Stand Up India Scheme — ₹10 Lakh to ₹1 Crore Loan for SC/ST & Women Entrepreneurs

Want to start a business but struggling to get a bank loan? If you belong to the SC/ST category or are a woman entrepreneur, the Stand Up India scheme can help you get a loan between ₹10 lakh and ₹1 crore to set up a greenfield (new) enterprise in manufacturing, services, or trading.

Launched by the Government of India in April 2016, this scheme ensures that every bank branch in the country supports at least one SC/ST borrower and one woman borrower for setting up a new enterprise. In this guide, we cover everything — eligibility, loan amount, interest rate, how to apply, documents required, and FAQs.

What is Stand Up India Scheme?

Stand Up India is a flagship initiative of the Government of India aimed at promoting entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and women. The scheme facilitates bank loans between ₹10 lakh and ₹1 crore for greenfield enterprises.

Key highlights:

• Loan range: ₹10 lakh to ₹1 crore
• Target beneficiaries: SC/ST and women entrepreneurs
• Purpose: Setting up a new (greenfield) enterprise in manufacturing, services, or trading
• Implementing agency: Department of Financial Services (DFS), Ministry of Finance
• Facilitated by: SIDBI (Small Industries Development Bank of India) through the Stand Up Mitra portal
• Coverage: Every Scheduled Commercial Bank branch must support at least 2 such borrowers (1 SC/ST + 1 woman)

Important: The scheme is for first-time entrepreneurs only. If you already own a manufacturing, services, or trading enterprise, you are not eligible.

Who is Eligible for Stand Up India Loan?

To apply for a Stand Up India loan, you must meet the following criteria:

Borrower Eligibility

• SC/ST entrepreneur (male or female), OR woman entrepreneur of any caste/category
• Must be 18 years or above
• The loan is for a greenfield project — meaning a first-time venture in manufacturing, services, or trading
• Should not be a defaulter with any bank or financial institution
• Should not have an existing enterprise in manufacturing, services, or trading (first-time entrepreneurs only)

Enterprise Eligibility

• Must be a new enterprise (greenfield) — not expansion of an existing business
• Sector: Manufacturing, services, or trading
• In case of a non-individual enterprise (partnership, LLP, company), at least 51% shareholding and controlling stake must be held by the SC/ST or woman entrepreneur

Tip: If you need a caste certificate for SC/ST category proof, apply for it before starting your Stand Up India application.

Loan Amount and Coverage

The loan is a composite loan — meaning it covers both the term loan (for machinery, equipment, infrastructure) and working capital needs in a single sanction.

Note: The promoter's 25% margin can be reduced by leveraging subsidies from other government schemes like PMEGP or state-level entrepreneur support schemes.

Interest Rate

The interest rate under Stand Up India is not fixed but is capped to keep it affordable:

• Rate: Bank's MCLR (Marginal Cost of Funds Based Lending Rate) + 3% + tenure premium
• The effective rate should be the lowest applicable rate for that category of borrower
• Actual rates may vary from bank to bank, but they must stay within the RBI-guided ceiling

As of 2026, effective interest rates typically range between 9% and 12% per annum depending on the bank and tenure.

Repayment Terms

• Maximum repayment period: 7 years
• Moratorium period: Up to 18 months from the date of disbursement
• During the moratorium, you don't need to repay the principal — this gives you time to set up and stabilise your business
• After the moratorium, repayment is in equated monthly instalments (EMIs)

Collateral and Guarantee

One of the biggest barriers for new entrepreneurs is collateral. Stand Up India addresses this:

• Collateral: The scheme requires collateral/security as per existing RBI guidelines. However, if collateral is insufficient, it can be supplemented by the Credit Guarantee Fund Scheme for Stand Up India (CGFSIL)
• CGFSIL guarantee: Provides a credit guarantee cover to the lending bank, reducing the risk and making it easier for borrowers without significant assets to get approved
• Additional security: The assets created from the loan (machinery, equipment, etc.) are typically hypothecated to the bank

Key benefit: Even without significant personal assets, you can access loans up to ₹1 crore thanks to the government-backed credit guarantee.

