Stand-Up India Scheme

What is the Stand-Up India Scheme?

Stand-Up India is a Government of India scheme launched on 5 April 2016 by the Department of Financial Services, Ministry of Finance, to promote entrepreneurship among Scheduled Castes, Scheduled Tribes and women. Stand-Up India requires every scheduled commercial bank branch to facilitate loans for setting up greenfield enterprises by these groups.

According to the Department of Financial Services, Stand-Up India provides bank loans between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch, for a new enterprise in manufacturing, services, trading or an activity allied to agriculture.

Key objectives

• Bring first-generation SC, ST and women entrepreneurs into formal bank credit at a ticket size that MUDRA cannot serve.
• Fund the whole project through a composite loan covering both term loan and working capital, rather than two separate sanctions.
• Support borrowers before and after sanction through handholding agencies so that a lack of paperwork skills does not block a viable idea.

Main features

• Loan size of Rs 10 lakh to Rs 1 crore, covering up to 85% of project cost.
• Margin money up to 15%, which may be met by convergence with a central or state subsidy scheme; the borrower must contribute a minimum of 10% of project cost from own funds.
• Repayment of up to 7 years, with a moratorium of up to 18 months.
• Guarantee cover available under the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).
• Working capital up to Rs 10 lakh is sanctioned as an overdraft; above Rs 10 lakh it is sanctioned as a cash credit limit. A RuPay debit card can be issued for drawing funds.
• The Stand-Up Mitra portal reports 75 lenders onboarded, more than 1.57 lakh bank branches connected and over 24,600 handholding agencies registered.

Who is eligible for Stand-Up India?

You can apply if:

• You are an entrepreneur above 18 years of age.
• You belong to a Scheduled Caste or Scheduled Tribe, or you are a woman.
• The venture is greenfield - your first venture in that manufacturing, services, trading or agri-allied activity.
• For a non-individual borrower (company, partnership, LLP), at least 51% of shareholding and controlling stake is held by an SC, ST or woman promoter.
• You can bring in at least 10% of project cost as your own contribution.
• You are not in default to any bank or financial institution.

You cannot apply if:

• You are a man who does not belong to a Scheduled Caste or Scheduled Tribe - such applicants are not eligible under Stand-Up India, though Pradhan Mantri MUDRA Yojana may serve them.
• You are seeking finance for an existing or running business. Expansion of an established unit is outside the greenfield definition.
• Your requirement is below Rs 10 lakh - that falls under PMMY - or above Rs 1 crore, which is above the Stand-Up India ceiling.
• The controlling stake in a company or partnership is held by someone outside the target groups, even if one promoter qualifies.
• You are an existing defaulter to any bank or financial institution.

What documents are required for Stand-Up India?

How to apply for Stand-Up India online

1. Open the official portal at standupmitra.in and click Register at the top right of the home page.
2. Answer the profiling questions - your business location, category (SC, ST or woman), the sector of the proposed business, the proposed investment and whether you need business training.
3. Indicate whether you need handholding support. If you do, you are registered as a trainee borrower and linked to the Lead District Manager and the relevant SIDBI or NABARD office.
4. Complete the borrower profile with your personal details, project details and the amount of loan sought.
5. Upload the identity, caste, address, project report and bank statement documents.
6. Submit the application. The portal routes it to the Lead District Manager and participating bank branches in your district for appraisal.
7. Track the status on the portal and respond to the bank's request for clarifications or a branch visit.

Stand-Up India loan applications can also be submitted through the government's jansamarth.in credit portal.

How to apply for Stand-Up India offline

1. Visit the nearest branch of a scheduled commercial bank. Every branch is expected to fund at least one SC or ST borrower and one woman borrower.
2. Ask for the Stand-Up India application form and submit it with the project report and the supporting documents listed above.
3. Approach the Lead District Manager of your district or the District Industries Centre if you need help drafting the project report or arranging margin money through a state subsidy scheme.
4. Collect the acknowledgement and follow up with the branch on appraisal and sanction.

How much benefit does Stand-Up India provide?

Stand-Up India sanctions a composite loan of Rs 10 lakh to Rs 1 crore, combining a term loan and working capital in a single facility. The loan covers up to 85% of project cost, with the balance coming from margin money.

Margin money of up to 15% may be arranged in convergence with an eligible central or state subsidy scheme, but in every case the borrower must put in a minimum of 10% of project cost from own resources. Repayment runs to a maximum of 7 years, with a moratorium of up to 18 months during which principal repayment is deferred.

The interest rate is set by the lending bank and is capped at the bank's applicable rate for that category of advance under RBI guidelines - Stand-Up India does not prescribe a fixed rate of its own.

According to Department of Financial Services figures for 28 February 2025, the scheme had sanctioned 2.67 lakh accounts worth Rs 60,504 crore, of which Rs 34,450 crore had been disbursed, with 1.99 lakh women beneficiaries.

Common reasons Stand-Up India applications are rejected

• The proposed unit is not greenfield - the applicant already runs a business in the same activity.
• The applicant cannot demonstrate the minimum 10% own contribution.
• The project report is weak, with no credible market assessment or cash flow projection.
• The 51% shareholding and control test fails for a partnership or company.
• The applicant or an associate concern has an existing default or an adverse credit bureau record.

Help and grievance redressal

• National toll-free helpline: 1800-180-1111
• Email support: support@standupmitra.in and help@standupmitra.in
• Official portal: standupmitra.in, which also lists district-wise handholding agencies
• Local escalation: the Lead District Manager, or the nearest SIDBI or NABARD office

Registration on the Stand-Up Mitra portal and the handholding support offered through it are free. No fee should be paid to any agent claiming to arrange a Stand-Up India sanction.