The Stand-up India scheme was launched by the Government of India on 5th April 2016. The main objective of this scheme was to provide funding for women entrepreneurs and lower-class people. So that they can enhance their abilities. This service was administered under DFS (Department of Financial Services).
Today in this article we will give you all the information related to the Stand-up India scheme which is very important for you to know. Please read this article completely and know what is Stand-up India scheme is and what are its benefits.
What is the Stand-up India Scheme?
The Stand-up India Scheme is launched by PM Narendra Modi to support grassroots entrepreneurs by providing financial assistance of Rs.25 lakh to 3,038 entrepreneurs and creating a corpus of Rs.1,636 crore in the first phase.
Under the scheme, you can also avail tax benefits for investments made towards setting up a small business and seek loans to create employment. What are the criteria for receiving financial assistance under the scheme? The financial assistance of Rs 25 lakh will be provided as a grant to eligible people.
A total of 150 per cent of the grant will be provided for setting up a small enterprise. Here’s what is required: Entrepreneurs need to clear a total of 75 per cent of the sops that are meant for SMEs in the first phase.
How does the scheme work?
The Stand-up India Scheme aims at providing startups with access to capital, including debt, from institutional sources. The scheme also supports startups and facilitates management training, acceleration and mentorship programs.
There are three components to the scheme: The Stand-up India Credit Guarantee Scheme (SGCS) The scheme is a partnership between the government and the private sector. The government provides credit guarantees to banks which can then provide loans to startups with the guarantee.
This would be done through project finance instruments and thereby ease the liquidity crunch for startups. The government has already allocated Rs 650 crore for the scheme.
Stand-up India Scheme Loan Details – 2021
|Interest Rate||Bank’s MCLR + 3% + tenor premium|
|Minimum age criteria||18 years for SC/ST and women entrepreneurs|
|Loan Amount||Between Rs. 10 lakh and Rs. 1 crore|
|Loan offer for||Greenfield projects only (first-time venture)|
|Repayment Period||7 years with a maximum moratorium period of 18 months.|
|Shareholding Stake||51% for non-individual enterprises|
|Borrower’s financial repayment status||Never defaulted to any Bank or NBFC|
|Margin Money||Maximum 25%|
|Working Capital Limit||Up to Rs. 10 lakh in form of Cash Credit limit|
Also Read:- Types of Government Jobs in 2021 and What are Group A, B, C, and D Employees get Benefits
Who are eligible to apply for the scheme?
The scheme is open for residents between 18-35 years and will offer them a full-time job for a period of two years. The qualifying job requirements: The job has to be a fixed-term post and not a contract one.
The candidate will have to have a minimum of Class 12 and up to 5 years post-graduation. The applicant will have to have secured a salary of Rs 15,000 per month as per the government norms. The selected candidates will get an EMIs for their house rent, insurance coverage, home loan, educational expenses and other ancillary costs.
How much will they get for the job? The selected candidates will get a cash grant of Rs 25,000 per month for the first 90 days, followed by Rs 12,000 per month for the next 90 days. How to apply for the scheme?
Who can’t apply for the scheme?
Any person who holds any office of profit or trust in any “public body or autonomous or semi-autonomous institution” or “public servant” and has previously been convicted for any offence punishable with imprisonment up to two years or more is ineligible for the scheme.
What is the main aim of the scheme? The scheme is aimed at increasing employment opportunities in the country. Which industries are eligible under the scheme? All sectors are under the government’s purview, except the defence sector.
What is the selection process? Applications for the scheme will be accepted on a first-come, first-served basis and candidates will be selected through a lottery. How do I apply for the scheme? Step 1: Go to the official website. Step 2: Click on ‘apply now.
To ease the procedure for trade and business with other nations, Prime Minister Narendra Modi has launched a stand-up India scheme that will take the country towards a 20 trillion dollar economy by 2025.
This massive initiative will mainly benefit the small traders, entrepreneurs and youths who will be eligible for making business deals. Started in June 2015, the initiative aims to ensure that every Indian and every Indian enterprise can prosper and that government, too, can encourage entrepreneurship.
This scheme is set to put India on a high growth trajectory and transform the lives of small traders, small industries, micro, small and medium enterprises. The scheme will take a year to complete.