Stand Up India Scheme: Loan for SC/ST and Women Entrepreneurs

Stand Up India Scheme is a Government of India initiative launched on 5 April 2016 to facilitate composite bank loans of Rs. 10 lakh to Rs. 1 crore to SC, ST, and women entrepreneurs for setting up greenfield enterprises in manufacturing, services, trading, and agriculture-allied activities. The scheme is implemented through all Scheduled Commercial Bank branches and provides comprehensive handholding support through the official Stand Up Mitra Portal.

Introduction of Stand Up India Scheme: A Brief Insight

In India, millions of SC, ST, and women entrepreneurs carry the ambition to build their own business but face the same wall every time they approach a bank, no credit history, no collateral, no prior business experience, and no institutional support to even prepare a proper project report. The Stand Up India Scheme was launched specifically to break down this wall and give these entrepreneurs a real, structured pathway to institutional credit.

Prime Minister Narendra Modi launched the Stand Up India Scheme on 5 April 2016 under the Ministry of Finance, Department of Financial Services. The scheme is implemented through all branches of Scheduled Commercial Banks across India with the objective of providing composite 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 setting up a greenfield enterprise.

A greenfield enterprise means a completely new business being set up for the first time. The scheme covers manufacturing, services, trading, and agriculture-allied activities such as dairy, poultry, fisheries, beekeeping, and food processing. The loan covers up to 85% of the project cost as a composite loan, including both term loan and working capital. The interest rate is capped at not more than MCLR plus 3% plus Tenor premium, with a repayment period of up to 7 years and a moratorium of up to 18 months. The margin money requirement has been reduced to up to 15% of the project cost, with the borrower needing to bring in a minimum of 10% from their own contribution.

One of the most practical features of Stand Up India that most competitors miss is the comprehensive handholding support system built around the scheme. The official Stand Up Mitra Portal developed by SIDBI, offers two borrower registration types. Ready Borrowers who need no support can directly apply and track their loan application online. Trainee Borrowers who need guidance get connected with the Lead District Manager (LDM) and the nearest Stand Up Connect Centre operated by SIDBI or NABARD. A network of more than 8,000 Handholding Agencies supports applicants with training, mentoring, project report preparation, and convergence with other government subsidy schemes.

For applicants who cannot provide collateral, the Credit Guarantee Fund for Stand Up India (CGFSI) provides guarantee cover so that banks can sanction loans without demanding additional security from the borrower.

Since its launch, the scheme has sanctioned a total of Rs. 61,020.41 crore across more than 2 lakh accounts by March 2025. Women entrepreneurs alone account for 1,90,844 accounts with Rs. 43,984.10 crore sanctioned as of November 2024, reflecting how significantly the scheme has strengthened women-led entrepreneurship across India.

SC, ST, and women entrepreneurs who have already set up their businesses and are now looking to scale beyond the greenfield stage can explore the Credit Guarantee Scheme for Startups (CGSS), which provides government-backed guarantee cover for collateral-free loans up to Rs. 20 crore through banks and NBFCs for DPIIT-recognised startups. Those who want to get their startup formally recognised and access tax exemptions can visit our detailed guide on the Startup India Scheme. Early-stage startups looking for seed funding before they are ready for institutional loans can also explore the Startup India Seed Fund Scheme, which provides grants up to Rs. 20 lakh and investment up to Rs. 50 lakh through approved incubators.

SC, ST, and women entrepreneurs searching for more business loan schemes, government entrepreneurship programmes, self-employment support, and Central Government financial assistance can also explore our complete Central Government Schemes List for detailed information according to their business stage and category.

What Is a Greenfield Enterprise Under Stand Up India?

A greenfield enterprise is one of the most important concepts under the Stand Up India Scheme that many applicants misunderstand. A greenfield enterprise simply means a completely new business being set up for the first time by the applicant. The business must not already exist in any form.

Stand Up India Scheme finances only greenfield enterprises. This means the loan cannot be used for expanding, upgrading, or diversifying an existing business. The applicant must be setting up a brand new enterprise from scratch in an eligible sector such as manufacturing, services, trading, or agriculture-allied activities.

For example, if a woman entrepreneur wants to set up a new dairy unit, a new tailoring unit, a new food processing business, or a new retail trading enterprise for the first time, she qualifies as a greenfield entrepreneur under the scheme. However, if she already runs a dairy business and wants to expand it, that would not qualify as a greenfield enterprise under Stand Up India.

Benefits Provided to Eligible Beneficiaries

Stand Up India Scheme provides a comprehensive package of financial support and handholding assistance to help SC, ST, and women entrepreneurs set up their greenfield enterprises.

