Stand-up-India Scheme material for beginners

Start-up Ecosystem

1. Start Up India program Stand Up India Program
Launched on Jan 16, 2016 Launched on April 8, 2016
Equity based financing Loan based financing
Delivery through equity funds Delivery through banking network
Target beneficiary : all, irrespective of
gender or caste.
Target beneficiary : SC / ST / Women
No such condition. 51% share holding should be with the
target group.
No such criteria. Composite Loan
Focus on removing obstaclesFocus on enabling finance
Website address :
Startupindia.gov.in
Website address :
www.standupmitra.in
Contact e mail ids:
[email protected]
Contact e mail ids:
[email protected];
[email protected].

2. Stand-Up India Scheme
Access the Stand-Up India Home Page through www.standupmitra.in
Objective
 The objective of the Stand-Up India scheme is to
facilitate bank loans between Rs.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 green field enterprise.
 This enterprise may be in manufacturing, services or
the trading sector. In case of non-individual enterprises
at least 51% of the shareholding and controlling stake
should be held by either an SC/ST or Woman
entrepreneur.

3. Stand-Up India Scheme
Access the Stand-Up India Home Page through www.standupmitra.in
Eligibility
 SC/ST and/or woman entrepreneurs, above 18 years
of age.
 Loans under the scheme is available for only green
field project. Green field signifies, in this context, the
first time venture of the beneficiary in the
manufacturing or services or trading sector.

4. Stand-Up India Scheme
The Stand-Up India portal is being operated and maintained by SIDBI
Nature of Loan
 Composite loan (inclusive of term loan and working capital)
between Rs.10 lakh and upto Rs.100 lakh.
Purpose of Loan
 For setting up a new enterprise in manufacturing, trading or
services sector by SC/ST/Women entrepreneur.
Size of Loan
 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.

5. Stand-Up India Scheme
The Stand-Up India portal is being operated and maintained by SIDBI
Interest Rate
 The rate of interest would be lowest applicable rate of the
bank for that category (rating category) not to exceed (base rate
(MCLR) + 3%+ tenor premium).
Security
 Besides primary security, the loan may be secured by collateral
security or guarantee of Credit Guarantee Fund Scheme for Stand-Up
India Loans (CGFSIL) as decided by the banks.
Repayment
 The loan is repayable in 7 years with a maximum moratorium
period of 18 months.

6. Stand-Up India Scheme
Working Capital
 For drawal of Working capital upto Rs.10 lakh, the same may
be sanctioned by way of overdraft. Rupay debit card to be issued for
convenience of the borrower.
 Working capital limit above Rs. 10 lakh to be sanctioned by
way of Cash Credit limit.
Margin Money
 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.
STAND-UP INDIA SCHEME WOULD BE OPERATED BY ALL THE
BRANCHES OF SCHEDULED COMMERCIAL BANKS IN INDIA.

7. Stand-Up India Scheme
The Stand-Up India portal is being operated and maintained by SIDBI
Interest Rate
 The rate of interest would be lowest applicable rate of the
bank for that category (rating category) not to exceed (base rate
(MCLR) + 3%+ tenor premium).
Security
 Besides primary security, the loan may be secured by collateral
security or guarantee of Credit Guarantee Fund Scheme for Stand-Up
India Loans (CGFSIL) as decided by the banks.
Repayment
 The loan is repayable in 7 years with a maximum moratorium
period of 18 months.

8. Benefits of Stand Up India Portal
Access the Stand-Up India Home Page through www.standupmitra.in
1. E-platform for getting all information on various
handholding agencies and Banks at one place.
2. Online Submission of application for loan and access to
handholding support, which would be monitored at district
level by LDM/ DDM.
3.Submission of the application is linked with ADHAAR,
reducing the possibilities for submission of multiple
applications by one borrower.
4.Loan applications can be lodged from anywhere anytime
across the country even from home computers.

9. Benefits of Stand Up India Portal
Access the Stand-Up India Home Page through www.standupmitra.in
5.The portal provides for market place for banks to access
lendable projects, making a win-win position for banks and
entrepreneurs.
6.Easy Tracking of the request made by prospective
entrepreneurs.
7.Higher level of transparency from submission to resolution/
cancellation.
8.Easy monitoring of the implementation of the scheme on real-
time basis by monitoring agencies.

10. Responsibilities of Stakeholders
Access the Stand-Up India Home Page through www.standupmitra.in
SIDBI:
 To operate and maintain the Stand-Up India web portal
 Arrange for handholding support for Trainee Borrowers
 Liaise with banks for follow up in potential cases through
LDM/SLBC
 Coordinate with LDM for easing bottlenecks
 Assist the SLBC and DLCC in reviews and monitoring
 Participate in Stand-Up events organized by NABARD.

