The Stand-Up India and Start-Up India schemes are both initiatives of the Government of India to promote entrepreneurship and job creation in the country..

The Stand-Up India scheme was launched in April 2016 with the aim of providing financial assistance to women and SC/ST entrepreneurs to set up greenfield enterprises in the manufacturing, trading, or services sector. The scheme offers bank loans between Rs. 10 lakh and Rs. 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 new enterprise. The scheme also provides handholding support and knowledge dissemination through various means.

The Start-Up India scheme was launched in January 2016 with the aim of fostering entrepreneurship and promoting innovation by creating a favorable ecosystem for startups in India. The scheme offers various benefits and incentives to startups, including tax exemptions, self-certification, and funding support through various government schemes. The scheme also provides easy access to funding, incubation, and mentorship support for startups. Additionally, the scheme also aims to simplify the regulatory framework for startups and make it easier for them to do business in India.

Overall, both these schemes aim to encourage entrepreneurship and promote job creation in the country by providing financial and other forms of support to entrepreneurs and startups.

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Stand-Up India Scheme Features

• हिन्दी

Title of the Scheme

Stand-Up India Scheme for financing SC/ST and/or Women Entrepreneurs.

Objective

The objective of the Stand-Up India scheme is to facilitate 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 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

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

2. 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.

3. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held

 by either SC/ST and/or Women Entrepreneur.

4. Borrower should not be in default to any bank/financial institution.

Nature of Loan

Composite loan (inclusive of term loan and working capital) between  10 lakh and upto  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.

Working Capital

For drawal of Working capital upto  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  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..

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