In case the borrower requires no handholding support, then registration on the portal as a Ready Borrower starts the process of application for the loan at the selected bank. At this stage an application number will be generated and information about the borrower shared with the bank concerned, the LDM (posted in each district) and the relevant linked office of NABARD/ SIDBI. The offices of SIDBI and NABARD shall be designated Stand-Up Connect Centres (SUCC). The loan application will now be generated and tracked through the portal.

In cases where the borrower indicates a need for handholding, then registration as a Trainee Borrower on the portal will link the borrower to the LDM of the concerned district and the relevant office of SIDBI/ NABARD. This process which would be electronic, could be done at the borrower’s home by himself/ herself or at a CSC or through a bank branch by the officer dealing with MUDRA.

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).

The scheme for Credit Guarantee for loans under Stand-Up India has been notified. The norms in this respect are aligned with existing CGTMSE norms.

The Scheme envisages 25% margin money which can be provided in convergence with eligible Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution. To illustrate, if a State scheme supports a borrower with 20% of the project cost as subsidy, then the borrower will be required to contribute at least 10% of the project cost. Any subsidy received by a unit which was not foreseen during loan appraisal will be credited to the loan account. In cases where a subsidy was included during appraisal but received after commissioning, the same may be released to the borrower to repay any loan taken for arranging margin money. A list of Central / State wise subsidy/incentive schemes will be provided on the Portal. New schemes will be added as they become available.

• To operate and maintain the Stand-Up India web portal
• Arrange for handholding 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 organized by NABARD.

• Training of Trainers, LDMs, Bank officers for Stand-Up India
• Arrange for handholding 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
• Organize events, as frequently as necessary and at least once in each quarter, for experience sharing etc. amongst stakeholders.

• Monitor progress of cases
• Serve as contact point for SIDBI/NABARD for easing bottlenecks.
• Sensitize bankers on potential borrowers.
• 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 organized by NABARD.

• Recommend to the banks the business proposal of Entrepreneurs;
• Perform preliminary credit appraisal on behalf of the banks.
• Collect additional supporting information required by the Banks/Credit Institutions

• Help potential borrowers in accessing the portal
• Process loan applications received online or in person
• Process loans within the timeframe as stipulated in Code of Bank’s Commitment to SME borrower(Application for loan upto 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.

• Access the portal or visit a bank branch and answer a short set of questions
• If categorized as a Trainee Borrower, then go through the sequence of handholding support, as applicable
• Arrange/ provide requisite documentation as required by the bank branch
• Attend quarterly events on experience sharing, best practices, problem solving etc.
• Set up and run the unit with due diligence.
• Make repayments in due time.