How to Apply for Stand Up India Loan

You can apply through two channels:

Option 1: Online via Stand Up Mitra Portal

1. Visit standupmitra.in
2. Click on "Register" and create your profile
3. Select your category — SC, ST, or Woman Entrepreneur
4. Fill in your business plan details, personal information, and project cost
5. The portal will connect you with the nearest bank branch or a Lead District Manager (LDM) or a SIDBI representative
6. You will receive guidance on documentation and next steps
7. Complete the loan application at the connected bank branch

Option 2: Directly at a Bank Branch

1. Visit the nearest branch of any Scheduled Commercial Bank
2. Approach the Branch Manager and express your interest in the Stand Up India scheme
3. Submit the loan application with required documents
4. The bank will assess your project plan and process the application

Pro tip: Start with the Stand Up Mitra portal — it streamlines the process and connects you with a trained facilitator (called a Stand Up Connect Centre) who can handhold you through the application.

Documents Required

Keep the following documents ready before applying:

Identity and Address Proof

• Aadhaar Card
• PAN Card
• Voter ID / Passport / Driving Licence

Category Proof (for SC/ST applicants)

• Valid Caste Certificate issued by the competent authority

Business-Related Documents

• Detailed Project Report (DPR) — including business plan, projected revenue, and cost estimates
• Proof of business address (rent agreement / ownership documents)
• Quotations for machinery, equipment, or other capital goods
• Required licences and registrations (e.g., Udyam/MSME registration, GST registration, Shop & Establishment licence)

Financial Documents

• Bank statements (last 6–12 months)
• Income Tax returns (if applicable)
• Proof of promoter's contribution (margin money)

Photographs

• Passport-sized photographs of the applicant(s)

Note: Requirements may vary slightly by bank. Always confirm with your branch before submitting.

Step-by-Step Application Process

Here's a summary of the complete journey:

1. Prepare your project report — clearly define your business idea, investment needed, expected revenue, and employment generation
2. Register on standupmitra.in — create your profile and submit initial details
3. Get connected — the portal assigns you a bank branch or facilitator
4. Visit the bank — submit your full application with all documents
5. Bank assessment — the branch evaluates your project viability, creditworthiness, and eligibility
6. Loan sanction — once approved, the bank sanctions the composite loan
7. Disbursement — funds are released as per project milestones (may be in stages)
8. Set up your enterprise — use the funds for the intended purpose
9. Begin repayment — after the moratorium period, start paying EMIs

Benefits of Stand Up India Scheme

• Dedicated scheme for underrepresented communities and women — reduces barriers to entry
• Composite loan covering both term loan and working capital
• Government-backed guarantee through CGFSIL if collateral is insufficient
• 18-month moratorium gives breathing room to new businesses
• Handholding support through Stand Up Connect Centres for guidance on business plan, registration, and compliance
• Convergence with other government schemes like Mudra Loan and PMEGP for additional support

Stand Up India vs Other Schemes

Frequently Asked Questions (FAQ)

Can a general category male apply for Stand Up India?

No. Stand Up India is exclusively for SC/ST entrepreneurs (male or female) and women entrepreneurs (of any category). General category males are not eligible.

Is there any subsidy under Stand Up India?

There is no direct subsidy. However, the promoter's 25% margin contribution can be met by converging with eligible subsidy schemes of Central or State governments.

Can I apply if I already have a Mudra Loan?

Yes, you can apply for Stand Up India even if you have an existing Mudra Loan, as long as you don't already own an enterprise in manufacturing, services, or trading. The Stand Up India loan must be for a new (greenfield) project.

What if my loan application is rejected?

If a bank rejects your application, you can:

• Ask for the reason in writing
• Approach the Stand Up Mitra portal for assistance
• Contact the Lead District Manager (LDM) of NABARD/RBI in your district
• Apply at another bank branch

Can two people jointly apply?

Yes. In case of a joint venture or partnership, the SC/ST or woman entrepreneur must hold at least 51% shareholding and controlling stake.

Is Udyam registration mandatory before applying?

It is not mandatory at the time of application, but banks may require Udyam/MSME registration before final disbursement. It is advisable to complete it early.

What sectors are covered?

Manufacturing, services, and trading sectors. Agriculture and allied activities are not covered under this scheme (those have separate schemes like Kisan Credit Card).

Conclusion

The Stand Up India scheme is a powerful opportunity for SC/ST and women entrepreneurs to access bank finance of ₹10 lakh to ₹1 crore for starting a new business. With government-backed credit guarantee, an 18-month moratorium, and handholding support through the Stand Up Mitra portal, it significantly lowers the barriers to entrepreneurship.

Ready to start? Visit standupmitra.in, register your profile, and take the first step toward building your enterprise.

For more government schemes and business guides, explore our guides on Mudra Loan, PMEGP, Udyam Registration, and Caste Certificate.