46 XX | Enlightener Series | B. Central Government Schemes

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.

About the scheme…

Stand-Up India Scheme was launched by the Government of India on 5th April 2016 to support entrepreneurship among Women, and Scheduled Caste (SC) & Scheduled Tribe (ST) communities, by facilitating bank loans for them. This Scheme has been extended upto the year 2025.

The scheme is led by Small Industries Development Bank of India (SIDBI) along with the involvement of the National Bank for Agriculture & Rural Development (NABARD), Dalit Indian Chamber of Commerce and Industry (DICCI), Women Entrepreneur Associations etc.

How is it being implemented?

Under Stand-Up India Scheme, all Scheduled Commercial Banks in India offer direct financial assistance, in the form of loans, to

Women entrepreneurs, and
SC/ST

for setting up new or greenfield enterprise in manufacturing, services, agri-allied activities or trading sector.

Each bank branch needs to lend to at least one women borrower and one SC/ST borrower under this scheme.

Scheduled Commercial Banks, are in turn, backed by refinance window through SIDBI, and The National Credit Guarantee Trustee Company’s (NCGTC’s) Credit Guarantee Scheme for Stand-Up India (CGSSI).

WHAT’S ON OFFER?

I. Product:

Composite loan facility, inclusive of term loan and working capital (overdraft, cash credit) facility:

From ₹10 Lakhs to ₹1 Crore

Size of composite loan:

Equals 85% of the project cost inclusive of term loan and working capital
Stipulation of loan covering 85% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 15% of the project cost

Working capital loans:

Upto ₹10 Lakhs may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower
Above ₹10 Lakhs may be sanctioned by way of cash credit

II. Purpose:

Capital expenditure requirements
Working capital requirements

III. Borrower Type:

Individuals (above 18 years), sole proprietorship, partnership firm, or private limited company

IV. Security or Collateral or Guarantee or Insurance:

Primary security in the form of mortgage or hypothecation of primary asset acquired out of loan
Additionally, the loan may be secured by collateral security or guarantee of Credit Guarantee Scheme for Stand-Up India Loans (CGSSI) as decided by the banks
Information around requirement of insurance can be checked with your Lender Bank

V. Interest Rate:

Lowest applicable rate of your Lender Bank for that category (rating category) subject to a cap of Bank’s Base Rate (MCLR) + 3% + tenor premium

VI. Processing fee:

As per your Lender Bank’s / RBI guidelines

VII. Margin money requirement:

15%
Can be provided in convergence with other eligible Central/ State Schemes
Borrower shall be required to bring in minimum of 10% of the project cost as own contribution

VIII. Tenure:

7 years with a maximum moratorium period of 18 months

INTERESTED? READ AHEAD TO CHECK YOUR ELIGIBILITY….
I.

Are you a woman over 18 years of age?

Are you from SC/ST over 18 years of age?

II. Are you setting up a new or greenfield enterprise in manufacturing or services or agri-allied activities or trading sector, meaning, is this your first time venture in manufacturing or services or agri-allied activities or trading sector?

III.

Are you the sole owner of your business?

If you run a non-individual enterprise, do you have at least 51% of the shareholding and controlling stake?

IV. Have you never been in default to any bank or financial institution?

If your answers to the questions above are an emphatic YES, you are all set to avail loans under the Stand-up India Scheme!

SO…HOW BIG IS THIS SCHEME AND WHAT HAS BEEN DONE SO FAR?
I. As of 21st March 2022, nearly 6 years since the Scheme was launched, ₹30,160 Crores of loans were sanctioned to over 133,995 accounts since inception, under the Scheme

II. Of these, ₹24,810 Crores (82%) were sanctioned to women across 108,250 accounts (81%)

SO, NOW, HOW SHOULD YOU GO ABOUT IT?

IMPORTANT NOTE: SOMETIMES THESE LINKS DO NOT WORK AND IT SHOWS “503 Service Unavailable” ERROR. PLEASE KEEP TRYING.
I. The scheme, which covers all branches of Scheduled Commercial Banks, can be accessed in three ways:

Directly at your Lender Bank’s branch
Directly applying online through SIDBI’s Stand-Up India portal here – www.standupmitra.in – and/or handholding support (there may be a fee for this) to fill in the application form Alternatively, you may also visit SIDBI’s UdyamiMitra portal here – https://udyamimitra.in/page/standup-india-loans, and apply here – https://site.udyamimitra.in/Login/Register#NoBack
- Refer to a guided tour on this across 13 languages under the tab Guided Tour/For Applicants on https://www.standupmitra.in/
Through Lead District Manager ((LDM) – https://www.standupmitra.in/LDMS. Alternatively, you may also visit here – https://site.udyamimitra.in/LDMS, to reach out to an LDM

II. For any additional assistance you may reach out to the following:

Help centers (may charge a fee) – https://www.standupmitra.in/SUHCs Alternatively, you may also reach out a handholding agency/help centre here – https://site.udyamimitra.in/suhcs
Through Lead District Manager ((LDM) – https://www.standupmitra.in/SUCCs

III. For FAQs refer to –https://www.standupmitra.in/Home/FAQs

IV. For information on application form & indicative list of documentation requirement, across 10 languages, click here – https://www.standupmitra.in/Home/Downloads Alternatively, you may also visit here to download application form across languages – https://udyamimitra.in/page/Downloads#

Go on then…and do spread the word!

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