In recent past, Government has launched many schemes to push and support start-ups in India. One of such scheme is Stand-Up India Scheme.
What is the objective of the Scheme
The objective of the scheme is provide funding anywhere between INR 10 Lakhs-INR 1 crore to Schedule Caste, Schedule Tribe and one women per branch for setting up a greenfield enterprise. The enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or women entrepreneur.
What is the Eligibility of this Scheme
SC/ST or women entrepreneurs above 18 years of age
Loans under the scheme is available for only green filed project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector.
In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or/Women Entrepreneur.
Borrower should not be in default to any bank/financial institution.
What Kind of Collateral is Required
Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund scheme for Stand-up India Loans (CGFSIL) as decided by the banks