In August 2015 the Stand Up India Scheme was launched. The purpose of this mortgage scheme is to promote entrepreneurship among Scheduled Caste / Scheduled Tribe/girls entrepreneurs.
Under this scheme, loans from Rs 10 lakh to Rs 1 crore are given by SC / ST or girls entrepreneurs for new projects or greenfield projects.
Stand Up India Scheme Overview | |
|---|---|
Name of the scheme | Stand Up India Scheme |
Started by | Honorable Prime Minister Shri Narendra Modi |
Government | central government |
Beneficiary | Scheduled Caste / Scheduled Tribe/girls |
An objective | Efforts to support entrepreneurship among women and SC & ST communities |
Start plan | 5 April 2016 |
Let us know about the loan scheme in detail.
Stand-up India Scheme: Eligibility
• The scheme is out there only to girls borrowers or Scheduled Caste or Scheduled Tribe debtors. Scheme just for girls entrepreneurs or SC / ST entrepreneurs
• You should have 18 years of age.
• To arrange a greenfield project (new project), you’ll be able to take a Stand Up India Loan. You cannot take a mortgage for an old business.
• You should be in project / business manufacturing, services or business sector.
• If the applicant is a company, at the least 51% shareholding or controlling stake should be SC / ST or girls.
• You haven’t defaulted on a mortgage with any bank or monetary institution.
If you and your project fulfill all these conditions, you’ll be able to apply for a loan under the Stand Up India Scheme.
How a lot loan could be available in stand-up India scheme?
- You possibly can take loans ranging from Rs 10 lakh to Rs 1 crore.
- You can take each a time period loan or a working capital loan.
- Even if you have taken each, your complete loan cannot be greater than Rs 1 crore.
- Note that under this scheme you’ll be able to solely get loans up to 75% of the overall price of the project.
- This implies, you still must convey 25% of the amount from somewhere else.
- According to the rules of the scheme, at least 10% of the borrower should invest their own cash. You can avail the state or central authorities scheme for the remaining amount. I’m giving a listing of some subsidy schemes here, which you can take advantage of.
If you are taking a working capital mortgage, then maintain this:
1. You can take a working capital loan of as much as 10 lakh rupees as overdraft.
2. If your working capital mortgage is greater than Rs 10 lakh, then it’s a must to take Money Credit Limit.
Do I need a loan of less than 10 lakh rupees?
- Under the Stand Up India Scheme, you can take a loan of 10 lakh to 1 crore rupees. You can not take a loan of less than 10 lakhs.
- But there is no need to be disappointed.
- You possibly can apply for a loan under Mudra Loan Scheme. Under Pradhan Mantri Mudra Loan Scheme, you’ll be able to take a mortgage of up to 10 lakh rupees. Mudra loan scheme doesn’t even have such conditions.
What is the stand-up India loan rate of interest?
- The government has not fixed the rate of interest.
- However yes, instructions have been given to the bank that the mortgage needs to be given at least interest rate according to the category of the borrower.
- Also, the mortgage interest rate can not exceed Base Rate / MCLR + Tenure Premium + 3%.
- According to me, the speed of interest for a new enterprise is quite good.
What’s the repayment period of Stand Up India mortgage?
The utmost mortgage tenure is 7 years. The financial institution can provide you a moratorium on principal repayment for 18 months.
What is the safety to be paid in stand up India loan?
No matter property or assets you buy from a loan, such as a machine, and many others., the bank will charge on it.
- In case of term mortgage, bank might be charged on mounted assets.
- In case of working capital loan, bank might be charged on current assets (raw supplies, finished items, receipts and many others.).
- Word that the financial institution may also ask for extra safety from you.
- If some securities can’t be offered, the financial institution might ask to hitch the Credit score Assure Scheme for Stand Up India loans.
Note: that in such a situation you could have to bear some extra bills.
How to apply for get up India loan?
You can apply for a get up India mortgage in a number of ways.
1. In the branches of the bank
2. Via the Stand Up India portal (https://www.standupmitra.in/), you’ll be able to access the Stand Up India loan utility kind on-line.
3. Through Lead District Manager, LDM
The online course of for utility is just like the application of Mudra loan. To understand the process higher you can watch this video on StandUpMitra (Stand Up India Portal).
If you want any handholding while filling the shape, you will also be provided with that help.
What is the difference between Mudra mortgage and Stand Up India loan scheme?
- There is a difference in eligibility. Stand-up India loan scheme is just for girls or SC / ST entrepreneurs. You can take a mortgage for a brand new project solely.
- There is no such restriction in Mudra loan scheme.
- Also, in Mudra mortgage scheme, you can take a loan of up to 10 lakh rupees.
- Under the Stand Up India Loan Scheme, you can take a mortgage of 10 lakh to 1 crore.
- In line with me, Mudra loan (as compared to stand-up India scheme) could be simply got.
How long it would take to get a loan?
Your loan needs to be passed inside 3-6 weeks. That is according to the rules of the scheme. In reality it may take longer. If for some reason your loan utility will get rejected, go to the bank and discover out the reason.