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 Target beneficiary : SC / ST / Women

gender or caste.
No such condition. 51% share holding should be with the
target group.
No such criteria. Composite Loan

Focus on removing obstacles Focus on enabling finance

Website address : Website address :

Startupindia.gov.in www.standupmitra.in
Contact e mail ids: Contact e mail ids:
dipp-startups@nic.in support@standupmitra.in;
help@standupmitra.in.
 Stand-Up India Scheme

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.

Access the Stand-Up India Home Page through www.standupmitra.in

 Stand-Up India Scheme

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.

Access the Stand-Up India Home Page through www.standupmitra.in

 Stand-Up India Scheme

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.
The Stand-Up India portal is being operated and maintained by SIDBI
 Stand-Up India Scheme

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.

The Stand-Up India portal is being operated and maintained by SIDBI

 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.
 Stand-Up India Scheme

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.

The Stand-Up India portal is being operated and maintained by SIDBI

 Benefits of Stand Up India Portal

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.

Access the Stand-Up India Home Page through www.standupmitra.in

 Benefits of Stand Up India Portal

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.

Access the Stand-Up India Home Page through www.standupmitra.in

 Responsibilities of Stakeholders

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.

Access the Stand-Up India Home Page through www.standupmitra.in
 Responsibilities of Stakeholders
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.
Access the Stand-Up India Home Page through www.standupmitra.in
 Responsibilities of Stakeholders
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
Access the Stand-Up India Home Page through www.standupmitra.in
 Responsibilities of Stakeholders
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

Access the Stand-Up India Home Page through www.standupmitra.in

 Responsibilities of Stakeholders
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

Access the Stand-Up India Home Page through www.standupmitra.in

 Roles of Handholding Agencies

Areas of Agencies Role of Agency

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

Access the Stand-Up India Home Page through www.standupmitra.in

 Roles of Handholding Agencies

Areas of Agencies Role of Agency

Expertise Involved
[Examples]
Entrepreneurship RSETI and EDI EDPs nurture the talent of prospective
Development and Tool entrepreneurs by educating them on various
Programmes Rooms aspects of industrial activities required for
(EDPs) 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.

Access the Stand-Up India Home Page through www.standupmitra.in

 Roles of Handholding Agencies

Areas of Agencies Role of Agency

Expertise Involved
[Examples]
Mentoring Industry Mentoring is a process for the informal
Association & transmission of knowledge, social capital and
Chambers 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 sheds District District Industries centres facilitate allotment
Industries of plot/shed in the industrial estate in specific
Centre (DICs) area.

Access the Stand-Up India Home Page through www.standupmitra.in

 Roles of Handholding Agencies

Areas of Agencies Role of Agency

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

Access the Stand-Up India Home Page through www.standupmitra.in

Thank You