Financial Benefits

• Composite loan of Rs. 10 lakh to Rs. 1 crore covering both term loan and working capital
• Loan covers up to 85% of the project cost, inclusive of term loan and working capital
• Interest rate capped at not more than MCLR plus 3% plus Tenor premium, which is the lowest applicable rate for that category
• Repayment period of up to 7 years with a moratorium of up to 18 months
• Margin money requirement of up to 15% of the project cost, which can be provided in convergence with the eligible Central or State Government schemes
• Working capital component of up to Rs. 10 lakh provided as an overdraft facility with a RuPay debit card
• Collateral-free support available through the Credit Guarantee Fund for Stand Up India (CGFSI)

Handholding and Support Benefits

• Access to training programmes and skill development support through the Stand Up Mitra Portal
• Mentorship support and Entrepreneurship Development Programme linkage
• Assistance in preparing Detailed Project Reports (DPR)
• Step-by-step guidance through a network of more than 8,000 Handholding Agencies
• Linkage with Skilling Centres, District Industries Centres, and other support agencies
• Support for convergence with other eligible Central and State Government subsidy schemes
• SIDBI and NABARD offices designated as Stand Up Connect Centres (SUCC) provide dedicated support across 79 SIDBI and 503 NABARD offices
• Real-time tracking of loan application status through the Stand Up Mitra Portal

Eligibility Conditions Required to be Fulfilled

The following eligibility conditions apply to applicants seeking loans under the Stand Up India Scheme, as confirmed by official government sources.

• Applicant must belong to the Scheduled Caste (SC) or Scheduled Tribe (ST) category, or be a woman entrepreneur
• Applicant must be above 18 years of age
• Loan is available only for setting up a greenfield enterprise, that is, a first-time new business venture in manufacturing, services, trading, or agriculture-related activities
• For non-individual enterprises such as partnerships or companies, at least 51% of shareholding and controlling stake must be held by an SC/ST or a woman entrepreneur
• Applicant must not be in default with any bank or financial institution at the time of application
• The scheme covers at least one SC/ST borrower and at least one woman borrower per bank branch of all Scheduled Commercial Banks

Eligible Sectors Under Stand Up India

• Manufacturing enterprises
• Services sector enterprises
• Trading sector enterprises
• Agriculture-allied activities, including dairy, poultry, fisheries, beekeeping, food processing, agri-clinic, agro-business centres, sorting, grading, and aggregation

Activities NOT Covered Under Stand Up India

• Crop loans
• Irrigation activities
• Land improvement works

Collateral-Free Support Under Stand Up India

One of the biggest concerns for first-time SC, ST, and women entrepreneurs is the inability to provide collateral security to banks. Stand Up India Scheme addresses this directly through the Credit Guarantee Fund for Stand Up India (CGFSI).

The Government of India created CGFSI specifically to provide guarantee coverage to banks that sanction Stand Up India loans without taking additional collateral from borrowers. When a bank sanctions a loan under Stand Up India and opts for CGFSI coverage, the fund provides a guarantee to the bank against the loan amount. This means the bank can sanction the loan even if the borrower does not have hard collateral to pledge as additional security.

This is a significant relief for first-time entrepreneurs from SC, ST, and women categories who are starting their first business and naturally do not have assets to offer as collateral. Applicants should specifically ask their bank about CGFSI coverage when applying for their Stand Up India loan.

Documents Required to be Attached

Applicants applying for a loan under the Stand Up India Scheme through their bank branch or the Stand Up Mitra Portal should keep the following documents ready before submitting their application.

• Aadhaar Card
• PAN Card
• Caste Certificate for SC/ST applicants issued by the competent authority
• Residence proof
• Business plan or Detailed Project Report (DPR)
• Bank account details and the last 6 months’ bank statements
• Educational qualification certificates, wherever applicable
• Partnership deed or incorporation documents for non-individual enterprises
• Proof of 51% SC/ST or women ownership for non-individual enterprises
• Income documents wherever required by the bank
• GST registration certificate, wherever applicable
• Passport-sized photographs

Exact document requirements may vary across banks. Applicants should confirm the specific requirements with their chosen bank branch before submitting the loan application.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

Eligible SC, ST, and women entrepreneurs can access the Stand Up India Scheme through three official routes. Applicants can choose any of these routes based on their comfort and need for support.

Route 1: Directly at the Bank Branch

Step 1: Visit the nearest branch of any Scheduled Commercial Bank and request information about the Stand Up India Scheme.

Step 2: Submit your loan application along with required documents, including Aadhaar, PAN, caste certificate for SC/ST, business plan, and project report.

Step 3: The bank evaluates your application based on its credit assessment framework and the Stand Up India Scheme guidelines.

Step 4: After approval, the bank sanctions the composite loan covering the term loan and working capital as per project requirements.

Route 2: Through Stand Up Mitra Portal

Step 1: Visit the official Stand Up Mitra Portal and register as a new applicant.

Step 2: Choose your borrower type. Select Ready Borrower if you do not need handholding support. Select Trainee Borrower if you need guidance and training support before applying.

Step 3: For Ready Borrowers, an application number is generated and shared with the selected bank, Lead District Manager (LDM), and the relevant SIDBI or NABARD office for processing.

Step 4: For Trainee Borrowers, the portal links you with the LDM of your district and the nearest SIDBI or NABARD Stand Up Connect Centre for handholding, training, and project report assistance.

Step 5: Submit the complete loan application with all required documents through the portal or the linked bank branch.

