The Stand up India Scheme was introduced by the Government of India in order to offer credit services to SC/ST and women entrepreneurs. It was launched in the year 2016, and the Department of Financial Services regulates it. The bank offers a loan amount of 10 lakh INR to 1 Crore INR under the Stand up India Scheme to back a women entrepreneur in setting up a new business. This business can be either in the trading, services, or manufacturing sector.
The Main Features of Stand up India Scheme
- Loans offered under Stand up India Scheme can be utilized only by the SC/ST and women entrepreneurs to set up a new business.
- There aren’t any subsidies provided under this scheme.
- Besides primary security, the loan can be availed with collateral or a guarantee of CGFSIL (Credit Guarantee Fund Scheme for Stand-up India Loan).
- The Stand up India Scheme foresees 25 percent margin money that can be given in convergence with eligible State/Central schemes. Since such schemes might be intended to get an adequate subsidy or comply with margin money necessities, in every situation, the borrower will need to bring in at least 10 percent of the total project expense as their contribution.
What Is the Eligibility Requirement For A Business Loan For Women Under This Scheme?
- The age of the women entrepreneur should be at least 18 years.
- The borrower must not default on any loan provider or banking institute.
- For non-individual enterprises, 51 percent shareholding must be with the women entrepreneur.
Key Benefits of Stand up India Scheme for Women
- This scheme encourages and motivates budding entrepreneurs and creates employment opportunities in the country.
- It also supports the women entrepreneurs who are in the initial stages of their business and those who are in the midway of their undertaking.
- The Stand up India Scheme has its official site where women entrepreneurs can learn about start-up businesses in-depth. You can get online registration in order to obtain a business loan for women.
- It is projected that about 73 percent of women entrepreneurs do not receive financial support from Venture Capitalists. As per a study, nearly 90 percent of women are dependent on their own funds. On the other hand, 68 percent found it challenging to obtain a bank loan. The Stand up India Scheme has brought lots of changes to prevail over all these problems.
How Has This Scheme Impacted The Lives Of The Women Entrepreneurs And Others In India?
Even if, following the launch of this scheme, the country has experienced amazing changes in the working fields and unquestionably has proved advantageous for SC/ST and women. The Stand up India Scheme has created equivalence among the different classes living in the country.
As the financial growth has augmented, a few negative aspects can cause fiscal tensions. One significant drawback could be the irregularity of politically administered lending, accompanied by loans. The impacts of this scheme are considerable.
Today, more women are employed and financially stable than earlier. Many of them are taking part in various sectors, and both men and women are working together. Getting funding for a start-up business has now become very seamless and easier. The nation’s economy has also progressed, and it has witnessed poverty decline in many states. The younger generation is getting inspired, and more employment opportunities have also been created for them.
How to Apply Under Modi Scheme for Women’s Loan?
The women who are eager to apply for a business loan under the Pradhan Mantri Loan Scheme must fill up the Mudra Yojana application form. Here are the steps to apply for a Mudra loan:
- Visit the nearby bank that is registered under the Mudra loan scheme.
- Show the business idea or plan to the bank representatives.
- Submit a completed Mudra loan application.
- Provided documents like ID proof, residence proof, business address proof, sales tax, income tax returns, balance sheets, and caste certificates.
- Submit all the necessary documents along with the application form.
- If the applicant meets all the requirements, the loan will be approved.