The Stand Up India Scheme is an initiative launched by the Government of India in 2016 to promote entrepreneurship among women, scheduled castes, and scheduled tribes. The main aim of the scheme is to provide financial help as loans to at least one Scheduled Caste/Scheduled Tribe borrower and one woman borrower per bank branch for setting up greenfield enterprises.
The Stand Up India Scheme offers bank loans ranging from ₹10 lakhs to ₹1 crore, which can be availed by eligible borrowers to set up new enterprises and start their business ventures.
The main goal of the Stand Up India Scheme is to empower marginalized groups such as Scheduled Castes, Scheduled Tribes, and women economically. It helps them get loans from banks to start their businesses in different industries.
Here is the overview of the Stand Up India Scheme:
|₹10 lakh to ₹1 crore
|Decided based on: Bank’s MCLR + 3% + Tenure Premium
|Max. 7 years with a Moratorium Period of up to 18 months
|Min. age criteria
|18 years for SC/ST and Women Entrepreneur
|Loans offered only Green Field Projects (first-time venture)
|Shareholding or Controlling stake
|51% for Non-Individual Enterprises
Here are the key eligibility criteria for the Stand Up India Scheme:
Only Scheduled Caste/Scheduled Tribe individuals and women entrepreneurs above 18 years of age can apply for the scheme.
Greenfield projects can apply for the loan scheme.
For non-individual entities, at least 51% ownership and controlling stake should be held by SC/ST and women entrepreneurs.
Applicants should not have defaulted on payments or have overdue at any other bank or financial institution.
The enterprise has to be engaged in manufacturing, services, or trading activities. Agri-allied sectors are also eligible.
Looking for a Buiness Loan?
The Stand Up India Scheme offers many benefits for marginalized sections like women, SC and ST entrepreneurs. Here are the features and benefits of the Stand-Up India Scheme explained in points:
Loan Nature: The Stand-Up India scheme offers a composite loan, inclusive of both term loan and working capital loan components.
Loan Amount Coverage: The scheme provides coverage for up to 75% of the total project cost, easing the financial burden on entrepreneurs.
Interest Rate Assurance: Borrowers benefit from the assurance of the lowest applicable interest rate offered by the bank for their specific category. The interest rate is calculated within the formula (base rate * MCLR + 3% + tenor premium).
Security Options: In addition to the primary security, borrowers have the flexibility to secure the loan with collateral or opt for a guarantee from the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL). The final decision on this rests with the lender.
Repayment Period: The Stand-Up India loan allows for a reasonable repayment period of up to 7 years, providing borrowers with a manageable timeframe to pay back the borrowed amount.
Modes of Disbursement for Different Loan Amounts: For loan amounts up to Rs.10 lakh, the disbursement is an overdraft. Borrowers receive a RuPay debit card for convenient access to funds. For loan amounts exceeding Rs.10 lakh, the sum is sanctioned as a cash credit limit, catering to larger financial needs.
The Stand Up India Scheme requires certain documents to be submitted along with the loan application. These include standard KYC documents for identity and address proof along with additional supporting documents related to the business for which the loan is being availed. The key documents needed are:
Filled application form with passport-sized photographs
Identity Proof: Passport, Driving License, Voter's ID, PAN card, etc.
Residence Proof: Voter's ID, Passport, Recent Electricity/Phone Bill, Property Tax Receipt, etc.
Business Address Proof
Partnership Deed (if applicable)
Lease Deeds/Rent Agreements
Last 3 Years Balance Sheets
Assets and Liabilities Statement of Promoters & Guarantors
Any other document required by the bank
Here's how you can apply for the Stand-Up India scheme in simple steps:
1. Visit the Official Portal www.standupmitra.in: Register basic details including location, category, and proposed business.
2. Fill Application Form: Provide additional information - loan amount, premises, experience, etc.
3. Submit Registration: Complete the registration process after filling in and submitting details.
4. Apply to Bank: Approach the bank branch or apply online for a loan through the bank website.
5. Loan Approval: Submit documents to the bank, and get the loan sanctioned if eligible.
Ready to take the next step?
The Stand Up India Scheme is a government initiative to promote entrepreneurship among women, SCs, and STs. It provides composite loans covering both term and working capital for starting a new business or expanding an existing one.
Individuals above 18 years from SC, ST, or women categories, intending to set up a greenfield enterprise in manufacturing, services, or trading sectors, are eligible.
Visit the official Stand-Up India portal at www.standupmitra.in, register, and answer a set of questions to determine your eligibility.
The official application process is conducted through the Stand-Up India portal at www.standupmitra.in.
No, the scheme allows only one loan per family for setting up or acquiring a business unit.
Yes, individuals from eligible categories can apply for the Stand Up India Scheme to start their business ventures.
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