Aug 12, 2017 Other By jayesh


Preamble for Stand-up scheme ?

The above scheme has been  launched by govt. of india in the year 2016 and already completed one year. The scheme is having a motto of  empowering enterprising SC/ST and /or  women entrepreneurs. Every bank branch is expected to provide loan under the scheme at least one SC/ST and one women entrepreneur for setting up green field enterprise in manufacturing, services and trading  sector. Here it is clarified that green field means a first time venture of the entrepreneurs.

What is the eligibility for stand-up loan ?

A] Age of the entrepreneurs should be above 18 years.

B] Entrepreneur should from SC/ST category and or women candidate from any category. In case of non individual ,  51 percent of shareholding and controlling stake should be of SC/ST and or women entrepreneurs.

C] New/ first time venture called under the scheme as  green field  venture of manufacturing/services and trading sector are covered under the scheme.

D] Entrepreneur should not be defaulter of any Bank or Financial institution.

Quantum of loan / margin money/ mode of disbursement.

Under the above scheme composite loan [Term loan and working capital] between Rs 10lakhs and Rs100 lakhs can be  provided depending on the requirement of the venture, after deducting margin of 25 percent  of project cost. In other words loan up to 75% of project cost can be provided by the bank. The minimum promoters contribution should be 10% of project cost. The entrepreneurs are eligible for the subsidy/grant in aid/support under various govt sponsored schemes [central and state government. In case promoters contribution and convergence support from any other scheme is more than 25%, the quantum of loan shall be reduced to that extent. In case of working capital up to Rs 10 Lakhs drawl should be allowed as overdraft facility and rupay debit card should be issued for the convenience of the borrowers. However working capital of above  Rs10 lakhs  should be allowed as cash credit facility.  Term loan should be disbursed directly to supplier of plant and machinery and other capital assets as per project except petty expenses incidental to the project installation.

what is primary Security ?

Primary security  shall be the assets created out of bank finance and margin money. The collateral security or guarantee cover of CGFSIL (credit guarantee fund for standup  india  loans)can be taken by Banks/FIs at their own discretion.

Repayment period.

Maximum repayment of 7 years can be given by the Bank/FIs with moratorium up to 18 months.


what is the Rate of Interest ?

Lowest rate of interest applicable to the particular rating category of the Bank/FIs to be prescribed and should not exceed MCLR+3%+tenor premium in any case. is providing complete ecosystem and hand holding the entrepreneurs to help them in setting up their new venture under the above scheme.

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