Stand-Up India Scheme

The Stand‑Up India Scheme is a Government of India initiative aimed at promoting entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and women. It enables eligible first‑time entrepreneurs to access bank loans from ₹10 Lakhs to ₹1 Crore for setting up greenfield enterprises in the manufacturing, services, or trading sectors.

Launched in April 2016, the scheme focuses on improving access to formal credit for groups that often face structural barriers such as limited collateral and restricted banking support.

The Stand‑Up India Scheme is designed to ensure that institutional credit reaches under‑represented entrepreneurs in a structured and sustainable manner. Each scheduled commercial bank branch is encouraged to support at least one SC or ST borrower and one woman borrower, strengthening inclusive access to finance.

Beyond loan assistance, the scheme places strong emphasis on handholding and mentorship. It also allows convergence with other central and state government schemes, enabling entrepreneurs to access complementary benefits during the early stages of business setup.

Loans under the scheme are offered as composite finance, which may include both term loans and working capital, based on the operational needs of the enterprise.

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 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.

To ensure that the benefits of the Stand‑Up India Scheme reach the intended beneficiaries, applicants must meet the following eligibility conditions:

• Target Group

The scheme is open only to Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs. For each bank branch, at least one SC/ST borrower and one woman borrower must be supported.

• Age

You must be an Indian citizen aged 18 years or above at the time of loan application.

• Project Type (Greenfield)

The loan must be used to set up a greenfield enterprise, meaning a first‑time business venture. Existing businesses or expansions are not eligible. The enterprise can operate in manufacturing, trading, or service sectors, including agriculture‑allied activities.

• Ownership (51% SC/ST or Women)

If the business is a non‑individual entity such as a partnership or company, at least 51% ownership and controlling stake must be held by an SC, ST, or woman entrepreneur.

• Credit History

You must not be a defaulter with any Scheduled Commercial Bank or financial institution at the time of applying for the loan.

• First‑Time Entrepreneur Requirement

The applicant should be setting up first entrepreneurial venture under the scheme.

• Promoter’s Contribution

You are required to contribute at least 10% of the total project cost from your own funds. The remaining amount may be funded through bank finance and permissible government support.

You can apply for a Stand‑Up India loan through either the online portal (standupmitra.in) or by visiting a participating bank branch. Both methods follow a structured verification process.

Here’s how:

Online Application Process (via standupmitra.in)

The Stand‑Up India portal is the official digital platform for submitting and tracking loan applications under the scheme.

Here are the steps you can follow:

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 readiness and support requirements. 

Offline Application

If you prefer to apply in person, you can approach a bank branch that participates in the Stand‑Up India Scheme.

1. Visit the nearest Scheduled Commercial Bank branch offering Stand‑Up India loans
   

2. Collect and fill out the physical loan application form with accurate details
   

3. Attach photocopies of all required documents
   

4. Submit the completed form to the bank’s loan officer for assessment
   

5. Follow up with the bank regarding application progress and any additional requirements

Loans sanctioned are disbursed after proper verification and background checks.

The Stand‑Up India Scheme plays a crucial role in encouraging entrepreneurship among women and SC/ST communities by improving access to formal credit and business support. By enabling eligible borrowers to secure funding for greenfield enterprises, the scheme helps transform business ideas into sustainable ventures. When combined with financing options such as an instant business loan, aspiring entrepreneurs can bridge short‑term funding gaps, manage cash flow efficiently, and accelerate the growth of their enterprises with confidence.