Stand-Up India Scheme: Bank-wise Interest Rates and How to Choose a Lender

How banks price a Stand-Up India loan, and how to choose one

Stand-Up India does not fix a single interest rate. Instead the scheme caps the rate: the bank must charge its lowest applicable rate for that category, and no more than MCLR + 3% + tenor premium (per the scheme guidelines). Within that ceiling the actual rate, fees and speed vary by lender, and you can pick your bank inside the online application. This guide explains what to compare and what to ask. The Stand-Up India Scheme pillar covers eligibility and the benefit; the one-line reminder is a composite loan of Rs 10 lakh to Rs 1 crore for SC, ST and women entrepreneurs, up to 7 years with an 18-month moratorium.

Which lenders participate

The Stand-Up Mitra portal reports around 75 lenders onboarded, more than 1.57 lakh bank branches connected, and over 24,600 handholding agencies registered. Every scheduled commercial bank branch is expected to facilitate at least one SC/ST borrower and one woman borrower. In practice you can approach:

• Public sector banks (e.g., State Bank of India and other PSBs)
• Private sector scheduled commercial banks
• Branches routed to you via standupmitra.in or jansamarth.in after profiling

Because it is a composite loan, the same branch sanctions both the term loan and the working-capital portion.

The rate: how the cap actually works

The scheme's rate rule is the key number for your comparison. The bank charges its lowest rate for that category of advance, subject to a ceiling of MCLR (or the applicable external benchmark) + 3% + tenor premium. Two consequences:

1. Rates are bank-specific and change over time, they move with each bank's MCLR/EBLR. As one published example, State Bank of India listed its Stand-Up India rate as EBLR + 3.25% (stated as 8.90% + 3.25% = 12.15%, with effect from 15 February 2025). Treat this as an illustration of how a bank quotes, not a fixed scheme rate.
2. Because the ceiling formula is common but each bank's benchmark differs, two lenders can quote materially different rates for the same project. Always get a current written quote from each shortlisted bank.

Beyond the rate: what else differs by bank

The interest rate is not the only variable. Compare:

• The base benchmark and spread below the cap. A lower MCLR/EBLR passes you a lower rate.
• The moratorium offered, up to 18 months; some branches structure this more generously than others.
• Collateral appetite. The loan can be covered under the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), designed to reduce the need for third-party collateral. Confirm the branch will route your loan through CGFSIL rather than demanding extra security.
• Speed of appraisal and sanction — varies widely by branch.
• Comfort with your sector, a branch that has funded similar greenfield units appraises faster.

How to choose your lender

1. Profile on standupmitra.in and note the branches the portal routes you to for your district.
2. Shortlist two or three banks, ideally your existing bank plus one other.
3. Ask each for a written quote: the applicable rate, the benchmark it is built on, and where it sits against the MCLR + 3% + tenor-premium cap.
4. Confirm CGFSIL cover so you are not asked for third-party collateral unnecessarily.
5. Compare moratorium and tenure within the 18-month and 7-year limits.
6. Weigh speed against rate. A fast, scheme-experienced branch can be worth more than a marginally lower rate on a 7-year loan.
7. Match the project report to the lender, a solid DPR is what unlocks both a good rate and a quick sanction; use the free handholding support to prepare it.

Questions to ask every bank

1. What rate will you offer, on which benchmark, and how does it sit under the MCLR + 3% + tenor-premium cap?
2. Will you route this under CGFSIL, and what collateral (if any) do you still require?
3. What moratorium will you give within the 18-month limit, and what is the total tenure?
4. How is the composite loan split between term loan and working capital, and is working capital an overdraft or cash-credit limit?
5. What margin/own contribution do you expect (the scheme requires a minimum 10%)?
6. What is your typical sanction timeline after the file is complete?

Where to get help

• National toll-free helpline: 1800-180-1111
• Email support: support@standupmitra.in and help@standupmitra.in
• Local escalation: the Lead District Manager, or the nearest SIDBI or NABARD office

Registration and handholding on standupmitra.in are free, and no agent can secure a better rate or a faster sanction for a fee, each bank prices and approves the loan on your project's merits.