Stand-Up India Loan Scheme: Eligibility, Benefits & Complete Application Process
India’s entrepreneurial landscape has expanded tremendously over the last decade. Yet, many aspiring business owners—especially women and individuals from SC/ST communities—continue to face significant challenges in securing business loans. To close this gap and encourage inclusive economic participation, the Government of India launched the Stand-Up India Scheme in 2016.
This flagship initiative ensures that every bank branch in India supports at least one woman entrepreneur and one SC/ST entrepreneur by providing them loans for new business ventures. Whether you aim to launch a manufacturing unit, start a service enterprise, or set up a trading business, the scheme offers a strong financial foundation with loans ranging from ₹10 lakh to ₹1 crore.
This comprehensive guide explains the scheme, its eligibility, benefits, loan structure, documents required, and a step-by-step application process.
What Is the Stand-Up India Loan Scheme?
The Stand-Up India Scheme provides bank loans from ₹10 lakh to ₹1 crore to women and SC/ST entrepreneurs to set up greenfield enterprises, which are newly established businesses with no prior operational history.
Eligible businesses include:
- Manufacturing enterprises
- Services
- Trading activities
- Agri-allied sectors (like food processing, fisheries, poultry, etc.)
The scheme is implemented through all Scheduled Commercial Banks, making it accessible across India.
Key Features of Stand-Up India Scheme:
1. Loan Amount:
- Minimum: ₹10 lakh
- Maximum: ₹1 crore
2. Purpose of the Loan:
To establish a newly formed business (greenfield project).
3. Composite Loan Structure:
The loan may include:
- Term loan (machinery, construction, fixed assets)
- Working capital loan (daily business expenses)
4. Margin Money Requirement:
- The entrepreneur must contribute 10% of the project cost
- Up to 15% margin money support available through government guarantee schemes
5. Repayment Tenure:
- Up to 7 years
- Moratorium period up to 18 months
6. Collateral:
Not mandatory
(Loans are backed by the Credit Guarantee Fund Scheme for Stand-Up India Loans – CGFSIL)
7. Beneficiary Allocation:
Each bank branch must support:
- 1 SC/ST entrepreneur
- 1 Woman entrepreneur
Eligibility Criteria for Stand-Up India Loan:
Eligible Categories:
Applicant must be:
- A woman entrepreneur, OR
- A member of SC/ST community
For partnerships/companies:
- At least 51% shareholding must be held by a woman or SC/ST member.
2. Type of Business:
- Must be a greenfield project
- No past business under the same name should exist
3. Age Requirement:
- Minimum age: 18 years
- No official upper age limit
4. Business Activities Allowed:
- Manufacturing
- Services
- Trading
- Agri-allied business operations
5. Financial Background:
- Applicant must not be a loan defaulter
- Good credit score improves approval chances
Documents Required for Stand-Up India Loan:
Basic KYC Documents:
- Aadhaar Card
- PAN Card
- Passport-size photos
- Address proof
Business Documents:
- Detailed project report
- Business plan
- Cost & revenue projections
- Machinery quotations
Financial Proof:
- Bank statements (6–12 months)
- ITR (if available)
- GST details (if applicable)
Category Certificate:
- Caste certificate (for SC/ST applicants)
- Proof of woman ownership (for partnerships/companies)
Other Supporting Documents:
- Rent agreement / property paper (if applicable)
- Business location proof
Benefits of the Stand-Up India Scheme:
1. Promotes Inclusive Entrepreneurship:
By specifically supporting women and SC/ST communities, the scheme promotes equal access to financial opportunities.
2. Higher Loan Limit:
Loans up to ₹1 crore, which is significantly higher than schemes such as Mudra Loans.
3. Minimal Collateral:
Government guarantees reduce the need for additional security.
4. Comfortable Repayment:
Long tenure up to 7 years with moratorium option.
5. End-to-End Handholding Support:
The Stand-Up India portal connects entrepreneurs with:
- Facilitators
- Lenders
- Training agencies
6. Encourages New Ventures
Since only greenfield projects are eligible, the scheme empowers individuals to launch fresh, innovative businesses.
Loan Structure of Stand-Up India Scheme:
1. Composite Loan:
Covers:
- Fixed assets
- Working capital
2. Margin Contribution
- 10% contribution by the entrepreneur
- Rest funded by bank + government margin support
3. Interest Rates:
- Based on bank’s internal rating
- Linked to MCLR + applicable spread
- Competitively priced
How to Apply for Stand-Up India Loan?
Option 1: Online Application via Portal
Step 1: Visit the official Stand-Up India portal
(Search: Stand-Up India Portal)
Step 2: Select “Apply for Loan”
Step 3: Fill in personal and business details
- Category
- Business idea
- Project cost
Step 4: Select a Facilitator (Optional)
For assistance with business plans & documentation.
Step 5: Choose a Preferred Bank & Branch
Step 6: Upload documents
Step 7: Bank Review
Bank may call for:
- Personal discussion
- Document verification
- Clarifications
Step 8: Loan Sanction
After approval, funds are disbursed directly to your account.
Option 2: Offline Application
Visit any scheduled commercial bank branch and request the Stand-Up India Loan application form. Submit all required documents and follow the bank’s verification process.
Who Should Apply?
Option 1: Online Application via Portal
Step 1: Visit the official Stand-Up India portal
(Search: Stand-Up India Portal)
Step 2: Select “Apply for Loan”
Step 3: Fill in personal and business details
- Category
- Business idea
- Project cost
Step 4: Select a Facilitator (Optional)
For assistance with business plans & documentation.
Step 5: Choose a Preferred Bank & Branch
Step 6: Upload documents
Step 7: Bank Review
Bank may call for:
- Personal discussion
- Document verification
- Clarifications
Step 8: Loan Sanction
After approval, funds are disbursed directly to your account.
Option 2: Offline Application
Visit any scheduled commercial bank branch and request the Stand-Up India Loan application form. Submit all required documents and follow the bank’s verification process.
Who Should Apply?
This scheme is ideal for:
- Women starting new ventures
- SC/ST entrepreneurs
- Startups needing sizable capital
- New manufacturing units
- Service businesses
- Trading enterprises
If you belong to the eligible category and plan to launch a fresh business, Stand-Up India is one of the best government-backed options.
Conclusion:
The Stand-Up India Scheme is a transformative initiative for empowering underrepresented entrepreneurs. With substantial loan limits, minimal collateral requirements, flexible repayment terms, and strong government backing, the scheme has already helped thousands of individuals turn their business ideas into profitable ventures.
If you’re a woman entrepreneur or an SC/ST business aspirant looking to start a new enterprise, the Stand-Up India Scheme could be the opportunity that helps you bring your entrepreneurial vision to life.
Disclaimer: This content is for educational purposes only and should not be considered financial, legal, or investment advice.
