Government Business Loans Scheme
If you are looking to start your business or don’t have funds to grow your existing business then this Review is for you. The government of India has launched the Stand-Up India Scheme to support entrepreneurs in growing their businesses. This scheme is a backbone for women entrepreneurs, and people in business from Scheduled Caste (SC), and Scheduled Tribes (ST) communities. Under this scheme, they can borrow Business loans from ₹10 lakh to ₹1 crore. Today I’ll help you with my experience and thoughts about the Business Loans Scheme.
Prime Minister Narendra Modi launched the Stand-Up India scheme launched on 5 April 2016 by Prime Minister of India Narendra Modi. This scheme is part of the government’s efforts to support entrepreneurship to help women or individuals from SC & ST communities start and grow their businesses. Under this scheme, both new and existing businesses are mapped to borrow loans up to 1 crore rupees, for the growth and expansion of their business. This loan will help fulfil various business needs like Equipment purchases, increasing manpower, expansion of own inventory or setting up a new inventory.
How the Business Loans Scheme Works
The Business Loans Scheme is an initiative by the Government to support for first-time business owners who are looking to start from Zero in sectors like Manufacturing, Trading, Services and many more. The key feature of this loan is a composite loan, which means it includes a “Term loan” that can be used for buying long-term assets like Machines and equipment and a “Working Capital Loan” which can be used to cover day-to-day operational expenses like Salaries, Bills, Rent, Marketing expenses and many more.
Also Read: “Kisan Samriddhi Rin Scheme“
Benefits of the Business Loans Scheme
- Loans between Rs 10 lakh to Rs 1 crore
- Rupay debit card for convenient access to funds
My Experience with the Business Loans Scheme
I found the scheme to be quite helpful:
- The loan covers 75% of the total project cost.
- The interest rate is low.
The loan can be repaid over 7 years, with a grace period of 18 months to get your business running smoothly.
Business Loans Scheme Eligibility
- Entrepreneurs willing to start a business from Zero are automatically eligible for this loan.
- The applicant must be from the SC/ST category or should have a woman entrepreneur holding a minimum of 51% of shareholding in the business.
- A person should not have any defaults with any bank or financial institution in past.
How to Apply for Business Loans
If you fulfil the eligibility criteria then you can apply for a loan under this scheme with the help of below points:
- You can visit your nearest bank branch either a private or government bank. You can locate your nearest bank branch using the RBI’s bank branch locator.
- You can connect with the Lead District Manager (LDM) of your district by visiting the link.
- You can also directly apply through the online StandUp Mitra portal by visiting the link.
Process
- Visit the StandUp Mitr portal and Register.
- Enter your business location details.
- Select your business category (SC, ST, Woman) and ownership stake.
- Choose the nature of your business, and loan amount, and provide a brief description of your business plan.
- Fill out details about your business premises and any past business experience.
- Indicate whether you require hand-holding support.
- Enter your personal details and business details.
- Click “Register” to complete the process.
Once registered, you will be eligible to initiate the StandUp India Loan Application process. The respective financial institution will contact you to complete the formalities.
Documents Required
- Proof of identity (voter ID, passport, driving license, PAN card)
- Proof of residence (utility bills, property tax receipt)
- Proof of business address
- Proof of not being a defaulter with any bank or financial institution
- Business registration documents (if applicable)
- Financial statements (if applicable)
- Projected balance sheets for the next two years
- Land/property documents (if applicable)
- Documents to establish SC/ST status (if applicable)
Disclaimer: This information is only for general guidance for those who are not aware of this scheme. Please consult with a qualified financial advisor before making any decisions about your business loan or visit your nearest bank.
