✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Apply Now

The Stand-Up India scheme is an initiative of the Indian government to provide bank loans ranging from ₹10 Lakhs to ₹1 Crore to a minimum of one SC/ST (scheduled caste/scheduled tribe) and a woman borrower in each branch of the bank.

 

Banks sanction the loan amount to help such candidates establish a greenfield enterprise involved in manufacturing, trading or activities allied to agriculture. 

 

However, if the entity is a non-individual enterprise, it is crucial that 51% of the total shareholding must be held by a woman borrower or an SC/ST individual. To understand more features of the Stand-Up India loan, read on.

Features & Benefits of the Stand-Up India Scheme

Under the scheme, SC/ST members and women entrepreneurs can get a loan of up to ₹1 Crore for their first business. Check out the various features of the Stand-Up India scheme:

  • Beneficiaries of the scheme can avail funding of anywhere between ₹10 Lakhs to ₹1 Crore 

  • Loans are only granted to applicants who are setting up a business for the first time in either the trading, manufacturing or agri-allied sectors of India

  • Through the scheme, applicants can avail funding of up to 85% of the project cost

  • Loans granted under the scheme can be secured with the help of a guarantor or by offering a collateral/security, subject to the rules of the lender

  • Loans can be repaid by borrowers over 7 years and are entitled to a moratorium period of up to 18 months

  • Institutions like SIDBI (Small Industries Development Bank of India) and DICCI (Dalit Indian Chamber of Commerce and Industry) regulate the Stand-Up India loan scheme

  • Provision of the RuPay debit card allows beneficiaries to withdraw funds with ease

  • Eligible borrowers can access working capital of up to ₹10 Lakhs via overdraft facilities and amounts over this as a cash credit limit

  • Banks or lending institutions will check the credit history of the borrower and ensure that funds are not utilised for personal purposes

  • Comprehensive support for borrowers is also offered in the form of a pre-loan training facility

  • Web portal aids in providing support services and online registration facilities to borrowers.

Note that the funding is supposed to be used for setting up the ventures and fulfilling initial working capital requirements. 

 

Here is an overview of the Stand-Up India scheme’s advantages:

  • Helps minimise unemployment by motivating new entrepreneurs to establish new start-ups

  • Enables budding entrepreneurs to set up enterprises by easing legal, operational and institutional formalities

  • Provides the necessary funding to SC, ST and female entrepreneurs to help them set up their business easily

  • Assists borrowers throughout the pre-loan stage until the operating phase

  • Offers a longer repayment tenure of up to 7 years to pay off the borrowed amount with a moratorium to aid this process

Read More

Stand-Up India Scheme Interest Rates

The Stand-Up India scheme’s interest rates are nominal, lower than the rates otherwise offered by a particular bank. This minimises the overall borrowing cost.

 

Here is a tabular overview of the Stand-Up India scheme interest rate and other details.

Interest Rate

MCLR (base) rate of the bank + 3% + Tenure Premium

Minimum and Maximum Available Funding

₹10 Lakhs - ₹1 Crore

Shareholding Criteria

51% in the case of non-individual enterprises

Disclaimer: The figures mentioned above are subject to changes. You are advised to check with the lending institution before applying. 

Stand-Up India Scheme Eligibility

Before applying for the scheme, make sure you meet the required Stand-Up India scheme eligibility parameters. Here are a few of them:

  • You must be an SC/ST member or a women entrepreneur

  • You need to be at least 18 years

  • You must have a credible repayment history and not be a loan defaulter

  • Around 51% of the controlling stake of a non-individual enterprise must be held by a woman, ST or SC borrower

  • You must avail the scheme only when you are establishing your business in services, manufacturing, trading or agriculture-related sectors for the first time

Read More

Steps to Register for the Stand-Up India Scheme

Follow the process mentioned below to avail of the benefits of the Stand-Up India scheme:

