#PolicyExplainer: How to apply for loan under Standup India scheme
In order to promote entrepreneurship among women, scheduled castes, and scheduled tribes, the Government of India had launched the Standup India scheme in April 2016. Under the scheme, financial assistance is provided to SC/ST/women entrepreneurs. So, what is the amount of loan that the government gives and what is the eligibility criteria for the same? Get all these questions answered here in detail.
Who is eligible for loan under the Standup India scheme?
The applicant must be above 18 years of age and should be a woman or an SC/ST community member. Further, the loan is available only for green field projects, i.e. the first-time venture of the beneficiary in manufacturing/trading/service sector. In case of non-individual applicants, 51% of the controlling stake should be with an SC/ST member or a woman. The applicant shouldn't be a bank/financial institution defaulter.
Details related to Standup India loan: Part 1
The loan granted under the Standup India scheme is a composite loan which includes a term loan and the working capital. The amount of loan ranges between Rs. 10 lakh and Rs. 100 lakh. The interest rate on the loan is reportedly the lowest offered by the bank for the particular category.
Details related to Standup India loan: Part 2
The loan granted under this government scheme is repayable in 7 years with a maximum moratorium period of 18 months. In addition to primary security, the applicant may be required to provide a collateral security or a guarantee of Credit Guarantee Fund Scheme for Stand Up India Loans, as per bank's discretion.
Process of applying for a loan under Standup India scheme
To apply for a loan under the Standup India scheme, register yourself at the registration portal and fill up the loan application form. The completed form will then be forwarded to the lender chosen by you. Post that, you'll receive a feedback e-mail from the lender. You may then directly approach the lender, submit the required documents offline and get the loan sanctioned.
Documents required for loan application under Standup India scheme
An Identity proof (Voter's ID Card/PAN card/Driving License/Passport) Residential address proof Business address proof Startup's Incorporation Certification, MOA, AOA, last three years' balance sheets, and projected balance sheets for next two years Assets and Liabilities Statement of promoters/guarantors with latest I-T returns. Pollution control clearance certificate SC/ST certificate
