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Launched on 5th April, Stand Up India is a new initiative by the Government of India for the schedule caste, backward tribes & women. It is basically a loan scheme to provide financial assistance to lower sections of the country. The stand up India scheme also promotes entrepreneurship and employment among SC/ST and women.
Main objective of Stand Up India Loan Scheme
The main objective of the scheme is to provide financial aid to SC/ST and women to promote entrepreneurship and employment in the country. The financial aid will be provided to set up and grow businesses to SC/ST and women in need. The initiative will also encourage young minds to come up with innovative ideas and create job opportunities in the country.
Amount of Financial Aid
The loan amount aid under the scheme would vary between Rs. 10 lakh to 1 Crore. The initiative will allow and enable under-served to utilize the institutional credits in the form of bank loans. Under the Stand Up India initiative, RuPay debit cards will be issued to the borrowers to withdraw the money/capital for operations.
The funds allocated under the scheme will help borrowers start their ventures and overall grow the economy of country. Other than the financial aid, the government will also help eliminate the legal and operational hurdles for entrepreneurs under the scheme.
How to enroll/apply for Stand Up India Loan
Central government may launch a dedicated web portal soon where the interested candidates can apply online for the loan under Stand Up India scheme. A self certification system will also be launched for the same purpose. The interested applicants can fill the online application forms by filling all the required data such as personal details, proposed business details etc.
The applicants will be required to submit their plan of action along with the legal documents to validate their loan requirements.
Eligibility Criteria for Stand Up India Loan Scheme
Government plans to reach out a maximum people and provide financial aid to start their businesses. But, it will not be feasible to provide loans to everyone. The applicants will be required to abide the rules and guidelines of the stand up India scheme. The designated team will review all the loan applications and approve only those showing true need and potential of success.
The basic eligibility criteria for stand up India scheme is
- The company should be a private limited/LLP or a partnership firm.
- The age of the company/firm should not be more than 5 years.
- The annual turnover of the company should not exceed Rs. 25 Crore.
- A company dealing with commercial goods or innovating consumer products with approval from DIPP (Department of Industrial Policy & Promotion) will only be eligible for the loan.
- The company should also produce few more letters/documents at the time of application.
Benefits of Start up India Scheme
The stand up India loan scheme will benefit four kinds of individuals mainly angel investor, incubator, consultant and entrepreneurs. The scheme gives right platform to everyone and grow their businesses.
Start up India provides professional advice, time, and knowledge about laws to the angel investors and aid for initial two years of the first stage of the scheme. An incubator will get right coaching and expertise knowledge to shape their ideas and thoughts into a definite shape and structure.
The main benefit is for the loan borrowers, they need not to worry so much about paying back the loan amount. The borrowers will be given a time of up to 7 years to pay the loan amount. The loan borrower also have the freedom to choose the amount to be paid back per month.
Tax benefits under Stand Up India Scheme
The government will provide 80% rebate on patent filing fee under the scheme if the patent is filed by a startup. The scheme includes Credit Guarantee Fund and entrepreneurs need not to pay any income tax for the first 3 years. This will help startup grow at even faster pace without worrying about paying heavy taxes.
Interest Rates Under Stand Up India Loan Scheme
For sure, the loan under Stand Up India scheme will be provided at interest rate less than any other commercial loans provided by the financial institutions. The low interest rates charged to the borrowers will also help reduce the burden of paying back the loan amount. The interest rate may also depend upon the loan amount which vary between Rs 10 Lakh and 1 Crore.
Funding under the scheme
Initially, the central government of India has approved Rs. 10,000 Crores for the scheme. The funds will be allocated to the under privileged to encourage the innovative ideas.
Key features of Stand Up India Loan Yojana
- The stand Up India initiative aims to support 2.5 lakh Women and SC/ST entrepreneurs to set up and grow their businesses.
- The government has set a target sanction 2.5 lakh loans in a time frame of 36 months.
- The scheme will provide 100% relaxation in income tax for startups for first 3 years.
- The loan application process and licensing process is to be automated for quick actions and faster approval.
- The government will launch dedicated website and application to help interested candidates.
- Financial aid amount for the startups will vary between Rs. 10 Lakh to 1 Crore.
- 80% rebate on the patent application fee will be refunded to the the entrepreneurs.
- The exit process only takes 90 days to wind up the entire process.
- More than 5 lakh schools across the country will be covered under the program to promote innovation core programs.
Helpline for Start up India
At present, there is no dedicate support team to help interested candidates regarding the scheme. However, more information about the initiative can be obtained by calling to concerned group at 011 40540722.