Dear Entrepreneurs – You all must have read about the Standup India scheme announced under the union budget in April 2016 to promote entrepreneurship among SC/ST and women entrepreneurs. The Scheme is intended to facilitate at least two such projects per bank branch, on an average one for each category of entrepreneur. It is expected to benefit at least 2.5 lakh borrowers. The expected date of reaching the target of at least 2.5 lakh approvals is 36 months from the launch of the scheme.
Terms of the loan available:
Type of project – Green field projects plus expansion of existing enterprises
Type of entrepreneur – This scheme is for SC/ST and women entrepreneurs only. So any enterprise where majority holding is with SC/ST or women entrepreneurs are eligible to apply.
- Loan amount – INR 10lakh to INR 1Cr
- Tenure – upto 7 years
- Type of loans – working capital,term loans, letter of credit, bank guarantee
- Security – 25% margin money , meaning 25% of the total project cost to be contributed by the entrepreneur
- Cost – based upon borrowers risk profile, linked to banks’ reference rates.
- Other – These loans are available under the refinance window opened through SIDBI, with an initial corpus of INR 10,000 Crores. The Stand Up India scheme provides for creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC).
- How to go about practically availing the benefit? Here is a practical guide, start with appraising your project yourself, be sure about the total cost. Tie up marketing, procurement, manufacturing, trading and all other missing links. Make a project report. Test the viability of your project. After that get your documents in order like address, identity proofs, business proof, lease deed (if rented) for your work premises etc. Then approach the banks for financing.
- Documentation required – Regular documents like KYC (address and identity proof), project report and income documents. For green field projects a project viability report will be a must.
Have any more questions please contact us at:+91 98675 77837, firstname.lastname@example.org.