In 2016, Prime Minister Narendra Modi launched Stand Up India Yojana, a scheme to empower entrepreneurs from two categories, who often find themselves at a disadvantage: women entrepreneurs and those belonging to Scheduled Castes and Scheduled Tribes. The aim of the Stand Up India Scheme is simple: to provide budding entrepreneurs the capital they need to start their own venture. The loan is affordable too as the interest rate applicable is the lowest that is offered by the bank for the category, not exceeding the tenor premium + 3% + MCLR.
How much can women borrow under the Stand Up India Scheme?
As a female entrepreneur, you can borrow an amount ranging from Rs.10 lakh to Rs.1 crore to start a greenfield project, which is a term used to denote your first business. You get a composite loan that includes a term loan and a working capital loan when you opt for the Stand Up India Scheme, up to 75% of the cost of your business idea. This is provided your contribution and that from other sources doesn’t exceed 25%.
How can a woman qualify to participate in the Stand Up India Scheme?
To qualify you must meet the following criteria:
- You must be a woman over 18 years of age.
- The idea for which you seek financing must be a greenfield project with services, manufacturing or trading forming a core function.
- If you want to apply as an enterprise, the controlling stake, that is 51%, should be held by a woman entrepreneur.
- You must not have any record of defaulting with a bank or any other financial institution.
Once you are sure that you qualify for this scheme, you can apply for it online at the Stand Up India Scheme’s website or in person at a bank branch. If you choose to apply online you have to register yourself and answer a few preliminary questions. If you are deemed to be a ready borrower you can fill the application form and then apply to your preferred lender. But, if you are adjudged as a trainee borrower you have to complete your training at a NABARD/SIDBI centre under the supervision of your Lead District Manager. Once he/she is satisfied, you can apply online.
To apply successfully you will also have to submit documents such as ID proof, proof of residence, articles of association of the company or the partnership deed, rent agreement if the office space has been leased as well as projected balance sheets for at least 2 years.
Another high-value loan option that you can opt for is a
So, if your business plan qualifies for a loan under the Stand Up India Scheme, gather your documents and apply right away. Use this scheme to your advantage to turn your entrepreneurial dream into reality.