Stand Up India Guidelines

Table of Contents

GUIDELINES FOR STAND UP INDIA SCHEME (Stand Up India Guidelines)

INTRODUCTION

The objective of the Stand Up India scheme is to Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the 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(Stand Up India Guidelines)

STAND UP INDIA PORTAL (www.standupmitra.in)

1. The Stand Up India Portal is interactive. It hosts information about various entities providing hand holding support to the borrower. This includes

Training : Technical or/ and Financial
DPR preparation
Margin money support
Shed / workplace identification
Raw material sourcing
Bill discounting
E-com registration
Registration for taxation

2. The Portal is designed to obtain application forms,gather and provide information, enable gather and provide information, enable in tracking and monitoring. As more facilities become available it shall be further refined into an end to end solution(Stand Up India Guidelines)

3. The Stand Up India scheme endeavours to create an eco system to make borrowers ready. This system is now meant for supporting Stand Up Borrowers but will be extended in due course to other schemes.(Stand Up India Guidelines)

NATURE OF LOAN

The loan shall be a Composite Loan i.e. to meet requirements of assets such as plant and machinery and working capital. It is expected to cover 75 % of project cost and the rate of interest would be lowest applicable rate of the bank for that category (rating) not to exceed (base rate (MCLR) + 3%+ tenor premium). It shall be repayable in up to 7 years with a moratorium of up to 18 months. A Rupay card will be issued to enable operation of the working capital component. (The stipulation of the loan being expected to cover 75% of the project cost would not apply if the borrowers contribution along with convergence support from any other scheme exceeds 25% of the project cost)

CREDIT GUARANTEE/ COLLATERAL

The Stand Up India Scheme provides for collateral free loans to the applicants. The scheme known as Credit Guarantee Scheme Stand Up India (CGSSI) has since been notified and shall be channelised through National Credit Guarantee Trustee Company (NCGTC).(Stand Up India Guidelines)

RESPONSIBILITIES OF STAKEHOLDERS

SIDBI :-

To operate and maintain the Stand Up India web portal
Arrange for hand holding support for Trainee Borrowers
Liaise with banks for follow up in potential cases through LDM/SLBC
Coordinate with LDM for easing bottlenecks
Assist the SLBC and DLCC in reviews and monitoring
Participate in Stand Up events organised by NABARD.

NABARD :-

Training of Trainers, LDMs, Bank officers for Stand Up India(Stand Up India Guidelines)
Arrange for hand holding support for trainee borrowers
Liaise with banks for follow up in potential cases through the LDM
Coordinate with LDM for easing bottlenecks
Assist the SLBC and DLCC in reviews and monitoring
Organise events, as frequently as necessary and at least once in each quarter, for experience sharing etc. amongst stakeholders

LDMs :-

Monitor progress of cases
Serve as contact point for SIDBI/NABARD for easing bottlenecks.
Sensitise bankers on potential borrowers(Stand Up India Guidelines)
Follow up with concerned regional/zonal office of the respective bank to ensure timely processing/ sanction of loans as per time frame specified in Code of Bank’s Commitment to Micro and Small Enterprises.
Ensure that borrower’s requirement of handholding support is satisfied to the extent possible.
Convene DLCC meetings in the specified periodicity.
Participate in quarterly events with stakeholders organised by NABARD

DLCC :-

DLCC under the Collector to review progress periodically
Grievance redressal at district level
Assist in resolving issues, if any, relating to publicutility services and work space for potential borrowers

BANK BRANCHES :-

Help potential borrowers in accessing the portal
Process loan applications received online or in person(Stand Up India Guidelines)
Process loans within the timeframe as stipulated in Code of Bank’s Commitment to SME borrower (Application for loan upto Rs.5 lakh within 2 weeks, between `5 – 25 lakh in 3 weeks, above 25 lakh in 6 weeks, from the date of receipt of application provided the application is complete in all respects and is accompanied by documents required)
In case of rejection, reason to be made known to borrower as stipulated in the Code of Bank’s Commitment to Customers.
Grievance redressal at the bank level should be done in 15 days at the bank level as per Code of Bank’s Commitment to Customers
Banks to put in place an internal mechanism for monitoring of scheme performance.