Loan Under Stand Up India Scheme
Survey says that most of the start ups failed because of the weak financial backups. Efficient business plans cannot be implemented due to crisis in financial end. Stand up India is definitely a smart initiative to encourage the start ups in the country. As we know that the loan is for the people who live under scheduled caste and tribal group, women who are widower and such. Union Cabinet ministry said that expectedly 2.5 lakh borrowers will be benefited from this scheme.
Released fund for loans
- According to the Union Cabinet Minister, government has already released INR 10, 000 crores to refinance the widow entrepreneurs through SIDBI and NCGTC. It was said to be an initial amount to start the venture which means the amount can go beyond the mentioned limit.
- For the scheduled caste and schedule tribes along with women entrepreneurs will get loan of minimum 10 lakhs and maximum of 100 lakhs by institutional credit structure. However the loan is payable to the applicants is only for the start-ups that fall under non-farm sectors.
Time of repayment
The repayment time for the loan is up to 7 years which is quite better unlike other schemes.
How to get the loan
There will be an online portal where applicants can register their names and nature of business. Of course there will be some more documents like ID, PAN and such must be submitted before applying for the loan.
Authorised Banking Centres
- According to the reports Small Industries Development Banks of India and National Bank for Agriculture and Rural Development are the two leading connecting banks that will operate the dos and don’ts under the stand up India scheme.
- State Bank of India is also providing loan for stand up India as the organisation has joined the stand up India scheme as a partner.
- Other than these mentioned banks there are more than 1.25 lakhs bank branches through which the scheme operates.
Taxation on the given loan
- As per the guidelines of the stand up India loan facility, the applicant who is borrowing the loan will be exempted from Income Tax for next three years from the time of receiving the loan.
- The applicants will also be exempted from capital gain tax.
- Also the rate of interest will be very low compare to other loans.
State-wise fund investment
As of now the southern part of the nation has shown incredible performance in funding start ups.
- Kerala – the most developed state has successfully managed to invest INR 50 billion in country’s start-up structure.
- Andhra Pradesh has created INR 100 crores group to finance the new emerging entrepreneurs in the state.
- Madhya Pradesh government has disbursed INR 200 crores through SIDBI.
- The other states that have joined the stand up India include Karnataka, Rajasthan, Maharashtra and so on.
Along with launching the stand up India scheme, shree Narendra Modi had launched 5100 e-rickshaws for the backward people. This is a part of Micro Credit.
Stand up India Loan Quick Over View :
|Amount of loan||10 lakhs to 1 crore|
|Amount of Refinancing for widow||10,000 crores|
|Repayment tenure||7 years|
|Banks||SIDBI and NABARD|
|Taxation||No income tax and capital gain tax for next 3 years|