Header Ads

Modi Government's Stand Up India Scheme: 3 Things You Should Know

Finance is the key to turning any brilliant business idea into a successful enterprise. As a woman wanting to start a business, or as a member of a Scheduled Caste/Scheduled Tribe (SC/ST), you may find that finding the right source of funds is difficult, especially if you have no prior experience.

To empower you and give you the capital you need to start a business, the Government of India launched the Stand Up India loan scheme in 2016. Not only does this give you finance, it also does so affordably. Here are three things you should know about the scheme to be able to use it to the best of your ability.

What are the Stand Up India Scheme’s key benefits?

The main goal of this scheme is to provide a loan of a substantial amount to you to actualise your vision of being self-employed. It offers a high loan amount of Rs.10 lakh to Rs.1 crore, basis your business plan. It does so affordably too, as the interest rate applicable is the lowest of the bank for the category and can’t exceed the tenor premium + 3% + MCLR. You have up to 7 years to repay the amount that you borrow and you can avail a maximum moratorium period of 18 months.

Who can apply for the Stand Up India Scheme?

To qualify as a candidate, you have to meet certain criteria. Take a look at what they are.

  • You must be a woman and/or SC/ST member over 18 years of age.
  • Your business idea must fall under the services, trading or manufacturing sector.
  • The project you seek financing for must be a greenfield project, which means your first business venture.
  • If you are applying as an enterprise the controlling stake of 51% must be held by a woman or SC/ST entrepreneur.
  • You must have no record of defaulting with any financial institution.

How can you apply for the Stand Up India Scheme?
Applying for capital under this scheme is quite easy. You can do so in the below two ways.

At a bank: All scheduled commercial banks are part of the Stand Up India Scheme. So, you can visit one to initiate the process.

Through the portal: The Stand Up India Scheme has a website that makes applying very easy. Once you log on to it, the first step is to answer a few preliminary questions to determine whether you need training. These questions are usually on the following aspects.

  • Nature of the proposed business
  • Prior experience with managing a business
  • Availability of planned business premises
  • Your location of residence
  • Assistance needed to draft a business plan
  • Requirement of skills and training

Based on your answers, you will be categorised as a ready borrower or a trainee borrower. If you are a ready borrower, you can go ahead and fill-in the application form. But if you are a trainee borrower, the portal will inform you of the Lead District Manager (LDM) and a SIDBI/NABARD office. These centres will then address the areas in which you need assistance. You can seek financial training, mentoring, skill training and more. Once the LDM and you are satisfied with your level of training, you can apply for finance through the website by submitting the necessary documents.

To access finance instantly you can also choose a Bajaj Finserv Business Loan. It offers up to Rs.30 lakh on a collateral-free basis with speedy approval within 24 hours. You can qualify easily and you only have to submit two documents to apply. With pre-approved offers, you can get your loan application approved instantly.
With the right finance by your side, you’ll be able to hit the ground running when it comes to setting up a business of your own. So, make the most of what the Stand Up India Scheme has to offer and realise your dream of being a business owner.
Powered by Blogger.