The Stand-Up India Scheme was launched by Government of India on 5th April 2016 to promote entrepreneurship among women and Scheduled Caste (SC) & Scheduled Tribe (ST) communities.

The scheme is similar to, but different from, Start-up India, as both are enablers and beneficiaries of other key government schemes such as Make in India, Industrial Corridor, Dedicated Freight Corridor, Sagarmala, Bharatmala, Digital India, BharatNet and UMANG.

While the Start-up India component deals with innovative enterprises (Start-up), the Stand-up India Scheme seeks to reach out to aspiring entrepreneurs from SC, ST and women so that, at least 2.5 lakh such borrowers are able to access loans from bank branches for supporting new enterprises.

The Stand-up India scheme, therefore, is the next step in ensuring comprehensive financial inclusion.


The objective of the scheme is to facilitate composite bank loans (including term loan and working capital) between Rs. 10 lakh and Rs. 1 crore to at least one SC or ST borrower and one woman borrower per bank branch (without collateral) for setting up a Greenfield (New) enterprise.

This enterprise can be set up in either of these sectors—manufacturing, services, agri-allied activities or trading. In case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or women entrepreneur.


1. SC/ST and/or woman entrepreneurs, above 18 years of age.

2. Loans under the scheme is available for only green field project. Green field signifies, in this context, the first-time venture of the beneficiary in the manufacturing, services, agri-allied activities or the trading sector.

3. In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.

4. Borrower should not be in default to any bank/financial institution.

Duration of the Scheme

The Government of India has extended the duration of the ‘Stand Up India Scheme’ up to the year 2025.

Steps for availing Stand-Up India Scheme

The scheme, which covers all branches of Scheduled Commercial Banks, can be accessed in three ways:

Directly at the branch or,

Through Stand-Up India Portal ( or,

Through the Lead District Manager (LDM).

The portal acts as a virtual facilitator to provide linkages in the financial services eco-system. It provides a unique match making platform to loan seekers, lenders as also handholding agencies.

It has 3 important features viz.

(i) hand holding support;

(ii) loans from banks and

(iii) guarantee support for collateral free lending.

A potential borrower has the option of registering on the portal right away by simply visiting it or registering later.

This portal is accessible from home, at Common Service Centres (CSCs), through a bank branch (through the nodal officer for MUDRA at the branch) or through the LDM.

In branches where internet access is restricted, the branch will guide the potential borrower to an internet access point.

The Stand-Up India Portal is interactive. ( It hosts information about various schemes, subsidy, FAQs and various entities providing hand holding support to the borrower.

Scheme Guidelines

Nature of Loan

Composite loan (inclusive of term loan and working capital) between Rs.10 lakh and up to Rs.100 lakh.

Purpose of Loan

For setting up a new enterprise in manufacturing, services, agri-allied activities or the trading sector by SC/ST/Women entrepreneur.

Size of Loan

Composite loan of 85% of the project cost inclusive of term loan and working capital. The loan will not be applicable if the borrower’s contribution, along with convergence support from any other schemes, exceeds 15% of the project cost.

Interest Rate

The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).


Besides primary security, the loan may be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.


The loan is repayable in 7 years with a maximum moratorium period of 18 months.

Working Capital

For drawal of Working capital up to Rs. 10 lakhs, the same may be sanctioned by way of overdraft. Rupay debit card to be issued for convenience of the borrower.

Working capital limit above Rs. 10 lakhs to be sanctioned by way of Cash Credit limit.

Margin Money

The scheme envisages 15% margin money, which can be provided in convergence with the Central / State schemes. While such schemes can be drawn upon for availing admissible subsidies or for meeting margin money requirements, in all cases, the borrower shall be required to bring in minimum of 10% of the project cost as own contribution.

Benefits of Stand-Up India Scheme:

1. Stand Up India scheme caters to promoting entrepreneurship amongst women, SC & ST category i.e. those sections of the population facing significant hurdles due to lack of advice/mentorship as well as inadequate and delayed credit.

