The following article is an initiative of State Bank Of India and is intended to create awareness among the readers.
When Somil Matta founded CleanMax Laundromart German dhobi two years back, he started with just three employees and no family support.
“My family is into real estate and tobacco business since last 30-35 years. When I told them about my idea, they were shocked and simply said no. I was researching about this idea since seven years and really wanted to open it,” he said.
Somil went ahead and did everything to make his dream project a success. Within 12 months, he scaled his company and now he employs 15 people.
But, there was a time when the business was on the verge of closing down.
“I was searching for angel investors and following up with different banks also. Then I heard about PM’s Standup India initiative. I researched a lot and zeroed on SBI’s initiative,” said Somil.
The ‘Standup India’ initiative, launched to uplift women and SC/ST entrepreneurs, has been backing entrepreneurs since its roll out in April 2016. It has helped startup owners in more than one way.
“I was relieved. I applied for a loan under the SBI Standup India scheme and within one and a half months, I received a sanction of Rs 73 lakh, and seven lakh as CC. So far, Rs 80 lakh has been invested in this business. The paperwork was hassle-free and I have recommended the same scheme to many of my friends,” said Somil.
This scheme is a boon for MSMEs, who are the largest employers in the country as Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one Scheduled Caste (SC) or Scheduled 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 enterprise at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
So far, 4500 borrowers have benefitted from it and the bank has provided Rs 1000 crore as assistance.
Various similar schemes have helped people sustain their startups. Another such example is of Swapna Wagh who founded Desitoys.in in 2012.
“We offer traditional Indian toys and games to the tech-savvy generation. We are reviving and innovating traditional toys with Indian theme and design,” said Swapna.
Desitoys began as a bootstrapped unit which Swapna started from her savings. Soon, the money ran out.
“After two years, I needed funds and resources. We had two choices- dilute equity and go to investors or take loan. That’s when I opted for the Mudra scheme by SBI. The interest rate was low compared to the rest. My account was activated within 15 days,” she said.
The Mudra scheme focusses on people who require loans less than Rs 10 lakh.
Uma Shanmukhi, GM, SBI SME Department, said, “This scheme was launched to focus on financing and supporting the MSMEs. Mudra scheme helps to focus on low segment activities. Loans are given to any micro segment with requirement of up to Rs 10 lakh.”
To avail the scheme, entity should fall under micro segment, which is into manufacturing activity or trading unit or service unit. Added bonus? There is no collateral security under this scheme.
“Last year our target was Rs 16, 500 crore and we had achieved Rs 16, 580 crore. We covered 1.3 million beneficiaries. Presently, we have already covered Rs 5, 800 crore of lending and 2.5 lakh customers.
Not only Desi toys lists its products at various online marketplaces, it also sells outside India.
The two SBI schemes have fuelled the dreams of many budding entrepreneurs giving them a win-win situation.