11. Responsibilities of Stakeholders
Access the Stand-Up India Home Page through www.standupmitra.in
NABARD:
 Training of Trainers, LDMs, Bank officers for Stand-Up India
 Arrange for handholding support for trainee borrowers
 Liaise with banks for follow up in potential cases through the
LDM
 Coordinate with LDM for easing bottlenecks
 Assist the SLBC and DLCC in reviews and monitoring
 Organize events, as frequently as necessary and at least once in
each quarter, for experience sharing etc. amongst stakeholders.

12. Responsibilities of Stakeholders
Access the Stand-Up India Home Page through www.standupmitra.in
LDMs:
 Monitor progress of cases
 Serve as contact point for SIDBI/NABARD for easing bottlenecks
 Sensitize bankers on potential borrowers
 Follow up with concerned regional/zonal office of the respective
bank to ensure timely processing/ sanction of loans as per time
frame specified in Code of Bank’s Commitment to Micro and Small
Enterprises
 Ensure that borrower’s requirement of handholding support is
satisfied to the extent possible

13. Responsibilities of Stakeholders
Access the Stand-Up India Home Page through www.standupmitra.in
LDMs:
 Convene DLCC meetings in the specified periodicity.
 Participate in quarterly events with stakeholders organized by
NABARD.
Bank Branches:
 Help potential borrowers in accessing the portal
 Process loan applications received online or in person

14. Responsibilities of Stakeholders
Access the Stand-Up India Home Page through www.standupmitra.in
Bank Branches:
 In case of rejection, reason to be made known to borrower as
stipulated in the Code of Bank’s Commitment to Customers
 Grievance redressal at the bank level should be done in 15 days
at the bank level as per Code of Bank’s Commitment to
Customers.
 Banks to put in place an internal mechanism for monitoring of
scheme performance

15. Roles of Handholding Agencies
Access the Stand-Up India Home Page through www.standupmitra.in
Areas of
Expertise
Agencies
Involved
[Examples]
Role of Agency
Skilling
(Vocational)
ITI/ITC To impart accredited training in job related
and technical skills. It covers various industries
and technology as per the needs of
entrepreneur.
Financial
Training
Financial
Literacy
Centres
promoted by
Banks
These centres extend credit counseling to the
entrepreneurs and facilitate in developing
creditworthy proposals. They provide
education on financial planning, responsible
borrowing, debt counseling etc. They educate
about various financial products available in
the formal financial sector.

16. Roles of Handholding Agencies
Access the Stand-Up India Home Page through www.standupmitra.in
Areas of
Expertise
Agencies
Involved
[Examples]
Role of Agency
Entrepreneurship
Development
Programmes
(EDPs)
RSETI and EDI
and Tool
Rooms
EDPs nurture the talent of prospective
entrepreneurs by educating them on various
aspects of industrial activities required for
setting up a business. The programme
provides useful information on product,
process, design, manufacturing practices,
testing, quality control, selection of
appropriate machinery, project profile
preparation, marketing techniques and
financial management.

17. Roles of Handholding Agencies
Access the Stand-Up India Home Page through www.standupmitra.in
Areas of
Expertise
Agencies
Involved
[Examples]
Role of Agency
Mentoring Industry
Association &
Chambers
Mentoring is a process for the informal
transmission of knowledge, social capital and
psychosocial support perceived by the
recipient as relevant to work, career or
professional development. It is a voluntary
process by experienced persons to guide an
entrepreneur in business and related decision
making process.
Work shedsDistrict
Industries
Centre (DICs)
District Industries centres facilitate allotment
of plot/shed in the industrial estate in specific
area.

18. Roles of Handholding Agencies
Access the Stand-Up India Home Page through www.standupmitra.in
Areas of
Expertise
Agencies
Involved
[Examples]
Role of Agency
Application
Filling/Project
Report
Preparation
NGOs/Voluntary
Organisations/
Professionals and
Lead
Banks/Skilling
(Vocational)/Finan
cial Training/DICs
These agencies may facilitate
entrepreneurs in filling up the loan
applications and prepare project which
broadly covers product, process, market
and viability of the business.
Margin Money
or Subsidy
KVIC/KVIB/State
Govt. /Central
Govt. Bodies/DIC
These agencies will provide information
and guidance support on availing range of
subsidies/ margin money schemes that are
available.

19. Thank You Thank You