Created to help the scheduled castes, scheduled tribes and women, the Stand Up India scheme is meant to give business owners from these three segments the financial boost they need to set up manufacturing, trading or service businesses in the form of greenfield projects. Learn more about this scheme by reading on.
The amount of funding and the interest it attracts
With the Stand Up India Scheme, you can get anywhere from Rs.10 lakh to Rs.1 crore as funding from various branches of scheduled commercial banks in the country. These finances are available as a composite loan amount that includes both a term loan and working capital loan. The interest rate on this composite loan will be the lender’s lowest rate on the basis of loan category. Further, it will not exceed the rate of 3% added to tenor premium and the base rate (MCLR).
The features and benefits
With the substantial amount of funding, you can begin your business enterprise without restrictions of hesitation. Further, it does not require years of accumulating funds as you will only need to bear 10% of the project cost. This composite loan covers 75% of the project’s costs giving you an impactful head start in your business venture. You can also turn to other Central / State schemes that you may be eligible for the fund the remainder of the amount.
As security, you can pledge a primary or collateral security. As your lender decides on the security needed, you can also turn to a guarantee from the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL). You can repay this loan in 7 years while the moratorium period is only up to 18 months.
The eligibility criteria
To be deemed eligible for the Stand Up India Scheme, you must be a female entrepreneur or from the Scheduled Caste or Scheduled Tribes. If your enterprise is one that is non-individual in nature, it is mandatory for 51% of the controlling and shareholding powers to be held by you, a woman or an individual belonging to SC/ST. Further, you need to be above the age of 18 and must ensure you have no listings of previous defaults. The loans granted under the Stand Up India schemes are only available for the funding of greenfield projects, which means it must be your first time setting up a business in the field of manufacturing, trading or the services sector.
Apply for the Stand Up India Scheme at the Stand Up India portal. You can also take a look at an alternative funding option that has fewer limitations on eligibility and comes packed with features. Here is one alternative that is sure to make your loan borrowing experience easy on your mind and pocket.
Bajaj Finserv Business Loan
Bajaj Finserv offers funding up to Rs.30 lakh via the Business Loan that comes at a nominal interest rate. Now, soaring business loan interest rates won’t pinch your pocket anymore! This value-added loan offering gives you funding within 24 hours with just 2 documents cutting down on wasted time and efforts.
You can apply online within minutes through a concise online application form without the need for collateral. Further, you can manage your loan account online via the customer portal. A top feature in this business finance, the Flexi Loan facility, allows you to borrow funds as you need, multiple times to meet the needs of your business. So, whether you need to buy equipment in instalments or have unpredictable needs for finances, you can rely on this cost-effective solution since you pay interest
only on the amount used and not the amount sanctioned. Further, you can choose to pay interest-only EMIs and repay the principal amount at the end of your tenor to manage your cash flow efficiently and reduce your EMIs by up to 45%. You can also prepay and redraw the prepaid amount at no cost, and enjoy true flexibility with this loan option. To begin, just check your pre-approved offer and speed through minimal procedures to view a loan offering tailor-made to suit your needs.