The Stand up India scheme primarily aims towards the upliftment of scheduled castes, scheduled tribes and women entrepreneurs with requisite financial assistance for nascent business ventures. People can avail a business loan under this scheme for setting up a Greenfield enterprise.
It’s been more than two and a half years since the launch. Standing in the present day, this particular scheme continues to give the much necessary impetus to innovation and entrepreneurship. Several important factors are responsible for making this venture a success.
The initiative of this portal considering is a sincere endeavour to create a stable ecosystem of positive financial assistance. These advances under are beneficial to encourage new business ideas in the country. With high-value business loans, NBFCs like Bajaj Finserv have also come forward to promote entrepreneurship, especially among individuals or communities who lack the necessary financial backup.
Below listed are the significant factors designed to help budding entrepreneurs flourish:
I. Loan amount
According to the proposal of Stand up India scheme, borrowers can avail funds for their business ranging between Rs. 10 Lakh and up to Rs. 10 Crore. The borrowers can utilise this sanctioned amount for non-farm Greenfield projects. These advances are available for setting up your own trading business or a manufacturing or servicing business.
II. Convenient repayment tenor
The maximum loan repayment tenor is 7 years. So, borrowers will get a flexible schedule to clear the debts while aligning their finances accordingly. The repayment schedule for this scheme also includes a moratorium period, which can be extended till 18 months.
III. Credit monitoring service
This program is designed with farsighted vision thinking about the maximum welfare of borrowers. The Government of India and Credit Bureaus simultaneously monitor credit histories of borrowers. This will eventually help them build a sound credit rating with timely repayment.
Thus, it’s an excellent service to boost these small-scale business owners’ financial growth. Additionally, it will be easier for them to avail a loan later on with a sound credit score.
IV. Mentoring service
The government has also focused on empowering people with an entrepreneurial spirit; especially for those who belong from the weaker sections of the society. Furthermore, a special advisory body has been established for mentoring the right business and funding ideas for women. So, apart from initial hand-holding with financial assistance, the scheme also equally emphasises to make the borrowers business-ready.
V. Eligibility criteria
Stand up India scheme also comes with a few easy-to-meet eligibility criteria to fasten the loan availing process. Borrowers need to be at least 18 years of age at the time of application. Secondly, people must not have any prior history of payment defaults. In case of a non-individual enterprise, the borrowers should have a minimum of 51% shareholding and controlling stake on it.
Financial assistance for entrepreneurs
The emergence of NBFCs and this to be apply for Stand up India scheme has rekindled the entrepreneurial scenario of India. People are getting a plethora of benefits from both reputable financial institutions including NBFCs. For example, NBFCs proffer unsecured loans which do not require collateral further easing up the process.
This is a milestone achievement in the lending landscape of India. India now ranks 3rd globally when it comes to start-ups and small-scale industries after the launch of Stand up India scheme. Furthermore, with the surfacing of NBFCs and their beneficial features, this scheme has witnessed an overwhelming success.
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