The stand up India scheme offers several advantages for women entrepreneurs. Women entrepreneurs who have business ideas of their own and wish to start their own ventures can consider this scheme for realizing their potential in business.
The stand up India loan scheme offers funds for SC/STs and women entrepreneurs with loans between Rs. 10 lakh and Rs. 1 crore being disbursed accordingly for at least one woman entrepreneur per branch for greenfield enterprises which can be in the service or manufacturing sector or even in the trading sector. For non-individual enterprises at least 51% of the controlling/shareholding stake in the business should be owned by the female entrepreneur.
Here is the eligibility criteria for woman entrepreneurs:
- Woman entrepreneurs should be above 18 years of age
- Loans will be sanctioned only for greenfield projects, i.e. those which cover first-time ventures in manufacturing, services and trading sectors
- 51% of the controlling or shareholding stake should be held with the woman entrepreneur in case of non-individual enterprises
- The borrower should not have any defaults to financial institutions
The loan will be a composite loan between Rs. 10 lakh and Rs. 100 lakh for setting up new enterprises. This will be a composite loan of 75% of the cost of the project which includes working capital and term loans. In case the borrower’s own contribution and other funding sources surpass 25%, this stipulation of 75% of the project cost being disbursed as the loan amount will not apply. The rate of interest will be the lowest applicable rate in that particular category, i.e. base rate (MCLR) + 3% + tenor premium.
The loan can be secured with adequate collateral or guarantees under Credit Guarantee Fund Scheme for Stand-Up India Loans or CGFSIL as worked out by the financial institution in question. The loan can be paid back within 7 years and the moratorium period can be a maximum of 18 months. In case of working capital, borrowers can get up to Rs. 10 lakh sanctioned through overdrafts. Borrowers will get RuPay debit cards for enhanced convenience. Cash Credit Limit will be tapped for sanctioning working capital above Rs. 10 lakh.
Margin money of 25% has to be put up which can be given in fusion with State and Central Government schemes. The borrower has to put up own contribution of 10% while drawing upon such schemes for funding the remainder of margin money. Woman entrepreneurs who are looking for business loans offering a high loan amount can opt for Bajaj Finserv Loans for Women. They can get business loans up to Rs. 30 lakh at low rates of interest and can obtain the loan by providing only a couple of necessary documents.
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