Standup India is basically a loan scheme. And the main target of the scheme is to help minority communities and the women. There are many women who want to be entrepreneurs but due to lack of funds, they have to back out. Standup India will reduce this problem.
Under the scheme, if women or the SC/ST communities want to start up a firm, they can go for a loan. The loan amount can be anywhere between 10 lakhs and 1 crores.
Who is Eligible for the Standup India Scheme?
- Either the person should be a SC/ST or a woman.
- The minimum age to apply for the scheme is 18 years.
- The loan covers only green field ventures. This means that only those people who are investing in a firm for the first time will get the loan.
- There is an option to start the firm jointly. But then the loan-taker should hold at least 51% of the shares.
- In case the person applying for the loan is a defaulter in any of the banks, he/she may not approve for the Standup India loan.
What is the Need of Standup India Scheme?
- Currently, SC/ST and women do not participate much in entrepreneurship. The reason is not that they lack skills. Only because they do not have adequate funds, they are not able to do so. The Standup India will try to eliminate this problem. And then SC/ST and women can start up their own firms if they want to.
- The scheme will encourage women to be entrepreneurs.
Also read : Pradhan Mantri Mudra Yojana
Key Features of the Standup India Scheme
- The scheme will try to start 2 projects per bank branch. So, a large number of people will get the benefits of the scheme.
- The government is trying to reach a target of up to 2.5 lakh approvals by the time scheme completes 3 years.
- The scheme does not end at giving the loan money to the borrowers. In fact, if the entrepreneurs need any help at any stage of the project, they may approach the authorities. No matter it is the pre loan stage or the ongoing stage, they can ask for help.
- The borrowers can pay back the loan till a time period of 7 years. This gives them ample time to come up with perfect business strategies.
How to Apply for the Standup India Scheme
- First of all, you need to make sure that you are eligible for the loan.
- At the concerned banks which are providing the scheme, government will provide the forms.
- People will need to visit the bank branch and collect the form from there.
- Then they need to fill up the form and submit it.
They might need to talk to the bank authorities and explain their venture. After that, they will get an approval within no time. The government is also planning to launch a web portal for the Standup India Scheme so that people can see the status of their applications online.
If you have any queries regarding the scheme, please let us know through the comments section below.