2. It caters to both ready and trainee borrowers.

3. Apart from providing credit facility, Stand Up India Scheme also envisages extending handholding support to the potential borrowers. The web portal designed by SIDBI for Stand-Up India Scheme also provides handholding 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.

4. It provides for convergence with Central/State Government schemes. Stand-Up India has been interlinked with existing schemes of State Government and Government of India.

5. The scheme is expected to cover 85% of the project cost.

6. For availing Loans under this scheme there is no need for Collateral Security. To extend collateral free coverage, Government of India has set up the Credit Guarantee Fund for Stand-Up India (CGFSI).

7. The interest rate is very less in Stand-up India scheme compared to loans of other schemes

8. Long loan repayment period. The loan is repayable in 7 years with a maximum moratorium period of 18 months.

9. A Rupay debit card would be provided to borrower for the withdrawal of credit.

Stand-Up India Scheme Low-Cost Finance for Women & SC-ST Entrepreneurs

CHECK LIST – Stand- Up India Loan Application

1. Proof of Identity: Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of proprietor, partner of director (if a company)

2. Proof of residence: Recent telephone bills, electricity bill, property tax receipt /Passport / voter’s ID Card of Proprietor, partner of Director (if a company)

3. Proof of business Address

4. Applicant should not be defaulter in any Bank/F.I.

5. Memorandum and articles of association of the Company / Partnership Deed of partners etc.

6. Assets and liabilities statement of promoters and guarantors along with latest income tax returns.

7. Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.

8. SSI / MSME registration if applicable.

9. Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan

10. Photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities.

11. Documents to establish whether the applicant belongs to SC/ST Category, wherever applicable.

12. Certificate of incorporation from ROC to establish whether majority stake holding in the company is in the hands of a person who belongs to SC/ST/Woman category.

For Cases With Exposure above 25 lakh.

13. Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken addresses of all offices and plants, shareholding pattern etc.

14. Last three years balance sheets of the Associate / Group Companies (if any).

15. Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity of utilization assumed, production, sales, projected profit and loss and balance sheets for the tenor of the loan, the details of labour, staff to be hired, basis of assumption of such financial details etc.

16. Manufacturing process if applicable, major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major-competitors and the company’s strength and weaknesses as compared to their competitors etc.

(The check list is only indicative and not exhaustive)

Stand Up India: Progress and Initiatives

Banks have sanctioned Rs. 25,586 crore (US$ 3.41 billion) to about 114,322 beneficiaries under the Stand-Up India Scheme in the last five years since inception for promoting entrepreneurship among women and SCs & STs.

As of March 23, 2021, the scheme has benefited 93,094 women entrepreneurs with an outstanding loan of Rs. 21,200 crore (US$ 2.83 billion).

About 16,258 entrepreneurs belonging to the SC category have received loans worth Rs. 3,335.87 crore (US$ 445.73 million) and 4,970 entrepreneurs from the ST category have received loans worth Rs. 1,049 crore (US$ 140.16 million).

As a part of media awareness and reporting, the following initiatives were taken up by the government to promote the scheme:

A Start Up India Twitter Handle has been created

An official website has been created and initiative to foster better awareness about Stand-Up India has also been initiated

Also, to encourage others, motivating stories will also be blogged everyday on the online web portal of the scheme

To spread awareness about the scheme on social media platforms, a devoted Facebook page has also been set up.


As of February 2021, the scheme has expanded by 21.3% in terms of the number of loan applications sanctioned by lending institutions and increased by 21.1% in the amount sanctioned in the last one year.

Observing phenomenal growth in the number of applicants and sanctioned loans, Stand Up India has certainly created a strong roadmap for welfare of women and the SC/ST population. This growth is likely to continue in future owing to the vast supportive and financial measures taken by the government to uplift the backward society.

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Qualification: CA in Practice
Location: KOLKATA, West Bengal, India
Member Since: 26 Sep 2021 | Total Posts: 3
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