As per the Ministry of Labour and Employment (MLE), unemployment has become a major issue in India. The unemployment rate in India has risen in the past years, from 4% in 2017 to 7.6% in 2019.
To prevent this rate from increasing further the Government launched several assistance initiatives, including Start-Up India and Stand-Up India scheme to offer business finance to the future entrepreneurs of the country. Candidates can avail loan amount ranging between Rs. 10 Lakh to Rs. 1 Crore under this scheme that came into effect on 16th January 2016. The scheme has been successful enough to sanction around 74831 applications till 30th June 2019.
To ease the repayment process without adding a burden on the pocket, borrowers can enjoy an extended loan tenor of up to 7 years with an additional 18 months as moratorium period. Furthermore, the eligibility criteria to avail the advances is easy to meet, and you can apply for credit with convenience.
Shared below are some of the essential details that you should know before applying for start-up business loans:
Documentation for Start-Up India, Stand-Up India scheme
Similar to the process of availing advances from financial institutions, you will have to submit some specific documents required for a business loan under this scheme, like –
- Business existence proof: GST certificate, SEBI certificate, SSI certificate, etc.
- Business address proof: Rental agreement, partnership deed, etc.
- KYC documents: Aadhaar card, PAN card, voter ID, passport, driving license, etc.
- Income proof: Income Tax returns, balance sheets, profit and loss account statements, etc.
- Residential address proof: Telephone bills, water bills, gas bills, electricity bills, ration card, etc.
Eligibility criteria for Start-Up India, Stand-Up India scheme
To be eligible to apply under the Stand-Up India scheme –
- You should be above the age of 18 years.
- Your company should be operating for more than 5 years.
- If you have availed a business loan for your organisation previously, you should not have any defaults and good credit history.
- The total turnover of your company should be above Rs. 25 Crore.
- It should be a private limited or a partnership firm.
- The organisation should have the necessary approvals and registration from DIPP, trademark office and Indian Patent Office, SEBI, etc.
Besides, if your company is a partnership firm, a share of 51% should be owned by SCs, STs or women.
In case you fail to meet the criteria mentioned above, you can also apply for credit from NBFCs and similar financial institutions. You can choose a Bajaj Finserv Business Loan and avail an attractive rate of interest, substantial loan amount of up to Rs. 30 Lakh, flexible tenor, instant approval, online account access, quick disbursal, foreclosure facilities and other such benefits.
Existing customers can also explore pre-approved offers that aim to reduce the hassles of the application process and also save you time.
The application process for Start-Up India, Stand-Up India scheme
Advances under the Stand-Up India scheme can be applied for by –
- Accessing the official portal of Start-Up India, Stand-Up India and filling an online application form with the required personal, financial and organisation details, etc.
- You can also apply from lenders offering advances under this scheme by filling an online application form with the required details.
Features of this Stand-Up India scheme
- The scheme offers tax holidays up to three years for individuals applying for advances under this scheme.
- Government offers a mobile apps to help applicants gather the required details on this scheme, apply for advances, check the status of approvals and registration, etc.
Furthermore, start-up business loans are offered at an affordable rate of interest. The interest rates are fixed depending on the current MCLR. Additionally, the advances are offered to only first time ventures, also termed as Green Field Projects.