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Stand up India Scheme

  • 22-Apr-2022
Stand up India Scheme

Standup India scheme offers financial support to women entrepreneurs and people who come under the category of SC and ST of the society.  


It was introduced by the Indian government to provide credit services majorly to the people of SC and ST categories.  


The main purpose of the Stand-up India scheme is to help lenders in providing loan amounts between Rs. 10 lakhs to Rs. 1 crore to one Scheduled Cates (SC), one Scheduled Tribes (ST), and one-woman entrepreneur in each bank branch of all commercial banks for setting up greenfield projects.  


The portal of Stand-up India provides the digital platform based on 3 pillars among entrepreneurs from the category of SC, ST, and Women through: 

  1. Providing information on financing
  2. Handholding support
  3. Credit guarantee


Key highlights 

Name of the scheme  Stand-up India loan scheme 
Launched by  Government of India 
Beneficiary  Citizens of India 
Launched on 15th August 2015 
Mode of application  Online  
Objective  To offer financial support for setting up a greenfield project. 


Features of Stand-up India scheme 

  • Nature of loan - The loan offered under this scheme is a composite loan that involves term loans and working capital loans.


  • Purpose of loan - For setting up a new business in trading, services, and manufacturing sectors by SC, ST, and Women entrepreneurs.


  • Size of the loan - 75% of the composite loan of the project cost including working capital and term loan.


  • Rate of interest - The interest rate of the Stand-up India scheme would be the lowest that is provided by the banks for the particular category.


  • Security - The loan might be secured by collateral or CGFSIL guarantee (Credit Guarantee Fund Scheme for Stand-up India Loans), as needed by the banks.


  • Repayment of the loan - The flexible repayment tenure for this scheme is up to 7 years with a moratorium period of 18 months.


  • Working capital – The limit of working capital is to be sanctioned by cash credit limit, although working capital up to Rs. 10 lakhs can be sanctioned by overdraft facility.


Stand-up India loan schemes 
Interest rate  Bank's MCLR + 3% + Tenure premium 
Age criteria  Above 18 years for SC, ST, and women entrepreneur 
Loan amount From Rs. 1 lakh to Rs. 1 crore 
Flexible repayment tenure  Up to 7 years 
Loan provided to Greenfield projects 
Margin  Maximum 15% 
Shareholding stake 51% for Non individuals 
Working capital limit Up to Rs. 10 lakhs in cash credit limit 
Financial repayment tenure of the borrower  Must not be defaulted in the past 


Parameters that might impact the availability of this scheme 

  • The promoter’s category not falling under SC/ST or women entrepreneurs
  • Lack of experience of the individual in handling such business
  • Insufficient margin money to boost business
  • Residence of the borrower and area of the business
  • Project plan which is not drafted up to the mark.
  • The amount of self-investment by the borrower in the business venture.


Stand-up India Scheme Details 

Rate of interest @8% onwards 
Loan amount  Up to Rs. 1 Crore 
Flexible repayment tenure  Up to 7 years 
Processing fee  From 0.5% to 3.00% 


List of Bank’s offering Stand-up India 

Axis Bank Indian Bank 
Bank of India Indian Overseas Bank 
Bank of Baroda Jammu & Kashmir Bank 
Bank of Maharashtra Punjab & Sind Bank 
Central Bank of India PNB Bank 
Canara Bank State Bank of India 
ICICI Bank UCO Bank 
IDBI Bank Union Bank of India 


Eligibility criteria for Stand-up India scheme 

  • The minimum age for SC, ST, or Women entrepreneurs is 18 years or above.
  • The borrower must be in the category of SC, ST, or women entrepreneur.
  • The loan can be availed by only greenfield projects.
  • The borrower should not be a defaulter to any banks or financial bodies in the past.


Entrepreneurial support for SC, ST community, and women (2021 – 2022) 

Total applications  154251 
Sanctioned applications  135038 
Total amount Rs. 36479.88 Crores 
Sanctioned amount Rs. 30389.43 Crores 
Lenders On-boarded 80 
Handholding Agencies 24750 
HHA Requests 2957 
Branches connected 135513 



Documents required for Stand-up India loan application 

1.Duly filled out the application form with passport-sized photographs 

2.Copy of PAN Card 

3. For address proof  

  • Passport
  • PAN Card
  • Voter ID Card
  • Aadhar Card
  • Electricity bill
  • Utility bill


4. For identity proof 

  • Aadhar card
  • Voter ID Card
  • Passport
  • PAN Card
  • Driving license


5. For Income proof 

  • Income Tax Return (ITR) with computation of income (if filed) for the last 3 years form – 16.
  • Previous 1-year bank statement of salary account.
  • Appointment letter and previous 3 months' salary slips.
  • Balance sheet
  • Profit and loss account
  • Tax audit report
  • Annexure
  • Updated 6 months statements of saving accounts


6. Other mandatory documents 

  • Loan scheduled and sanction letter
  • Copy of GST return for the previous year


Steps to apply for Stand-up India Loan Scheme 

Step-1: - To avail stand-up India loan scheme, visit the official website. 

Step-2: - Enter the required details of the business location. 

Step-3: - Choose the category between woman, ST, or ST. 

Step-3: - Select the nature of the scheduled business. 

Step-4: - Thereafter, select the loan amount of the business and information of the premises. 

Step-5: - You will be required to mention your past business experience along with tenure. 

Step-6: - Enter all the personal and business details including the name of the enterprise and the constitution. 

Step-7: - At last, click on the register button to completer the process of the Stand-up India loan scheme. 

Also read: - Startup Business loan for Women entrepreneurs 

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