What is Stand-Up India?
Stand-Up India was launched by the Government of India on April 5, 2016, as part of the Startup India initiative. The scheme aims to promote entrepreneurship among women and Scheduled Caste (SC) and Scheduled Tribe (ST) communities who often face challenges in accessing formal credit.
The scheme facilitates bank loans between ₹10 lakh to ₹1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks. These loans are provided for setting up new enterprises in the manufacturing, trading, or services sector.
Key Objectives
- • Promote entrepreneurship among women and SC/ST communities
- • Enable economic participation and empowerment
- • Create employment opportunities
- • Facilitate bank credit for underserved segments
- • Support new enterprises in manufacturing, trading, and services
Salient Features
Loan Amount
₹10 lakh to ₹1 crore per eligible borrower
Nature of Loan
Composite loan comprising term loan and working capital
Security
Credit guarantee through CGTMSE; collateral as per bank policy
Interest Rate
Lowest applicable rate of the bank (base rate + spread)
Eligibility Criteria
To be eligible for a loan under Stand-Up India, applicants must meet the following criteria:
Who Can Apply?
Women Entrepreneurs
Any woman entrepreneur (irrespective of caste/category) can apply. In case of a company, at least 51% of shareholding and controlling stake should be held by women.
SC Entrepreneurs
Individuals belonging to Scheduled Castes (SC) with valid caste certificate. For companies, at least 51% stake must be held by SC individuals.
ST Entrepreneurs
Individuals belonging to Scheduled Tribes (ST) with valid caste certificate. For companies, at least 51% stake must be held by ST individuals.
Business Eligibility
- • Must be a new enterprise (Greenfield project)
- • Can be in manufacturing, trading, or services sector
- • Should not be a subsidiary of an existing business
- • Borrower should not be in default to any bank/financial institution
- • Applicant must not have availed benefits under similar schemes
Entity Types Covered
Proprietorship
Individual ownership
Partnership
Registered partnership firm
Company
Private Limited Company
Loan Features
Stand-Up India loans come with several favorable terms designed to support new entrepreneurs:
Loan Structure
Term Loan Component
For purchase of equipment, machinery, vehicles, furniture, and fixtures
Working Capital Component
For inventory, raw materials, operational expenses, and cash flow management
Financial Terms
| Aspect | Details |
|---|---|
| Loan Amount | ₹10 lakh to ₹1 crore |
| Margin Money | 10% - 15% of project cost |
| Interest Rate | Base rate + lowest spread (competitive rate) |
| Repayment Period | Up to 7 years with moratorium up to 18 months |
| Security | Primary security (assets financed) + CGTMSE cover |
Repayment Schedule
- • Moratorium Period: Up to 18 months (no EMI during this period)
- • Maximum Tenure: 7 years including moratorium
- • EMI Structure: Monthly installments after moratorium
- • Prepayment: Allowed without penalty in most cases
Application Process
The Stand-Up India application can be submitted both online and offline:
Step 1: Check Your Eligibility
Ensure you meet the criteria as SC/ST or woman entrepreneur. Gather your caste certificate (if applicable) and identity documents.
Step 2: Prepare Business Plan
Develop a comprehensive project report covering business model, market analysis, financial projections, and fund utilization plan.
Step 3: Select Bank and Branch
Approach the nearest branch of any Scheduled Commercial Bank. All public and private sector banks participate in this scheme.
Step 4: Submit Application
Fill the Stand-Up India application form. Submit online through the Stand-Up India portal or physically at the bank branch.
Step 5: Bank Processing
Bank evaluates your application, verifies documents, assesses project viability, and conducts personal discussion.
Step 6: Sanction and Disbursement
Upon approval, loan agreement is executed. Funds are disbursed in installments based on project milestones.
Online Application Portal
Visit the official Stand-Up India portal at www.standupmitra.in for:
- • Online application submission
- • Tracking application status
- • Access to resources and templates
- • Connecting with handholding agencies
- • Finding nearest bank branches
Composite Loan Scheme Structure
Stand-Up India provides composite loans that combine term loan and working capital facilities:
Term Loan Component
- • Purpose: Purchase of machinery, equipment, vehicles, tools
- • Tenure: 5-7 years with moratorium
- • Security: Assets purchased with the loan
- • Repayment: Monthly/quarterly EMIs after moratorium
Working Capital Component
- • Purpose: Inventory, raw materials, operating expenses
- • Facility: Cash credit or overdraft
- • Review: Annual review and renewal
- • Interest: Charged only on utilized amount
Example Loan Structure
For a manufacturing project of ₹50 lakhs:
- • Total Project Cost: ₹50,00,000
- • Margin Money (15%): ₹7,50,000
- • Bank Loan: ₹42,50,000
- • Term Loan (Machinery): ₹35,00,000
- • Working Capital: ₹7,50,000
Handholding Support
Stand-Up India provides comprehensive handholding support to ensure the success of beneficiary entrepreneurs:
Types of Support Available
Pre-Loan Support
- • Business plan preparation
- • Project report development
- • Application filling assistance
- • Document preparation
Post-Loan Support
- • Mentorship and guidance
- • Marketing assistance
- • Technical support
- • Compliance guidance
Handholding Agencies
- • Rural Self Employment Training Institutes (RSETIs)
- • Small Industries Development Bank of India (SIDBI)
- • National Small Industries Corporation (NSIC)
- • Lead District Managers (LDMs)
- • Industry Associations and Chambers
- • State-level agencies and corporations