Stand-Up India Govt Scheme for Women Entrepreneurs

In order to achieve gender equality and women empowerment, women must get equal access to and control over economic and financial resources. According to the National Family Health Survey 2019–2021, the sex ratio in India is 1,020 women for every 1,000 men. This indicates that the women outnumber men in India. However, this is only true in terms of population and not equal opportunities. 

According to the Sixth Economic Census conducted by the Ministry of Statistics and Programme Implementation (MoSPI) on women entrepreneurs in India, “it has been observed that 8.05 million out of the total 58.5 million establishments were run by women entrepreneurs in India which is around 13.76 % of the total number of establishments. Total workers engaged in women owned & run establishments were 13.48 million persons, which is 10.24% of the total number of workers engaged in India under different economic activities. “

However, the Government of India is making efforts to increase the number of Women Entrepreneurs by rolling out various schemes. One popular scheme for achieving this goal is the Stand-up India Scheme for Women Entrepreneurs. In this blog post, we will discuss Stand Up India Scheme details.

What is the Stand-Up India Scheme?

Stand-up India Scheme is an initiative of the Government of India. It was launched on 5th April, 2016, by the Ministry of Finance for financing Scheduled Castes, Scheduled Tribes and Women Entrepreneurs. The Stand-up India Scheme provides collateral-free bank loans to entrepreneurs to start new greenfield project business in manufacturing, services, trading sector and activities allied to agriculture. 

This scheme’s aim is to make bank loans between Rs. 10 lakh and Rs. 1 crore available to at least one woman borrower and one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower at each bank branch so they can start a greenfield business. For non-individual businesses, a woman or a SC/ST entrepreneur should own at least 51% of the controlling and shareholding stake to be eligible for loan under the woman entrepreneur scheme.

There is no fixed Stand Up India Scheme interest rate. The interest rate at which loan is provided under this scheme depends on a number of factors, including collateral security, risk profile, and credit rating. As of September 21, 2023, the average interest rate for loans approved under the program was 9.67%, according to data provided on the Stand-Up India Portal.

Features of Stand-Up India Scheme

The features of the Stand-Up India scheme are as follows:

• The loans under the Woman Entrepreneur Scheme can be composite loans consisting of working capital and term loans.
• The composite loan can be up to 85% of the greenfield project cost. However, if the borrower’s contribution to the project cost exceeds 15%, it isn’t applicable.
• The scheme facilitates loans ranging from Rs. 10 lakh to Rs. 1 crore.
• The Stand Up India Scheme loan may be covered under the guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) based on the discretion of the bank.
• The lowest interest rate in the category must be applied. The base rate/MCLR + 3% + tenor premium cannot be exceeded.
• Stand-Up India loans have a seven-year repayment term and an 18-month maximum allowable moratorium period.
• An overdraft is used to give working capital up to 10 lakh. For a larger amount, cash credit is given.
• Eligible central or state government programs may offer 15% margin money. At least 10% of the project’s cost must be contributed by the borrower.
• All branches of scheduled commercial banks offer Stand Up India Loans, and each branch provides a loan to a minimum of one woman borrower and one SC/ST borrower. 

Stand-Up India Scheme Eligibility

To be eligible for the Stand Up India scheme, the following criteria must be met by the applicants:

• The applicant shall belong to ST/SC background, or be a woman entrepreneur to avail the benefits of the Stand Up India Scheme. 
• They must be at least 18 years of age.
• The loan borrower should not have defaulted at the bank or any other financial institution. 
• Non-individuals, like existing firms and enterprises, can apply for this scheme if 51% of their shareholding and controlling stakes are held by a woman entrepreneur/ST/SC. 
• For loans under the woman entrepreneur scheme, only greenfield projects are eligible.

Documents Required for Stand Up India Scheme

To apply for the Stand Up India scheme online, the following documents are required at the time of application filing:

• Voter’s ID/Passport/Driving License/PAN Card/Signature Identification from Present Bankers of Proprietor, Partner of Director (if a company).
• Recent Utility Bills such as telephone bill, electricity bill, property tax receipt, etc.
• Proof of Business Address.
• Proof that the Applicant is not a default in a bank/financial institution.
• Memorandum of Association and Articles of Association in case of a company.
• Partnership Deed in case of a partnership firm.
• Assets and Liabilities Statement and Latest Income Tax Returns of Promoters and Guarantors.
• Rent Agreement.
• Clearance from Pollution Control Board, if applicable. 
• MSME registration, if applicable.
• Projected Balance Sheets for the next two years
• Documents to establish whether the applicant belongs to SC/ST Category.
• Certificate of incorporation from ROC to prove the majority stake holding in the company lies with the person belonging to SC/ST/Woman category.

How to Apply for the Stand Up India Scheme?

To initiate the Stand Up India Scheme process, you can approach your nearest bank branch to apply for the Stand Up India Scheme offline. Alternatively, you can apply for the scheme through the Lead District Manager. 

The process for applying for the Stand Up India Scheme online can be initiated by visiting the Stand Up Mitra Portal. The following steps are involved in Stand Up India Scheme application process: 

Step 1: Visit the official website of Stand Up Mitra Portal.
Step 2: Click on the register button and enter all the required details.

Step 3: Select the category between SC, ST or Woman, and whether the stake held is 51% or more.

Step 4: Select the proposed business’ nature, loan amount desired, business description, premise details, and other details. 

Step 5: Provide details regarding past business experience, including tenure and indicate if you need hand-holding.

Step 6: Enter your personal details, including enterprise name and its constitution. 

Step 7: As a final step, click on the Register button.

You can initiate the Stand Up India Loan application process after completing the registration. Once done, you can connect with respective financial institution officials for completing the StandUp India Loan process and requisite formalities.

Conclusion

The Stand-Up India Scheme is run by the Ministry of Finance, Government of India. It aims to help in upliftment of scheduled castes, scheduled tribes and women entrepreneurs by facilitating loans ranging from Rs. 10 lakh to Rs. 1 crore. To apply for the women entrepreneur scheme online, you can visit the official Stand Up Mitra Portal. Alternatively, you can visit your nearest bank branch or connect with the Lead District Manager. 

Frequently Asked Questions (FAQs)

Q1. What is a greenfield project?

A greenfield project is one that is initiated from the beginning and is not bound by the limitations imposed by prior work. 

Q2. What is the loan amount offered under the Stand Up India Scheme?

The loan amount offered under the Stand Up India Scheme ranges from Rs. 10 lakh to Rs. 1 crore.

Q3. Who can apply for the Stand Up India Scheme?

To apply for the Stand Up India Scheme online, applicants must be women or SC/ST entrepreneurs over 18 years old.

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