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Stand-Up India Scheme

Stand-Up India Scheme. Objective

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Stand-Up India Scheme

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  1. Stand-Up India Scheme • Objective • The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a green field enterprise. • This 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 Woman entrepreneur. Access the Stand-Up India Home Page through www.standupmitra.in

  2. Stand-Up India Scheme • Eligibility • SC/ST and/or woman entrepreneurs, above 18 years of age. • Loans under the scheme is available for only green field project. Green field signifies, in this context, the first time venture of the beneficiary in the manufacturing or services or trading sector. Access the Stand-Up India Home Page through www.standupmitra.in

  3. Stand-Up India Scheme • Nature of Loan • Composite loan (inclusive of term loan and working capital) between Rs.10 lakh and upto Rs.100 lakh. • Purpose of Loan • For setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur. • Size of Loan • Composite loan of 75% of the project cost inclusive of term loan and working capital. The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrower’s contribution along with convergence support from any other schemes exceeds 25% of the project cost. The Stand-Up India portal is being operated and maintained by SIDBI

  4. Stand-Up India Scheme • Interest Rate • The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium). • Security • 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. • Repayment • The loan is repayable in 7 years with a maximum moratorium period of 18 months. The Stand-Up India portal is being operated and maintained by SIDBI

  5. Stand-Up India Scheme • Working Capital • For drawal of Working capital upto Rs.10 lakh, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower. • Working capital limit above Rs. 10 lakh to be sanctioned by way of Cash Credit limit. • Margin Money • The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution. • STAND-UP INDIA SCHEME WOULD BE OPERATED BY ALL THE BRANCHES OF SCHEDULED COMMERCIAL BANKS IN INDIA.

  6. Stand-Up India Scheme • Interest Rate • The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium). • Security • 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. • Repayment • The loan is repayable in 7 years with a maximum moratorium period of 18 months. The Stand-Up India portal is being operated and maintained by SIDBI

  7. Benefits of Stand Up India Portal 1. E-platform for getting all information on various handholding agencies and Banks at one place. 2. Online Submission of application for loan and access to handholding support, which would be monitored at district level by LDM/ DDM. 3. Submission of the application is linked with ADHAAR, reducing the possibilities for submission of multiple applications by one borrower. 4. Loan applications can be lodged from anywhere anytime across the country even from home computers. Access the Stand-Up India Home Page through www.standupmitra.in

  8. Benefits of Stand Up India Portal • The portal provides for market place for banks to access lendable projects, making a win-win position for banks and entrepreneurs. • Easy Tracking of the request made by prospective entrepreneurs. • Higher level of transparency from submission to resolution/ cancellation. • Easy monitoring of the implementation of the scheme on real-time basis by monitoring agencies. Access the Stand-Up India Home Page through www.standupmitra.in

  9. Responsibilities of Stakeholders • SIDBI: • To operate and maintain the Stand-Up India web portal • Arrange for handholding support for Trainee Borrowers • Liaise with banks for follow up in potential cases through LDM/SLBC • Coordinate with LDM for easing bottlenecks • Assist the SLBC and DLCC in reviews and monitoring • Participate in Stand-Up events organized by NABARD. Access the Stand-Up India Home Page through www.standupmitra.in

  10. Responsibilities of Stakeholders • NABARD: • Training of Trainers, LDMs, Bank officers for Stand-Up India • Arrange for handholding support for trainee borrowers • Liaise with banks for follow up in potential cases through the LDM • Coordinate with LDM for easing bottlenecks • Assist the SLBC and DLCC in reviews and monitoring • Organize events, as frequently as necessary and at least once in each quarter, for experience sharing etc. amongst stakeholders. Access the Stand-Up India Home Page through www.standupmitra.in

  11. Responsibilities of Stakeholders • LDMs: • Monitor progress of cases • Serve as contact point for SIDBI/NABARD for easing bottlenecks • Sensitize bankers on potential borrowers • Follow up with concerned regional/zonal office of the respective bank to ensure timely processing/ sanction of loans as per time frame specified in Code of Bank’s Commitment to Micro and Small Enterprises • Ensure that borrower’s requirement of handholding support is satisfied to the extent possible Access the Stand-Up India Home Page through www.standupmitra.in

  12. Responsibilities of Stakeholders • LDMs: • Convene DLCC meetings in the specified periodicity. • Participate in quarterly events with stakeholders organized by NABARD. • Bank Branches: • Help potential borrowers in accessing the portal • Process loan applications received online or in person Access the Stand-Up India Home Page through www.standupmitra.in

  13. Responsibilities of Stakeholders • Bank Branches: • In case of rejection, reason to be made known to borrower as stipulated in the Code of Bank’s Commitment to Customers • Grievance redressal at the bank level should be done in 15 days at the bank level as per Code of Bank’s Commitment to Customers. • Banks to put in place an internal mechanism for monitoring of scheme performance Access the Stand-Up India Home Page through www.standupmitra.in

  14. Roles of Handholding Agencies Access the Stand-Up India Home Page through www.standupmitra.in

  15. Roles of Handholding Agencies Access the Stand-Up India Home Page through www.standupmitra.in

  16. Roles of Handholding Agencies Access the Stand-Up India Home Page through www.standupmitra.in

  17. Roles of Handholding Agencies Access the Stand-Up India Home Page through www.standupmitra.in

  18. Thank You

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