  • Visit the Stand-Up India scheme’s website

  • Enter your business location and related information

  • Confirm if you are a SC/ST/woman entrepreneur with 51% shareholding

  • Provide business details, such as the nature of your business, the sector it belongs to and the loan amount you want to borrow

  • Select if you need handholding support of any kind 

  • Fill in your personal details, such as your name, the name of your business and the username you desire

  • Click the ‘Submit’ button to complete the process

  • Wait for relevant officials to reach out to you to explain the process further

 

Alternatively, you can apply for a loan under the Stand-Up India business loan scheme through the offline route. You can visit the nearest lender’s branch to check if they provide loans under the Stand-Up India scheme. 

 

If yes, you can fill up the application form, attach the required documents and submit it to the concerned officials.

Read More

Documents Required for the Stand-Up India Loan Scheme

Submit the following documents when availing this scheme:

  • A copy of the duly filled application form along with the latest passport-sized photographs

  • Identity proof: Driving licence, passport, Aadhaar card, Voter’s ID or a PAN Card

  • Residence Proof: Aadhaar card, PAN Card, electricity bill or a phone bill

  • Proof of business address

  • Deed of partnership (if available)

  • Copies of the lease deed or rent agreement of the office space/manufacturing unit

  • Any other document as per the requirements of the bank

Read More

Stand-Up India Bank’s List

The banks offering loans under the Stand-Up India scheme are:

Indian Bank

Axis Bank

Indian Overseas Bank

Bank of Baroda

Jammu and Kashmir Bank

Bank of India

Punjab and Sind Bank

Bank of Maharashtra

PNB Housing Finance

Canara Bank

State Bank of India

Central Bank of India

Union Bank of India

ICICI Bank

UCO Bank

IDBI Bank

What is the Impact of the Stand-Up India Scheme?

Here is a table outlining the achievements of the scheme ever since its launch on April 5, 2016.

Total applications

2,06,295

Total amount 

₹48,420.97 Crores

Total number of applications sanctioned

1,85,627

Maximum amount sanctioned

₹41,792.93 Crores

Number of handholding agencies

24,613

Number of branches connected 

1,37,892

Number of lenders onboarded 

82

Number of HHA requests

3,332

The Stand-Up India loan is a suitable option for women, SC and ST entrepreneurs looking to achieve their dreams of owning a business. For additional details of the scheme or to get business financing and other forms of credit, look no further than Bajaj Markets.

FAQs on Stand-up India Scheme

Who can apply for a loan under the Stand-Up India scheme?

Anyone who belongs to the Scheduled Caste or Scheduled Tribe of India planning to establish their enterprise for the first time can apply for a loan under this scheme. First-time women entrepreneurs can apply for it too.

How can I apply for a loan under the Stand-Up India scheme?

You can apply for a loan under the Stand-Up India scheme through the online or offline route. To do it offline, visit the nearest bank branch, fill up the application form, attach the required documents and submit it. 


The online method is similar, except that you can visit the online portal and complete the application form from the convenience of your home.

Is there any kind of subsidy provided under the Stand-Up India scheme?

No, there is no subsidy provided under this scheme. However, you can get loans under the scheme at attractive interest rates.

What is the difference between Stand-Up India and the Start-Up India scheme?

Under the Stand-Up India scheme, first-time SC/ST or woman entrepreneurs are provided loans to set up their business. 


Start-Up India is a government initiative helping entrepreneurs gain the necessary skills and build a network that will promote and grow their start-up ventures.

What is handholding support in the context of the Stand-Up India Scheme?

In the context of the Stand-Up India scheme, providing comprehensive guidance to first-time entrepreneurs in the areas of setting up their businesses as well as filling up application forms is referred to as handholding support.

When did the Stand-Up India scheme start?

The Stand-Up India Scheme was introduced on April 5, 2016.

Has the Stand-Up India scheme gotten an extension?

Yes, the Stand-Up India scheme has been extended to 2025.

Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab