Stand Up India Scheme
The Stand Up India Scheme is a flagship initiative by the Government of India aimed at promoting entrepreneurship among women and marginalized communities, specifically the Scheduled Castes (SC) and Scheduled Tribes (ST). Launched in April 2016, the scheme plays a vital role in providing financial assistance, mentorship, and guidance to first-time entrepreneurs from these categories to help them establish their businesses and achieve economic self-reliance.
In this blog, we’ll explore the objectives, benefits, eligibility, and application process of the Stand Up India Scheme, along with key insights on how it is driving inclusive growth in the Indian economy.
The Stand Up India Scheme aims to promote entrepreneurship by providing loans between ?10 lakh to ?1 crore to SC/ST individuals and women entrepreneurs. The loan can be used to establish greenfield enterprises in the manufacturing, services, or trading sectors, helping aspiring business owners overcome financial barriers and start their entrepreneurial journey.
The scheme addresses two major challenges faced by marginalized entrepreneurs:
By providing collateral-free loans and a structured mentorship program, the scheme ensures that businesses have the necessary financial and non-financial support to succeed.
| Feature | Details |
| Loan Amount | ?10 lakh to ?1 crore |
| Purpose | To establish greenfield enterprises |
| Beneficiaries | SC/ST individuals and women entrepreneurs |
| Sectors Covered | Manufacturing, Services, and Trading |
| Repayment Period | Up to 7 years with a moratorium period of 18 months |
| Collateral Requirement | Collateral-free loans under CGTMSE guarantee |
The primary objectives of the Stand Up India Scheme are:
Promote inclusive entrepreneurship among SC/ST and women.
Provide financial assistance to marginalized communities.
Encourage job creation through new businesses.
Address socio-economic inequalities by empowering disadvantaged groups.
Foster innovation and growth in the Indian economy.
To apply for the Stand Up India Scheme, the applicant must meet the following criteria:
The applicant must be a woman entrepreneur or belong to the SC/ST category.
The business must be a greenfield enterprise, meaning it should be a first-time business venture in the manufacturing, services, or trading sectors.
The applicant must be above 18 years of age.
The business should be a private limited company, LLP, or partnership firm.
Note: In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur.
The Stand Up India Scheme offers several benefits that help first-time entrepreneurs overcome financial and operational barriers:
1. Financial Assistance
The scheme provides loans between ?10 lakh to ?1 crore, helping entrepreneurs cover their capital and working capital requirements.
2. Collateral-Free Loans
The loans are guaranteed by the Credit Guarantee Fund Scheme for Stand Up India (CGFSI), ensuring that entrepreneurs can access credit without providing any collateral.
3. Handholding Support
Entrepreneurs receive handholding support in the form of:
Project report preparation
Skill development programs
Mentorship
Legal and financial advisory
4. Flexible Repayment Terms
The loan comes with flexible repayment options, with a tenure of up to 7 years and a moratorium period of up to 18 months.
Entrepreneurs can apply for the Stand Up India Scheme through the following channels:
1. Online Application
You can apply online through the official Stand Up India Portal
2. Direct Application through Banks
Visit any scheduled commercial bank to apply for the scheme. Most banks have dedicated officers to assist SC/ST and women entrepreneurs with their loan applications.
3. Common Service Centers (CSCs)
Applicants can also approach Common Service Centers (CSCs) for assistance with their loan applications.
Here’s a list of essential documents required to apply for the loan:
Identity Proof – Aadhaar Card, PAN Card
Address Proof – Voter ID, Passport, Utility Bill
Caste Certificate (for SC/ST applicants)
Business Plan or Project Report
Bank Statements
Registration Documents (for companies or LLPs)
Sectors Covered Under the Stand Up India Scheme
Manufacturing Sector
Setting up factories
Producing goods or machinery
Services Sector
IT services
Food services
Tourism and hospitality
Trading Sector
Retail businesses
Wholesale businesses
| Parameter | Details |
| Loan Tenure | Up to 7 years |
| Moratorium Period | Up to 18 months |
| Interest Rate | Based on MCLR + bank’s |
Q1. Who can apply for the Stand Up India Scheme?
Individuals belonging to SC/ST communities and women entrepreneurs can apply for the scheme.
Q2. Is collateral required for the loan?
No, the loans are collateral-free, covered under the Credit Guarantee Fund Scheme.
Q3. Can existing businesses apply for the loan?
No, the loan is only for greenfield enterprises (new ventures).
Q4. How much loan can be availed?
Loans ranging from ?10 lakh to ?1 crore can be availed under the scheme.
Q5. What is the repayment period?
The repayment period is up to 7 years, with a moratorium period of 18 months.
The Stand Up India Scheme is a transformational initiative that aims to create a level playing field for SC/ST and women entrepreneurs. By providing financial assistance, mentorship, and support, the scheme fosters economic empowerment and encourages first-time business owners to pursue their entrepreneurial dreams.
Written by:
CA Vikas Jain
CA Vikas Jain - Our Mentor
9863-02-02-02