What Is The Stand-Up India Scheme?

Entrepreneurship was mostly limited to rich people because those from weaker sections didn’t have enough money to start businesses. Also, many women were not getting the support they needed to become self-reliant. To solve these problems, the Government of India launched the Stand-Up India Scheme.

In this article, you will get detailed information about the Stand-Up India Scheme, features, benefits, loan amounts, application process and much more.

What Is The Stand-Up India Scheme?

The Stand-Up India (SUI) scheme is a government initiative aimed at promoting entrepreneurship amongst women, Scheduled Castes (SCs) and Scheduled Tribes (STs). The govt scheme is an initiative of the Department of Financial Services (DFS), Ministry of Finance, Government of India.

The government scheme aims to provide government loan schemes from banks ranging between 10 lakhs to 1 crore to at least one woman and one member of the SCs or STs per bank branch. The scheme caters only to the setting up of greenfield enterprises, implying enterprises that have been started from scratch, without any history.

There can be two types of enterprises under the SUI scheme: individual and non-individual enterprises. The ownership stake, 51% of shares, in non-individual enterprises must be held by either a woman or a member of the SC or ST communities.

Features

This scheme offers several useful features that make it easier for first-time entrepreneurs to start a business. The key highlights are mentioned below.

• Loan Amount: Devolved between ten lakh to one crore Indian rupees.

• Eligible Borrowers: One SC/SA T or woman (above 18 years) intending to begin an independent new business venture (greenfield).

• For Non-Individual Businesses: At least 51% of the ownership of the company has to be owned by the SC/ST or female owners.

• Non-Defaulter: The borrower should not have any bad records concerning the Loans with the Banks or other Financial institutions.

The Loan Amount Of The Stand-Up India Loan Scheme

Business loans below ₹10 lakh for working capital requirement are given to start-up ventures, provided it is in manufacturing or services or trading business not exceeding ₹1 crore. The scheme also targets the funding of business initiatives by women, SCs and STs to foster new economy business among these groups.

What Are The Eligibility Criteria Of The Stand-Up India Scheme?

Before you apply, make sure you meet the basic requirements. Here are the eligibility conditions that you must fulfill for this scheme.

• The borrower has to be an SC/ST or a woman, must be 18 years of age and above and must be a first-time entrepreneur.

• Loan amounts can start at ₹ 10 lakh and can go up to ₹ 1 crore for business-minded individuals.

• At least 51% of the business has to be owned by the SC/ST persons or women.

• It is also important not to have any loans with banks or any other related financial institutions.

What Are The Documents Required For The Stand-Up India (SUI) Scheme?

While applying for the Stand-Up India Scheme, make sure you have all the essential documents listed below to speed up the process.

• Proof of Identity: Voter ID, Passport, Driving License, PAN Card or Bank Account statement/Signed copy of the Passbook along with photographs affixed thereon.

• Proof of Residence: Any of the following documents: Domicile certificate, phone bill or the last electricity bill, the latest property tax receipt t or a copy of a current passport or voter identity card.

• Business Address Proof: Other relevant papers, such as the business address.

• Non-Default Confirmation: Verification of non-payment of any bank or other type of financial organization to which you may have borrowed.

• Company Documents: For companies: Memorandum and Articles of Association or the Partnerships: Partnership Deed.

• Financial Statements: Promoters and guarantors' balance sheet, profit and loss a, and latest income tax returns.

• Rent Agreement: Where your business premises are rented, include a rent agreement along with clearance from the pollution control board, wherever needed.

• MSME Registration: In case MSME registration has been done, then produce a certified copy of the registration certificate.

• Projected Financials: Budgetary estimates for two years for working capital requirements or the term loan period, as the case may be.

• Property Documents: Lease or title deeds of the properties that were used as security in case of hiring a car, a photocopy of them.

• SC/ST Category Proof: If applicable, the Caste certificate related to the SC/ST status of the candidate as called by Indian laws.

• Certificate of Incorporation: It should be endorsed by the Registrar of Companies to cross-check the majority ownership from SC/ST/Women.

Additional Documents Required for Loans Above ₹25 Lakh:

• Unit Profile: This comprises; names of the promoters and directors, business activities of the firm, addresses of its offices and plants and shareholders part.

• Financial Statements of Related Companies: B/S for the last three years of the associate or group companies, if any, in case of a holding company.

• Project Report: If the project requires term loans, then it is mandatory to explain the machinery for the project, suppliers, cost, production capacity, gross and net target profit & loss, manpower required, and the allied financial considerations.

• Manufacturing Details: Otherwise, it should be possible to identify the manufacturing process, major executives, affiliates, inputs, sources, customers, rivals, and opportunities and threats.