Step 6: Track your loan application status in real time through the Stand Up Mitra Portal.

Route 3: Through Lead District Manager (LDM)

Step 1: Contact the Lead District Manager of your district, who coordinates the Stand Up India Scheme implementation at the district level.

Step 2: The LDM provides guidance on the application process, connects you with the relevant bank branch, and facilitates the loan application as per scheme guidelines.

Stand Up India vs PM Mudra Yojana

Both Stand Up India and PM Mudra Yojana are Government of India loan schemes that support entrepreneurs. However, they are fundamentally different in purpose, eligibility, and loan amount. Understanding the difference helps applicants choose the right scheme for their needs.

SC and ST entrepreneurs and women entrepreneurs setting up a new business for the first time and needing a loan above Rs. 10 lakh should consider Stand Up India. Entrepreneurs from any category setting up or expanding a small existing business with a smaller loan requirement should explore the PM Mudra Yojana.

Important Links Available

• Stand Up India Official Portal, Stand Up Mitra.
• Stand Up India Scheme Features and Details.
• Stand Up India Scheme Guidelines.
• Department of Financial Services, Ministry of Finance.
• Small Industries Development Bank of India, SIDBI.

Contact Details in Case of Help Needed

Applicants facing issues related to Stand Up India Scheme eligibility, loan application, handholding support, or bank linkage can contact the following official channels.

• Stand Up India Helpline: 1800-180-1111 (Toll Free)
• Department of Financial Services, Ministry of Finance
  Jeevan Deep Building, Parliament Street,
  New Delhi 110001
• SIDBI Head Office
  MSME Development Institute Building,
  Lucknow 226001
• Lead District Manager (LDM): Contact the LDM of your district for local guidance and bank linkage support

Frequently Asked Questions (FAQs)

Q. What is the Stand Up India Scheme?

Ans. Stand Up India Scheme is a Government of India initiative launched on 5 April 2016 to facilitate bank loans between Rs. 10 lakh and Rs. 1 crore to SC, ST, and women entrepreneurs for setting up greenfield enterprises in manufacturing, services, trading, and agriculture-allied activities.

Q. Who can apply under the Stand Up India Scheme?

Ans. SC/ST entrepreneurs and women entrepreneurs above 18 years of age can apply. For non-individual enterprises, at least 51% shareholding and controlling stake must be held by an SC/ST or a woman entrepreneur.

Q. What is a greenfield enterprise under Stand Up India?

Ans. A greenfield enterprise is a first-time new business venture being set up by the applicant in manufacturing, services, trading, or eligible agriculture-allied activities. The scheme does not cover the expansion of existing businesses.

Q. What is the maximum loan available under Stand Up India?

Ans. Eligible applicants can receive a composite loan of up to Rs. 1 crore covering both term loan and working capital components.

Q. What is the interest rate under the Stand Up India Scheme?

Ans. The interest rate is the lowest applicable rate of the bank for that category and must not exceed MCLR plus 3% plus Tenor premium.

Q. What is the repayment period under Stand Up India?

Ans. The repayment period is up to 7 years with a moratorium of up to 18 months.

Q. How much margin money is required under Stand Up India?

Ans. Margin money requirement is up to 15% of the project cost, which can be provided in convergence with eligible Central or State Government schemes. The borrower must contribute a minimum of 10% of the project cost from their own funds.

Q. Is collateral required for Stand Up India loans?

Ans. Besides primary security, loans may be secured by collateral or covered under the Credit Guarantee Fund for Stand Up India (CGFSI), which provides collateral-free guarantee support.

Q. Can agricultural activities be financed under Stand Up India?

Ans. Yes. Agriculture-allied activities such as dairy, poultry, fisheries, beekeeping, food processing, agri-clinic, and agro-business centres are eligible. However, crop loans, irrigation, and land improvement works are not covered under the scheme.

Q. What is the Stand Up Mitra Portal?

Ans. Stand Up Mitra Portal at standupmitra.in is the official online platform developed by SIDBI for the Stand Up India Scheme. It provides online registration, loan application tracking, handholding support, training linkage, and connection with banks and Lead District Managers.

Q. How can applicants access handholding support under Stand Up India?

Ans. Applicants can register as a Trainee Borrower on the Stand Up Mitra Portal to access training, mentoring, project report preparation assistance, and guidance through a network of more than 8,000 Handholding Agencies and SIDBI and NABARD offices.

Q. What is the total amount sanctioned under Stand Up India so far?

Ans. As per official government data, the total amount sanctioned under the Stand Up India Scheme has grown to Rs. 61,020.41 crore by 17 March 2025 since the scheme was launched in 2016.

Q. Through which banks can the loan be availed?

Ans. The Stand Up India Scheme is operated through all branches of the Scheduled Commercial Banks across India.

Q. What is the difference between Stand Up India and Startup India?

Ans. Stand Up India is a loan facilitation scheme specifically for SC, ST, and women entrepreneurs to set up greenfield enterprises through bank loans. Startup India is a DPIIT initiative focused on recognition, tax benefits, a funding ecosystem, and support for innovative and scalable startups across all categories.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.