Acquiring a loan, especially for a new business, can be quite challenging, and even if it is available, the interest rate is often high. Fortunately, the Stand Up India Loan Scheme was introduced in 2016 to address this problem. This article discusses:
Watch Explainer Video in Hindi
Stand Up India Loan Scheme: Features & Benefits
First-time entrepreneurs often find it challenging to acquire a loan due to the lack of business history. However, this scheme offers loans of up to Rs. 1 crore at a minimum interest rate to first-time entrepreneurs. The loan application process is transparent and easy since it can be completed entirely online.
Unlike the PMEGP scheme, the Stand Up India Loan is available for any type of business and entity, such as manufacturing, service, agro, or trading sectors. The business can be a proprietorship, partnership, or company. If it is a non-individual organization, at least 51% of its shareholding and control should be held by either an SC/ST or a women entrepreneur.
Here are some essential features of the scheme
| Nature of Loan | A composite loan that includes both a term loan and a working capital loan up to 85% of the total project cost can be applied for |
| Loan Amount | From Rs. 10 lakh to Rs. 1 crore |
| Interest rate | The applicable lowest interest rate of bank for this category not exceeding (base rate + 3% tenor premium) |
| Security | Other than Primary Security, Loan may also be secured by a collateral security or a Guarantee by Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL) |
| Repayment of Loan | The loan is to be repaid in 7 years with a maximum moratorium period of 18 months |
| Working Capital | For Withdrawal:
1. Upto 10 Lakhs – Overdraft Facility. 2. Above 10 Lakhs – Cash Credit Facility. (RuPay debit card will be provided for the convenience of the borrower) |
| Margin Money | 15% of the project cost must be brought in by the owner as margin money, which may be drawn by availing other schemes, but in all such cases, the owner must bring in a minimum 10% of the project cost as his own contribution. |
Eligibility Criteria
The loan under this scheme is available to SC/ST or Women entrepreneurs above 18 years of age who are starting a business for the first time and have no default record.
How to apply for a Stand Up India Loan online
You can apply for the Stand Up India loan directly at the concerned bank or through the lead District Manager, or you can apply online through the SIDBI Stand Up India Portal.
To apply online, visit the Stand Up India Portal at https://www.standupmitra.in/ and click on “Apply for Loan.” You will be redirected to the New Registration Page, where you must enter your Full Name, Email address, and Phone number and click on “Generate OTP,” and submit the same.
Once you have registered on the website, you will need to submit some basic personal details such as your name, contact information, residential address, gender, education qualifications, annual income, etc. After filling in the basic information, click on “Apply Now” under Loan Application Centre.
You will then have the option to select the type of loan you want to avail of. Select and click on Stand Up India: Loans above 10 Lakhs up to 1 crore. Fill out the application form, starting with the loan amount you want to avail.
Now, let’s see how to fill each and every requirement of the application form in detail:
Business Information:
| Sr. No. | Requirement | How to fill |
| 1 | Enterprise Name | Fill in the Business’s Name |
| 2 | Constitution | Here you should select whether your business is a sole proprietorship, partnership, LLP, or a registered company. |
| 3 | State/District/City | Choose your State, District, and City. |
| 4 | Address/ Pincode | Enter the official address of your business |
| 5 | Website of Company | Enter the URL of your company’s website, if any. |
| 6 | Available space for Business | Here from the drop-down menu, choose whether the space of your business is Owned, Rented, or Leased. |
| 7 | E-mail/Mobile No./Telephone No. | Enter your valid email id & phone numbers |
| 8 | Enterprise PAN No. | Enter your Business’s PAN no. In case you don’t have a Business PAN, you can enter your personal PAN no. |
| 9 | New Business Enterprise | Select ‘Yes’ from the drop-down menu. |
| 10 | First Time Entrepreneur | If it’s your first business, then select ‘Yes’ in this field. |
| 11 | Commencement date | Enter the date on which you started the operations of your new Business. |
| 12 | Industry Type | Select the industry type among Manufacturing, service, agriculture allied, and trading sectors. |
| 13 | Industry Group | Select the suitable industry group as per your business. |
| 14 | Proposed Business | Select the appropriate category as per your business. |
| 15 | Product | Add the Products that you are going to produce or services that you will provide. |
| 16 | Whether Unit is registered? | If your unit is registered under any Legal Act, then check this box and provide the details as required. |
Now, click on “Save My Details” and click ‘Next’. Now you need to fill up more detailed information about your loan, for which we will first need to prepare our Project Report.
How to make a project report for Stand Up India Loan
In the loan application, a well-prepared project report is crucial. Use fortriskconsulting.com’s Project Report Software to create a detailed project report.
Simply enter here your business details, select Stand Up India Loan from the dropdown menu, and provide owner details, work experience, educational qualifications, and the number of employees you plan to hire.
Next, give the breakup of assets you’ll buy from the term loan, like machinery, furniture, computers, etc., and the working capital amount you need. On the fourth page, enter your estimated monthly expenses, including stock purchases, rent, electricity, and salaries.
That’s it, and now the software will automatically prepare a Project Report for you. Click the download button, and you will get a complete Project Report with Profit & Loss A/c, Balance Sheet, Cash flow Statement, DSCR working, etc. Check the report, and you can also edit the data as per your projections and estimates.
Now Let’s see how to fill the “Other Information” section of the Stand Up India Loan application with the assistance of fortriskconsulting.com’s project report.
- Credit Facilities Proposed:
Provide the total loan amount and the value of the primary security, which is the value of assets that will be purchased from the loan amount, as mentioned in the project report. If additional collateral security, such as property or FD, is being provided, provide its details as well. Lastly, enter the number of employees you plan to hire to run the business.
2. Future Estimates:
In this section, enter the yearly projected sales, profit, and owner’s net worth values. This data is already calculated by our software and can be found in the projected income statement and balance sheet of the downloaded project report.
3. Banking with Working Capital: Basis of Cash Credit Limit Applied:
This data is automatically calculated by the portal based on the projected sales value. If the CC limit is lower than required, you can modify the values to match those in the downloaded project report.
Other required information, such as the proprietor’s background information, existing banking facilities, preferred lender, etc., should be filled out as appropriate. Once you have filled out all the necessary details, save your information and click Next.
Documents Required for Stand Up India Loan
Upload documents such as ID proof, address proof, photo, etc. You can also upload the project report created on our website in the “Projected B/S” and “Proposed Project Report” sections. Once you have uploaded all the required documents, check and agree to the “Declaration and No Objection” clause, and click on “Submit My Details.”
That’s it! Your application is now complete and ready to be submitted to apply for Stand Up India Loan. With the help of Fortrisk Consulting’s Project Report, you can easily apply for this loan online in no time. If you have any queries regarding the application process, please let us know in the comment section, and we will try to resolve them as soon as possible.