Standup India Scheme - Interest Rate, Eligibility & How to Apply

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The Stand-Up India Scheme was launched on April 5, 2016, by the Government of India to encourage entrepreneurship among women and Scheduled Castes (SC)/Scheduled Tribes (ST) individuals. It intends to help women and SC/ST entrepreneurs get access to bank loans ranging from ₹10 Lakhs to ₹1 Crore to set up green field projects.

Green field projects are the ones that are started from scratch without any prior setup, and can be a part of any sector including manufacturing, services, and trading, as well as activities related to agriculture.

As of March 2023, over ₹40,700 Crores has been sanctioned under this scheme, which is helping more than 180,000 borrowers. Moreover, a significant portion of these loans, that is about 80%, has been allocated to women entrepreneurs.

Highlights of Stand Up India Scheme

Loan Amount	Ranging from ₹10 Lakhs to ₹1 Crore
Interest Rate	MCLR (base) rate of the bank + 3% + Tenure Premium
Repayment Tenure	Longer repayment tenure of up to 7 years with a moratorium period of up to 18 months
Shareholding Criteria	51% in the case of non-individual enterprises
Margin	15%, with at least 10% of the project cost

Features & Benefits of the Stand-Up India Scheme

As seen above, under the scheme, SC/ST members and women entrepreneurs can get a loan of up to ₹1 Crore for their first business.

Loan Amount

Beneficiaries of the Stand-Up India scheme can get loans ranging from ₹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 get funding of up to 85% of the project cost, making it easier to set up ventures with minimal upfront capital.

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Collateral and Guarantor Support

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 Read More 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 Read Less

Loan Repayment and Tenure

It offers a longer repayment tenure of up to 7 years to pay off the borrowed amount with a moratorium to aid this process. The scheme also includes a moratorium period of up to 18 months, giving entrep Read Morereneurs time to stabilise their operations before starting repayment. Read Less

Low Interest Rates and Accessibility

The scheme offers loans at competitive interest rates, making funding affordable for new businesses. Provision of the RuPay debit card allows beneficiaries to withdraw funds with ease

Working Capital Facilities

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

Comprehensive Support

Comprehensive support for borrowers is also offered in the form of a pre-loan training facility. A dedicated Web portal aids in providing support services and online registration facilities to borrower Read Mores. Read Less

Promoting Entrepreneurship and Inclusivity

The scheme helps minimise unemployment by motivating new entrepreneurs to establish new start-ups. Besides, it enables budding entrepreneurs to set up enterprises by easing legal, operational and insti Read Moretutional formalities. Assists borrowers throughout the pre-loan stage until the operating phase. The scheme plays a vital role in reducing unemployment by encouraging new entrepreneurs to set up businesses, particularly in underrepresented sectors. Provides the necessary funding to SC, ST and female entrepreneurs to help them set up their business easily Read Less

Stand-Up India Scheme Interest Rates & Charges

The Stand-Up India scheme’s interest rates are competitive, lower than the rates otherwise offered by a particular bank. These rates are linked to the Marginal Cost of Funds-based Lending Rate (MCLR) of the bank. These charges are designed to remain affordable, ensuring accessibility for first-time entrepreneurs.

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 of age

You must have a credible repayment history
You should 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 get the scheme only when you are establishing your business in services, manufacturing, trading or agriculture-related sectors for the first time
You shall be required to contribute a minimum of 10% of the project cost

Documents Required for the Stand-Up India Loan Scheme

Submit the following documents when applying for 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)
Projected balance sheets for the next two years in case of working capital limits
Copies of the lease deed or rent agreement of the office space/manufacturing unit
Any other document as per the requirements of the bank
SSI / MSME registration if applicable
Caste certificate or any document that can be used as a proof of the individual being from SC/ST category

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

Note: To get the entire list of banks participating in the Stand-Up India scheme check out the website https://www.standupmitra.in/Home/MouBanksList

How to Apply for the Stand-Up India Scheme

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

Through SIDBI’s Stand-Up India Portal

Visit the official portal www.standupmitra.in.
Select your category (SC, ST, Woman) and indicate if you hold a 51% or higher stake in the business
Enter the nature of the proposed business and other details
Enter all requested personal details, including the name of the enterprise and its constitution
Click on the "Register" button to complete your application

Directly at the Bank Branch

You can apply by visiting any participating bank branch that offers Stand-Up India loans (See the list of banks above)
Keep all the documents ready along with photocopies to submit
Fill out the application form provided at the branch and submit it along with your documents

Through Lead District Manager (LDM)

Find out who your Lead District Manager is by checking local government resources or visiting the Stand-Up India portal
When you log in to the portal, you will be redirected to the dashboard where you can see the respective LDM and connect centres
Contact the LDMs and seek their guidance
Submit application and documents as directed by your LDM

Conclusion

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.

Important Links

Other Govt. Schemes related Links

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.