Stand-Up India is a scheme for financing SC/ST and/or Women Entrepreneurs.
The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a Greenfield Project. This enterprise may be in manufacturing, services or the trading sector.
Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh.
For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.
Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost.
The rate of interest would be as per the extant interest rate circular of our Bank.
Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) wherever applicable.
The loan is repayable in 7 years with a maximum moratorium period of 18 months.
Working capital limit generally to be sanctioned by way of Cash Credit limit. However working capital upto 10 lakh can be sanctioned by way of overdraft facility subject to the delegation of loaning power. Rupay debit card to be issued for convenience of the borrower.
The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.