Stand Up India Scheme - Collateral Free Business Loans for New Entrepreneurs
Starting up a new businesses is the need of Indian Economy. Find the details about Stand Up India Scheme that offer collateral free loans to fir time entrepreneurs from SC/ ST and Women category.
Find what is Stand Up India Scheme, Eligibility, Businesses that are supported under this scheme, Documents needed for loans under this scheme, Reasons for rejection of your loan application etc.
What is Stand Up India Scheme?
Scheme to help first time entrepreneurs set up new businesses. The loans provided range from 10 Lakh - 1 Crore Rs/-. Existing projects are not supported under this scheme.
Eligibility criteria for StandUp India Scheme Loan
- Age: 18+ years
- You should not be a defaulter of any bank in the past
- Important : Only SC/ ST and Women candidates can get loan under this scheme
- Companies wanting to apply under this scheme need an SC/ST or Women candidate to own 51% share of the company.
Which businesses are supported under Stand Up India Scheme?
- Allied farming activities
All these businesses are supported under this scheme.
From where can you get StandUp India Scheme Loan
- You can get this loan from Scheduled Commercial Banks.
- Rate of Interest is nominal as per RBI guidelines
- The loan is provided both as Term Loan and Working Capital.
Term Loan: Loan to set up the business. For e.g. Machinery etc.
Working Capital: Amount required for the day to day expenses in the business.
More details about the loan:
- Usually 75% of the project cost is sanctioned as the loan.
- Applicant has to invest 25% of the project cost from their side. This is called as Margin Money.
At times, government helps even more with the margin money, still your contribution has to be at least 10% of the project cost.
- Providing collateral is not compulsory here.
Documents needed for Loan under Stand Up India Scheme
i.) Identity (Voter ID, Aadhaar, PAN Card, Passport)
ii.) Residence Address Proof
iii.) Business Address
iv.) Caste Certificate, if you want to take benefit as SC/ST
v.) Company Papers
- Incorporation Certificate
- Proprietorship/ Partnership Deed
- Rent Agreement of the premises
- Asset – Liability Record
- Personal ITR for individuals
- Projected Balance Sheet – For a new business
- Pullution Control Boar Certificate/ Ay other license needed for business
- A good Project Report
Reasons for rejection of loan application under Stand Up India Scheme
1. Poor Project Report - Not able to convince the bank about the viability of the project
2. You lack the skills - Solution is to understand this and gain the required skills
3. Unnecessary rejection - Apply for the loan online and track. Apply online through the websites: https://www.standupmitra.in; https://www.udyamimitramitra.in