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Stand-Up India Scheme

Stand-Up India Scheme - Features, Benefits, Interest Rates, Eligibility Criteria & How to Apply

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.

What is the Stand-Up India Scheme

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.

Stand-Up India Scheme Details

The scheme provides structured support through loans and allied provisions. Check the table below for a quick summary of the scheme’s details:

Parameter Details

Loan Amount

₹10 Lakhs to ₹1 Crore

Interest Rate

Risk-based, up to MCLR + 3% + tenure premium

Loan Tenure

Up to 7 years with a maximum 18-month moratorium

Security

Collateral or Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL)

Working Capital

Overdraft facility up to ₹10 Lakhs; higher limit through Cash Credit facility

Borrower's Contribution

Minimum 10% of project cost

Margin Money

Up to 25% through convergence with other schemes

The loan is a composite credit facility that includes both term loans and working capital. The scheme targets greenfield projects, ensuring beneficiaries start new business setups, contributing to economic diversity.

Features of the Stand-Up India Scheme

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.

Benefits of the Stand-Up India Scheme

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.

Stand-Up India Loan Interest Rates & Other Charges

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.

Stand-Up India Scheme Eligibility Criteria

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.

Documents Required for Stand-Up India Scheme Loan

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.

How to Apply for a Stand-Up India Loan

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.

Stand-Up India Scheme Banks List

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.

Similar Schemes Available in Various States

Some states run complementary or alternative support schemes for entrepreneurship, enhancing the impact of Stand-Up India:

State Scheme Name Description

Maharashtra

Chief Minister Employment Scheme

Focus on employment generation among SC/ST and women

Karnataka

Karnataka Women Entrepreneurship Scheme

Financial and mentorship support for women entrepreneurs

Tamil Nadu

TN Special Loan Scheme

Subsidies and loans for new entrepreneurs in priority sectors

Kerala

Kerala Self-Employment Guidance

Package including loans and training facilities

Uttar Pradesh

UP Startup & Women Entrepreneurs Loans

Credit and skill-building support for marginalised groups

These schemes supplement central support and address local entrepreneurial challenges.

Frequently Asked Questions

What is the Stand-Up India scheme?

The Stand-Up India scheme is a Government of India initiative launched in 2016 to facilitate bank loans between ₹10 Lakhs and ₹1 Crore for SC/ST and women entrepreneurs to set up greenfield enterprises in manufacturing, trading, or services.

It was launched on 5th April 2016 to promote financial inclusion and entrepreneurship among marginalised groups.

The maximum composite loan amount available under the scheme is ₹1 crore, which includes term loan and working capital facilities.

No, the scheme remains operational and has been extended up to 31 March 2025, with proposals underway for a successor initiative.

Subsidies are not directly provided; however, margin money up to 25% is offered through convergence with eligible central and state government schemes.

Stand-Up India targets SC/ST and women by providing bank loans for new enterprises, while Start-Up India focuses on promoting innovation and startup ecosystem irrespective of caste or gender.

It refers to mentoring, skill-building, and guidance provided to entrepreneurs to improve their business planning, credit readiness, and sustainability.

Yes, it has been extended up to 31 March 2025 in line with the 15th Finance Commission recommendations.

The loan is composite, combining term loan and working capital, with amounts between ₹10 Lakhs and ₹1 Crore.

Loans are provided for setting up greenfield projects in manufacturing, trading, services, and allied agriculture sectors.

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