Stand-Up India loans worth over Rs. 50,551 crore have been disbursed to over 2.24 lakh accounts of SC/ST entrepreneurs or women entrepreneurs. Read on to learn more.
Member of Parliament Bengaluru South Tejasvi Surya on March 24, 2024, said that the Stand-Up India scheme has disbursed loans worth Rs. 724 crore just to Scheduled Caste (SC) and Scheduled Tribe (ST) women entrepreneurs in Bengaluru. As per the latest data available on the government portal, the Stand-Up India loans amounting to over Rs. 50,551 crore, have been provided to more than 2.24 lakh accounts in India.
The Stand-Up India scheme aims to provide bank loans ranging from Rs. 10 lakh to Rs. 1 crore to at least one SC/ST and one woman borrower per bank branch for setting up a new enterprise in select sectors. These loans can be used to establish new enterprises in manufacturing, services, agri-allied activities or trading sectors. Individuals from SC/ST backgrounds or woman borrowers should hold at least 51 per cent ownership of the business enterprise.
Stand-up India loan amount can be used to cover capital investment such as plant and machinery or working capital needs, with up to 85 per cent of the project cost being funded under the scheme. The rate of interest would be the lowest applicable rate of the bank for that category (rating) not to exceed (base rate (MCLR) + 3 per cent+ tenor premium), the government website says. The loan should be repaid in 7 years, which includes a moratorium period of 18 months. If you are still short of funds, eligible Central or State schemes can be used for further support but a minimum of 10 per cent of project cost should be your contribution.
The StandUp loan is available through all branches of Scheduled Commercial Banks and can be availed either directly at the branch or through SIDBI's dedicated portal www.standupmitra.in. At the portal click register. You will be asked to provide your name, email id and contact number. Upon login, you should go through a questionnaire and based on your level of preparedness, you will be categorized as Trainee Borrower or Ready Borrower.
Trainee Borrowers receive handholding support through the SIDBI or NABARD office. Upon registration as a Trainee Borrower on the portal, it will link the borrower to the Lead District Manager (LDM) of the concerned district and the relevant office of SIDBI/ NABARD. Ready Borrowers can register at the portal and directly start the loan application process at their chosen bank branch. Both categories of borrowers can also track their loan applications through the portal.