Pradhan Mantri Credit Scheme – Stand Up India
Pradhan Mantri Credit Scheme – Stand Up India
The Government of India has introduced the Pradhan Mantri Credit Scheme -Stand Up India to support the power loom units and weavers across the country. Under the Pradhan Mantri Credit scheme, financial assistance will be provided to the SC, ST and Women Entrepreneur of the decentralized power loom units to meet their working capital requirements. In this article, we look at the Pradhan Mantri Credit Scheme – Stand Up India in detail.
Objective
To provide financial assistance through margin money subsidy against the credit facility availed under Stand-up India scheme by the SC, ST and Women Entrepreneur of the decentralized power loom units or weavers to meet their credit requirements such as investment needs (Term Loan) and working capital etc.
Stand Up India- Eligibility Beneficiaries
The eligibility criteria to obtain benefits of Pradhan Mantri Credit Scheme are given in detail here:
- Any new power loom units established by a person who belongs to Scheduled Caste (SC) or Scheduled Tribe (ST) or Woman Entrepreneur is eligible to apply for the scheme.
- The borrower should not be the defaulter of any banks or Financial Institutions (FIs) at the time of applying for the scheme.
Note: In case of non-individual units, at least 51 % of the shareholding and controlling stake should be maintained by either an SC or ST or Women Entrepreneur.
Stand Up India-Financial Assistance
Under this scheme, the Central Government will afford a 25% margin money subsidy of up to a project cost of Rs.1.00 Crore with a ceiling of Rs 25 Lakh.
Note: Also, the borrower is required to provide 10% of the Project Cost as his or her contribution.
Repayment of Loan
The loan amount has to be repaid within 5 years, including the moratorium period.
Documents Required
The prescribed documents are to be submitted along with the application form:
- Proof of Identity: Voter’s ID/ Passport/Driving License/PAN Card.
- In case of a company Signature identification from Present Bankers of Proprietor, partner of Director.
- Proof of Residence: Telephone Bills, Electricity Bill, Property Tax Receipt /Passport/Voter’s ID Card of Proprietor, partner of Director (in case of a company)
- Agreement of Capital Structure
- Proof of Business Address
- Memorandum and articles of association (MOA) of the Company/Partnership Deed of partner etc.
- Statement of assets and liabilities of promoters and guarantors along with latest income tax returns.
- Rent Agreement and clearance from pollution control board (if any)
- Copy of Small Scale Industry (SSI) / Micro, Small and Medium Enterprise (MSME) registration (if any)
- Balance sheets for the next 2 years in case of working capital limits and the duration of the loan details in case of term loan.
- Photocopies of lease deeds or title deeds of all the properties offered as primary and collateral securities.
- Documents to confirm whether the applicant belongs to SC, ST Category if required.
- Certificate of incorporation for ROC to establish whether the majority stakeholding of the company belongs to the category of SC, ST and Woman.
- Profile of the unit including names of promoters, any other directors in the firm, the activity being undertaken in the firm and shareholding pattern etc.
- Copy of last three years balance sheets of the Associate or Group Companies (if applicable)
- Report of the project proposed includes the details of the machinery, price, names of suppliers, financial information such as the capacity of utilization assumed, capacity of machines, predicted profit and loss, balance sheets for the tenor of the loan, production sales and the details of labour, workers to be hired, etc.
- Details of manufacturing process if any,
- Details of raw material used and their suppliers, details about the buyers, details about major competitors and the firm strength and weaknesses as compared to their competitors etc.
Online Application Procedure for the Scheme
To apply for the Pradhan Mantri Credit Scheme (Stand Up India), follow the procedure which is mentioned below:
Step 1: The eligible applicant has to visit the official portal of the Ministry of Textile, Government of India.
New User Registration
Step 2: Click on the “Register” button to apply for PowerTex Mudra Scheme.
Apply for PowerTex StandUp India
Step 3: On the next page, the applicant has to select the “ Pradhan Mantri Credit Scheme – Stand Up India from the list of schemes.
Registration Form
Step 4: The registration page will open up, fill the following enterprise detail to complete registration.
Receive OTP
Step 5: After filling the details, the applicant will receive the OTP to the registered e-mail id.
Enter the OTP
Step 6: Enter the following OTP on the screen which is displayed and then click on the “Process” button.
Registration Successful
Step 7: After entering OTP, the system will display a successful message.
Step 8: Now enter a username, i.e., email id and enter the password of your choice and re-enter the password to confirm.
Login into the Portal
Step 9: Click on “Login” button to log in to the portal to apply for the scheme, and then the dashboard will be displayed after a successful login.
Apply for Annexure-2”
Step 10: Select “Apply for Annexure-2” on the dashboard to fill Annexure-2.
Step 11: Click on “New” button to apply for the subsidy.
Provide Business Information
Step 12: Now, the registered information will be fetched automatically. Fill in following information which is compulsorily required.
Upload the Documents
Step 13: After filling the details, upload the required documents along with the application form.
Submit your Application
Step 14: Click on “Submit to branch” to apply to the branch.
View the Application
Step 15: After submission, you can view the application but cannot edit.
Inspection Request
Step 16: After successful acceptance from the branch, the applicant can send the Inspection Request.
Step 17: If the inspection request is verified and approved, then the release and disbursement of funds will be updated on the same portal.
Track Application Status
After approval from Branch or Bank, the status of the application will be updated on the dashboard as given below.
- Click on “Know your Status” link, which is available on the homepage.
- Select “IPowerTex Schemes Application” and choose the respective scheme name from the list.
- Enter the application reference number and click on the “Submit” button to track the status of the application.
