Stand-Up India Scheme for financing SC/ST and/or Women Entrepreneurs
The objective of Stand-Up India scheme is to facilitate bank loans between ₹ 10 lakh and ₹ 1 crore to Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and Woman borrower for setting up a greenfield enterprise (first time venture), in manufacturing, services or 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.
Bank finance not to exceed 75% of total cost.
Besides primary security, the loan may be secured by collateral security or guarantee from Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), as defined under respective product guideline/policy.
• Commercial Vehicle Loan: Loan for vehicles for starting Transport/Logistics business
• Construction Equipment Loan: Loan for equipment for starting Construction/ Equipment rental business
• Car Loan: Loan for vehicles for setting up Taxi/Car rental services
• Business Installment Loan (BIL): Term loan for new business for buying plant and machinery, furnishing offices etc.
• Loan Against Property: Term Loan against property for new business for buying plant and machinery, furnishing offices etc.
• Business Loans Group (BLG) and Rural Business Credit (RBC): Overdraft facility/Cash Credit facility/Term Loan for new venture
Mudra Yojana Scheme for Women
India is a nation where women empowerment is yet to take place, especially in the rural and semi urban areas, where they are still looked down as the weaker and incapable sex. When women are struggling for their basic rights, it is almost near to impossible to make any sort of progress or development as a nation in the global village that we live in today. The Mudra Yojana Scheme launched by the Government of India is trying its very best to improve the status of women by providing loans and encouraging them to start new ventures and thereby empowering them by providing a financial security of individual income. A specified sum of money is allotted to be funded to just the women entrepreneurs or the Women Preneurs, a wise decision implemented by the Indian Government.
What is Needed to be an Entrepreneur?
Lack of capital income was the main contributing factor that held women back all these days. Without proper education or collateral, loans are also not possible to get. With this issue now cleared, reports show that more and more women are climbing out of their shells into the real world and trying their hand at becoming entrepreneurs. To excel as a woman in the world requires grit and determination and it is not possible; this is what the rural women have grown up hearing. But, to develop a nation it is vital to empower women and bring them at par with men and that is exactly what this government scheme proposes to do by breaking the gender barrier.
Various Features of this Scheme
Beauty parlours, tailoring units, tuition centres and various other small ventures are being started by women with this scheme operating in full swing. Groups of women who get together to start joint ventures will also receive loans and funds under this scheme, provided they are eligible according to the predefined terms and conditions. The fact that this loan is collateral free is in fact a big boon to them, for it takes off a huge burden from their backs. The loaning procedure is quite simple. The eligible applicants will be verified using a few formalities. The verified female citizens will then receive a Mudra card which they can use to buy the required material to start their business. Women will also receive loans under the Shishu, Kishor and Tarun schemes, depending on the nature as well as state of establishment of the business. The procedure is same as for the others.5>
How Do Banks Help?3>
Banks are churning out loans to women who are happily starting or developing their ventures. The amount of money refinanced is expected to increase with the success rate of the Mudra Yojana Loaning Scheme. In the next year, the number of women benefitted by this scheme is expected to be at the least doubled or probably even tripled.
A minor portion of women population are also tapping the benefits of Mudra by aiding their husbands buy vehicles like auto rickshaws or trucks. Though this is not exactly in line with benefitting the female gender to attain equal rights, it does help the family move a step further and thereby does contribute to the development of the nation in a different form.
What is the Main Aim of this Scheme?3>
Of all the steps and initiatives proposed and implemented by the Government, this by far seems to be the most revolutionary one, causing a storm in the non-urban portions. As the females in India become entrepreneurs, they will find themselves being looked upon with a new found respect. It’s with little steps like these that our India will transform from a developing nation to a developed nation.
How to Apply & Get Mudra Loan
Pradhan Mantri MUDRA Yojana popularised under the name of Micro Units Development and Refinance Agency was announced by the Hon’ble Finance Minister during the Budget for FY 2016. This Yojana was organised by our Prime Minister Narendra Modi on 8th of April 2015 for funding small business sectors (small and medium scale entrepreneurs). “Funding the Unfunded” was the basic idea of this scheme established with a budget of Rs. 20,000 crores for extending credit up to Rs. 10 lakhs to Micro Finance Institutions. It is regarded to provide Rs. 10 Lakhs to Rs. 5.75 crore small business units.
With a prospect of accelerating the growth of Indian economy, this Yojana has been set up with the following benefits:
1.Low-cost funds available for Micro Finance Institutes (MFIs), especially SCs/STs for lending.
2.Small scale businesses will experience the ease of access to funds and will increase their liquidity.
3.The combination of their integrity and capital would prove to be a successful duo for the success of this scheme.5>
4.Similarity in regulations and best practices of SHG linkage programme, NBFCs-MFIs, trusts/societies/companies under section 25 engaging in Mudra activities as Mudra Bank will be the only regulator of all roles in the MFIs sector.
Steps to Follow for Getting the Loan
This plan is altogether a new Mudra Bank Scheme for the economic institutions of the Government of India.
To take the acquisition of this Loan, first all the proposed business plan, i.e. 22 small business ideas for low investment needs to be provided.
The Yojana further provides three categories in which your business will lie.
The three categories are
These three categories signify the growth, development and funding stages of the business of micro unit. Details regarding each stage are given as follows:
•First category SHISHU, offers a loan cover up to Rs. 50,000/-. This is for the stage when you have just started the business.
•The second category KISHOR, under which loan is covering up to Rs. 50,000 to Rs. 5 Lakhs will be provided by the time your business, has established itself.
•Third category TARUN, Rs. 10 Lakhs as a loan are provided when you have an established business and need the funds only for the appraisal and expansion of your business.
Now who to approach with this scheme is the main question. So for this problem one can seek help from any of the following institutions of their respective region:
• Scheduled Commercial Banks (Public/Private)
• Regional Rural Banks (RRBs)
• Scheduled Urban Co-operative Banks
• State Co-operative Banks
• Micro Financial Institutions- MFIs (like BNFCs, Societies, Trusts, )
The important thing to be kept in mind is that sometimes this MUDRA YOJANA is also called as MUDRA BANK but it is not to be mistaken as a separate bank. Mudra Bank is just a financial scheme under the Government of India to provide a loan for setting up a firm business to the small business sectors. This helps in the growth of the of small scale industries, catering the raw material needs of the large-scale industries, thus forming a circle for the expansion of large-scale industries too. All you need is get the blueprint of the business plan that is beneficial for the economy as a whole and choose the category accordingly. Just after doing this, approach the nearest public/ private bank.
Now once the loan has been granted, you will be given a MUDRA CARD, which is similar to the credit card. The limit of your Mudra Card will be 10% of the loan you have been granted. Suppose you have been granted the loan of Rs. 10 Lakhs, then the credit limit will be Rs. 10,000. As it is, the maximum credit limit is Rs. 10,000. There’s a new update that CORPORATION BANK has launched a Mudra Card (in association with the Government of India) in the face of RUPAY DEBIT CARD. This card, all in all, extends a helping hand in the withdrawal of money along with the use of working capital finance by micro-entrepreneurs.