Stand-Up India Scheme: Loans for SC/ST and Women Entrepreneurs

The Stand-Up India scheme was launched by the Government of India to promote entrepreneurship at the grassroots level. It specifically targets segments of the population that have historically faced challenges in accessing institutional credit, focusing on economic empowerment and job creation.

What is this scheme?

The Stand-Up India scheme facilitates bank loans between ₹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 greenfield enterprise. This enterprise may be in manufacturing, services, agri-allied activities, or the trading sector.

Who is eligible?

• SC/ST and/or women entrepreneurs, above 18 years of age.
• Loans under the scheme are available for only greenfield projects (the first-time venture of the beneficiary).
• 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.
• The borrower should not be in default to any bank or financial institution.

How much money?

Composite loan (inclusive of term loan and working capital) between ₹10 lakh and up to ₹100 lakh (₹1 crore).

Documents needed

1. Proof of Identity (Voter ID, Passport, PAN Card, Aadhaar Card).
2. Proof of Residence (Recent utility bills, Property tax receipt).
3. Business Address Proof.
4. Caste Certificate (for SC/ST category).
5. Project Profile (Project Report).
6. Partnership Deed or Memorandum and Articles of Association (if applicable).
7. Last 3 years balance sheets of the promoter (if applicable).
8. Pollution Control Board Clearance (if required for the industry).

How to apply (step by step)

1. Visit the Stand-Up Mitra portal or your nearest bank branch.
2. Register as a 'New User' on the official portal and fill in the required borrower details.
3. Choose whether you need 'Handholding Support' or are ready to apply for the loan directly.
4. Select the bank and branch through which you wish to process the loan.
5. Upload the necessary documents as per the checklist provided by the portal.
6. Track the application status online; the bank will conduct due diligence before sanctioning the loan.

Important dates

Conclusion

The Stand-Up India scheme is a transformative initiative that bridges the gap between aspiring entrepreneurs and institutional finance. By focusing on women and SC/ST communities, it ensures inclusive economic growth and fosters a culture of self-reliance.