Another Scheme with huge benefits for Entrepreneurs, “Standup India” as the name suggests is really empowering women and SC/ST.
This initiative is governed by Department of Financial Services (DFS), Ministry of Finance. Following are the features of this scheme:
- The range of loan is between Rs. 10 lakhs to Rs. 1 crore.
- The finance is given to at least 1 Scheduled Caste, one Schedule Tribe and 1 women entrepreneur per branch of every Scheduled Commercial bank. So, you must ask your bank for formalities for this loan before starting a project. In fact, you can apply through Standup Mitra portal as well, the link of which is https://www.standupmitra.in/Login/Register#NoBack
- The rates of interest are lower than market.
- The loan is given to cover up to 75% of the project cost. And it covers term loan as well as working capital.
- The amount is repayable in 7 years with maximum moratorium that is allowed is 18 months.
- The documents required are Identity proof, Residence proof, Business Address proof, Memorandum & Articles of Association, MSME registration certificate, if any, Certificate of Incorporation, documents in support of SC/ST status and Projected Balance Sheets for future years.
- The conditions are – the business or the owner must not be a defaulter of any bank and it must be a Greenfield project. “Greenfield” here means starting from the scratch. No prior work should have been done on the idea. For example- setting up a new factory, power plant or a new software.
So, in the series, you must have got an idea that government is getting soft loans have become easy now-a-days. What matters is the right approach at right place. We will be covering various other government schemes which are beneficial for you as an entrepreneur. So stay tuned.
