Centres promoted by Banks

These centres extend credit counseling to the entrepreneurs and facilitate in developing creditworthy proposals. They provide education on financial planning, responsible borrowing, debt counseling etc. They educate about various financial products available in the formal financial sector.



Areas of Expertise

Agencies Involved

[Examples]

Role of Agency

Entrepreneurship Development Programmes (EDPs)

RSETI and EDI and Tool Rooms

EDPs nurture the talent of prospective entrepreneurs by educating them on various aspects of industrial activities required for setting up a business. The programme provides useful information on product, process, design, manufacturing practices, testing, quality control, selection of appropriate machinery, project profile preparation, marketing techniques and financial management.



Areas of Expertise

Agencies Involved

[Examples]

Role of Agency

Mentoring Industry Association & Chambers

Mentoring is a process for the informal transmission of knowledge, social capital and psychosocial support perceived by the recipient as relevant to work, career or professional development. It is a voluntary process by experienced persons to guide an entrepreneur in business and related decision making process.

Work sheds District Industries Centre (DICs)

District Industries centres facilitate allotment of plot/shed in the industrial estate in specific area.



Areas of Expertise

Agencies Involved

[Examples]

Role of Agency

Application Filling/Project Report Preparation

NGOs/Voluntary Organisations/ Professionals and Lead Banks/Skilling (Vocational)/Financial Training/DICs

These agencies may facilitate entrepreneurs in filling up the loan applications and prepare project which broadly covers product, process, market and viability of the business.

Margin Money or Subsidy

KVIC/KVIB/State Govt. /Central Govt. Bodies/DIC

These agencies will provide information and guidance support on availing range of subsidies/ margin money schemes that are available.

Thank Thank You You

stand-up india scheme access the stand-up india home page

Documents