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

1. Title of the Scheme

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

2. Objective

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

3. Eligibility

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

Loans under the scheme are 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.

In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.

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

4. Nature of Loan

Composite loan (inclusive of term loan and working capital) between Rs.10 Lakh and upto Rs.100 Lakh.

5. Purpose of Loan

For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.

6. 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.

7. Interest Rate

As per RBI guidelines.

8. Security

Besides primary security, the loan may be secured by collateral security (endeavor should be to adequately secure the advance by obtaining minimum of 100% collateral security).

9. Repayment

The loan is repayable in 7 years with a maximum moratorium period of 18 months.

10. Working Capital

For drawal of Working capital upto Rs.10 lakh, the same may be sanctioned by way of overdraft. Working capital limit above Rs.10 lakh to be sanctioned by way of Cash Credit limit.

11. 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.

For more details contact your nearest branch.