Stand-Up India Scheme: Loans for Women and SC/ST Founders

The Stand-Up India scheme is a flagship initiative by the Government of India designed to promote entrepreneurship at the grassroots level. It focuses specifically on empowering underserved sectors, including Scheduled Castes (SC), Scheduled Tribes (ST), and women entrepreneurs across the country.

By providing easy access to bank loans, the scheme aims to facilitate the setting up of greenfield enterprises in manufacturing, services, or the trading sector. This initiative plays a crucial role in fostering economic independence and job creation among aspiring business owners who often face hurdles in securing traditional financing.

Since its inception, the scheme has been extended multiple times to ensure wider reach. It leverages the extensive network of scheduled commercial banks to ensure that financial support reaches every corner of India.

What is this scheme?

Stand-Up India is a credit-linked scheme that mandates every bank branch of all Scheduled Commercial Banks to provide loans to at least one SC or ST borrower and at least one woman borrower. This structural requirement ensures a systematic flow of credit to these target groups, helping them transition from job seekers to job creators.

The scheme covers 'Greenfield' projects, which refers to the first-time venture of the beneficiary in the manufacturing, services, agri-allied, or trading sectors. To ensure the success of these businesses, the government also provides pre-loan and post-loan handholding support, including training and mentoring.

Borrowers can access the scheme through three potential routes: directly at a bank branch, through the Stand-Up India portal, or via the Lead District Manager (LDM). This multi-channel approach simplifies the application process for first-time entrepreneurs.

Objective

To facilitate bank loans between ₹10 Lakh and ₹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.

Key features

• Composite loan covering 75% of the project cost
• Repayment period of up to 7 years
• Moratorium period of up to 18 months
• Provision for Credit Guarantee Scheme support
• Handholding support for trainees and entrepreneurs
• Loans available for manufacturing, services, and trading sectors

Financial benefits

The scheme provides a composite loan (inclusive of term loan and working capital) between ₹10 Lakh and ₹1 Crore. The loan is intended to cover up to 75% of the total project cost, though this may be adjusted if the borrower's contribution along with convergence support exceeds 25%.

Who is eligible?

• SC/ST and/or women entrepreneurs above 18 years of age
• Loans available only for Greenfield projects
• In case of non-individual enterprises, 51% shareholding must be held by SC/ST or Women
• Borrower should not be in default to any bank or financial institution
• Enterprise must be in manufacturing, services, or the trading sector

Required documents

• ☑ Aadhaar card and PAN card
• ☑ Caste certificate (for SC/ST category)
• ☑ Proof of business address
• ☑ Project report for the greenfield venture
• ☑ Last 3 years' balance sheets (if applicable)
• ☑ Bank account statements

How to apply — step by step

1. Visit the official Stand-Up India portal or a local bank branch
2. Register as a 'New User' on the portal to access the application form
3. Choose between 'Trainee Borrower' or 'Ready Borrower' based on your preparedness
4. Fill in personal, business, and financial details in the online form
5. Upload the required documents including identity and caste proof
6. Select the preferred bank branch for processing the loan application
7. Track application status through the portal dashboard
8. Complete the physical verification and interview process at the bank

Important dates

Important links

Conclusion

The Stand-Up India scheme is a powerful tool for social and economic transformation, providing the much-needed capital to those who have historically lacked access to formal credit. Whether you are a woman starting your first boutique or an SC/ST founder launching a tech firm, this scheme offers a structured pathway to success. Ensure you have a solid project report and valid documentation before applying. For more updates on business grants and government schemes, sign up on YojanaRadar today.

Frequently asked questions

Can a man apply for this loan?

What is a 'Greenfield' project under Stand-Up India?

What is the interest rate for the Stand-Up India loan?

Is any collateral required for the loan?

What is the maximum repayment period?