Stand-Up India Scheme

Know how the Stand-Up India scheme helps aspiring entrepreneurs from SC, ST, and women categories understand financial support avenues and grow sustainable businesses under government-backed programmes. 

Launched by the Government of India in April 2016, the Stand-Up India scheme focuses on promoting self-employment and entrepreneurship in underserved sections such as SC, ST, and women. The scheme seeks to overcome the challenges of inadequate credit, lack of mentorship, and delayed funding that typically constrain these groups.

It does this by offering financing, handholding, and convergence with other Central and State schemes to make loan access seamless. Scheduled Commercial Banks across India implement this programme, providing composite loans comprising working capital and term loans for business setups.

The Stand-Up India scheme facilitates bank loans ranging from ₹10 Lakhs to ₹1 Crore to at least one woman borrower and one SC or ST borrower per bank branch. The loans support setting up new greenfield enterprises, which are first-time business ventures in manufacturing, trading, or services, including agriculture-related activities. 

This scheme encourages entrepreneurship with a focus on marginalised communities, helping to reduce income inequality and generate jobs. Besides financial aid, it includes mentorship and handholding to nurture enterprise success and sustainability. Eligible applicants may avail benefits of other government schemes alongside Stand-Up India, ensuring multiple-layered support.

The scheme includes several notable features: 

• Loan Range and Flexibility: Loans between ₹10 Lakhs and ₹1 Crore facilitate setting up viable enterprises across manufacturing, services, or trading.  
• Exclusive Beneficiary Pool: Specifically designed for SC, ST, and women entrepreneurs, helping those under-represented in business ownership. 
• Composite Loan: Includes term loans and working capital, giving a comprehensive financial cushion to new businesses. 
• Credit Guarantee Coverage: The loans may be supported by collateral-free credit guarantee schemes, reducing lender risk. 
• Handholding and Mentorship: Support beyond finance includes guidance on business plans, mentoring, and access to training programmes. 
• Digital Platform Access: The dedicated Stand-Up India portal simplifies application submission, tracking, and mentoring services. 
• Convergence Support: Borrowers can utilise subsidies or margin money from other government schemes to make their projects viable.

The scheme offers multiple benefits that can improve entrepreneurs’ chances of success: 

• Improved Access to Finance: Tailored loans eliminate traditional barriers faced by marginalised groups. 
• Inclusive Growth: Targeting SC, ST, and women fosters socio-economic equality and empowers these communities. 
• Reduced Loan Costs: Credit guarantee and handholding reduce risk and cost for borrowers. 
• Flexible Repayment Terms: Loans feature extended tenures and moratorium periods, easing cash flow constraints. 
• Comprehensive Support: Alongside financing, advisory and capacity-building support enables sustainable enterprise development. 
• Digital Processes: Online application and tracking reduce paperwork and speed up loan approvals.

Interest rates are risk-based and determined by lending banks in line with regulatory guidelines:

• The rate cannot exceed the bank’s base rate or Marginal Cost of Funds-based Lending Rate (MCLR) plus 3% plus tenor premium. 

• Banks may offer more competitive rates based on borrower credit profiles. 

• Loans under this scheme may be collateralised or covered by CGFSIL guarantee to reduce lending risks. 

• No additional processing fee is required by some banks, while others may charge nominal fees as per banking norms. 

This framework encourages banks to serve marginalised entrepreneurs while safeguarding financial prudence.

The criteria ensure that benefits reach the intended target groups:

• Applicants must be Indian citizens and above 18 years of age. 

• Only Scheduled Caste, Scheduled Tribe, and women entrepreneurs are eligible.

• The beneficiary must be setting up a new greenfield enterprise in manufacturing, trading, or service sectors (including agriculture-allied activities). 

• For non-proprietary firms, at least 51% share and a controlling stake must be held by eligible categories. 

• Applicants must not have defaulted on any previous loans from Scheduled Commercial Banks or Financial Institutions. 

• The project must be their first entrepreneurial venture; existing businesses are ineligible. 

• The borrower must bring a minimum of 10% of the total project cost from their own funds.

Applicants need to submit specific documents to support their loan processing:

• Identity Proof: Aadhaar card, PAN card, voter ID, or passport.
• Address Proof: Utility bills, ration card, bank statement, or rental agreement.
• Category Proof: Caste certificate for SC/ST applicants, or relevant documents for women entrepreneurs.
• Business Details: Project report, business plan, or Udyam registration certificate.
• Financial Documents: Bank statements, IT returns (if any), and proof of beneficiary contribution.
• Loan Application Form: A duly filled application with signatures.

Note: For non-individual entities, partnership deeds or Memorandum of Association (MoA) and Articles of Association (AoA) must be provided.

Online Application

The online process enables easy access and tracking of loan applications:

1. Visit the official Stand-Up India portal at www.standupmitra.in. 

2. Register with basic personal details and create a profile.

3. Fill in the online application form with business and financial information.

4. Upload scanned copies of required documents.

5. Submit the application and note the generated application ID.

6. Track application progress via the portal or receive updates from the concerned bank.

7. Attend any training or handholding sessions if recommended.

The portal also categorises applicants as ‘Ready Borrower’ or ‘Trainee Borrower’ based on their readiness and support requirements. 

Offline Application

For offline seekers, the stepwise method involves:

1. Visiting the nearest bank branch participating in the Stand-Up India scheme. 

2. Collecting the physical loan application form and filling it with accurate details. 

3. Attaching photocopies of all relevant documents. 

4. Submitting the form to the bank’s loan officer for processing. 

5. Following up regularly on application status. 

6. Accessing support through bank or government offices for business planning or mentoring. 

Loans sanctioned are disbursed after proper verification and background checks.

Scheduled Commercial Banks across India have been authorised to implement the scheme. Some prominent participating banks include: 

• State Bank of India

• HDFC Bank

• Central Bank of India

• Bank of Baroda

• Punjab National Bank

• Bank of Maharashtra

• Canara Bank

• Axis Bank

• IDBI Bank

• Union Bank of India

• UCO Bank

The list includes several scheduled commercial banks, ensuring wide coverage across urban and rural branches.