Stand-Up India is a government initiative that aims to promote entrepreneurship among the scheduled caste (SC), scheduled tribe (ST), and women communities in India. The scheme was launched by Prime Minister Narendra Modi on April 5, 2016. The objective is to facilitate bank loans between Rs. 10 lakh and Rs. 1 crore to at least one SC/ ST and one woman borrower per bank branch for setting up a Greenfield enterprise. The scheme also provides hand holding support, training, mentoring, and guidance to the potential entrepreneurs through a web portal called Stand-Up India Portal.
What is Stand-Up India scheme?
The scheme is implemented by the Department of financial services (DFS), Ministry of finance, Government of India. The Small Industries Development Bank of India (SIDBI) is the nodal agency for the scheme.
The scheme covers both manufacturing and service sector activities, including trading. The enterprises can be in the form of sole proprietorship, partnership, company, or cooperative society. The scheme also covers activities allied to agriculture.
Stand-up India Scheme |
Specifications |
Interest Rate |
Bank’s MCLR + 3% + Tenor Premium |
Repayment Tenure |
Maximum 7 years with Moratorium Period up to 18 months |
Minimum Age Criteria |
18 years for SC/ST and Women Entrepreneurs |
Loan Amount |
Rs. 10 lakh – Rs. 1 crore |
Loans Offered For |
Only Green Field Projects (first-time ventures) |
Shareholding or Controlling Stake |
51% for Non-Individual Enterprises |
Borrower’s Financial Repayment Status |
Must not have defaulted to any bank or NBFC |
Margin |
Maximum 15%, can be offered with Central/State Schemes |
Working Capital Limit |
Up to Rs. 10 lakh in the form of Cash Credit limit |
What is the Impact of the Stand Up India Scheme?
The Stand-Up India Scheme is a government initiative to support entrepreneurship among SC/ST and women in India. The scheme aims to provide bank loans of Rs. 10 lakh to Rs. 1 crore to at least one SC/ST and one-woman borrower per bank branch for setting up a new enterprise in manufacturing, services or trading sector. The scheme also offers handholding support, training, mentoring and Rupay debit cards to the borrowers. The impact of the scheme is to promote economic empowerment, social inclusion and job creation for the marginalised groups in India.
Features and benefits of the Stand-Up India scheme
Some of the key features and benefits of the Stand-Up India scheme are:
- It provides a composite loan (inclusive of Term Loan and working capital) between Rs. 10 lakh and Rs. 1 crore to eligible borrowers for setting up a Greenfield enterprise.
- The loan is repayable in 7 years with a maximum moratorium period of 18 months.
- The loan is secured by collateral or guarantee of the credit guarantee fund scheme for Stand-Up India loans (CGFSIL).
- The loan is available at the lowest applicable rate of the bank for that category (not exceeding MCLR + 3% + tenure premium).
- The borrower is given a rupay debit card for convenience and ease of operation.
- The borrower is also eligible for a subsidy under the differential rate of Interest (DRI) scheme, subject to certain conditions.
- The borrower can avail hand holding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filling, work shed/ utility support services, subsidy schemes etc.
- The borrower can access the Stand Up India Portal for information, registration, application, and tracking of the loan status.
Stand-Up India scheme eligibility
The eligibility criteria for availing a loan under the Stand-Up India scheme are:
- The borrower should be an Indian citizen above 18 years of age.
- The borrower should belong to the SC/ ST or woman category. In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ ST or woman entrepreneur.
- The borrower should not be in default to any bank or financial institution.
- The borrower should not have availed any other central or state government-sponsored scheme for the same purpose.
Stand-Up India loan interest rates
The interest rates for the loans under the Stand-Up India scheme are determined by the respective banks as per their internal policies. However, the interest rate cannot exceed the lowest applicable rate of the bank for that category (not exceeding MCLR + 3% + tenure premium). The interest rate may vary depending on the credit rating, risk profile, collateral security, and other factors.
As per the data available on the Stand-Up India Portal as on September 21, 2023, the average interest rate for loans sanctioned under the scheme was 9.67%.
Steps to Register for the Stand-Up India scheme
The steps to register for the Stand-Up India scheme are:
- Visit the official portal of Stand-Up India and click on the “Register” button.
- Enter the details of the business location, category, nature of business, loan amount, description of business, premises details etc.
- Enter the personal details such as name, gender, date of birth, mobile number, email id etc.
- Select whether hand-holding support is required or not.
- Click on the “Register” button to complete the registration process.
- After registration, login to the portal using your credentials and apply for a loan by filling up an online application form.
- Upload the required documents such as proof of identity, proof of residence, business plan etc.
- Submit the application form and track its status online.
Alternatively, one can also approach a nearby bank branch, a lead district manager, or a hand-holding agency for applying for a loan under the scheme.
Documents required for the Stand-Up India scheme
The documents required for availing a loan under the Stand Up India scheme are:
- Proof of identity: Voter’s ID card/ passport/ driving licence/ PAN card/ signature identification from present bankers of proprietor, partner, or director (if a company).
- Proof of residence: Recent telephone bills, electricity bill, property tax receipt/ passport/ voter’s ID card of proprietor, partner, or director (if a company).
- Proof of category: Caste certificate/ Aadhaar card/ any other document issued by the competent authority for SC/ ST borrowers. Self-declaration/ affidavit/ any other document issued by the competent authority for women borrowers.
- Proof of business: Business plan/ project report/ feasibility report/ market survey report etc.
- Proof of collateral security: Property papers/ valuation report/ insurance policy etc.
- Proof of income: Income tax returns/ audited financial statements/ bank statements etc.
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