Stand-Up India Scheme ₹10 Lakh to ₹1 Crore Loan for SC/ST and Women Entrepreneurs
Every scheduled commercial bank branch in India must give at least one SC/ST entrepreneur and one woman entrepreneur a Stand-Up India loan. Claim what is yours.
₹1 Crore
Maximum loan per borrower
₹10 Lakh
Minimum loan amount
25%
Maximum margin money required
1 Branch
Must sanction at least 1 SC/ST + 1 woman loan
🚀
Bank Branches Are Mandated by RBI — They Cannot Refuse Without Justification The RBI has directed every scheduled commercial bank branch to extend at least one Stand-Up India loan to an SC/ST entrepreneur and one to a woman entrepreneur. If a branch refuses to process your application without giving a written reason, it violates the scheme guidelines. You can escalate to SIDBI's CGFSIL or the Banking Ombudsman.
📖 Overview
What Is Stand-Up India — And Why It Was Created
Stand-Up India was launched on April 5, 2016, with a specific mandate: facilitate bank loans to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. Greenfield means a new business — not an existing one seeking expansion (though some exceptions apply).
The scheme addresses a structural problem in Indian banking: SC/ST and women entrepreneurs historically face significantly higher loan rejection rates and are pushed toward moneylenders. Stand-Up India forces accountability at the branch level — each branch has a target and banks are monitored by SIDBI on progress.
The loan is a composite loan covering both working capital and term loan components — meaning you get one loan covering the full cost: machinery, equipment, infrastructure, and initial working capital for operations. The maximum is ₹1 crore (per enterprise) and the minimum is ₹10 lakh.
💡 Stand-Up India vs PM Mudra — Key DifferenceMudra covers existing small businesses needing up to ₹10 lakh. Stand-Up India starts where Mudra ends — it covers ₹10 lakh to ₹1 crore for new greenfield enterprises by SC/ST and women. If you are an SC/ST or woman planning a new mid-size business (manufacturing unit, large service enterprise), Stand-Up India is the more powerful tool.
✅ Eligibility
Who Can Apply for Stand-Up India — Complete Criteria
SC, ST, or woman entrepreneur (any category) above 18 years
Loan is for a greenfield enterprise — new business in manufacturing, services, or trading sector
In case of a non-individual entity (partnership, LLP, private company), 51% shareholding and controlling stake must be with SC/ST or woman entrepreneur
Borrower should not be a defaulter to any bank or financial institution
Project must be viable — bank will assess business feasibility
Loan Structure
Loan amount: ₹10 lakh to ₹1 crore covering 75% of project cost (you bring 25% as margin/equity)
Repayment: Maximum 7 years with up to 18-month moratorium (grace period before repayment starts)
Collateral: Loans are covered under CGFSIL (Credit Guarantee Fund Scheme for Stand-Up India Loans) — this reduces collateral burden, but banks may still ask for primary security
Interest rate: Lowest applicable rate for the category — should not exceed base rate + 3% + tenor premium
🏦 How to Apply
Step-by-Step Application — Online via StandUpMitra
1
Assess Business ReadinessPrepare a basic business plan: what you will produce/sell, estimated project cost, how much is machinery vs working capital, projected monthly revenue. Banks evaluate feasibility — vague plans get rejected.
2
Register on StandUpMitra PortalVisit standupmitra.in — SIDBI's handholding platform for Stand-Up India. Register, fill your borrower profile, and get connected to potential lending banks in your district.
3
Choose Between Self-Application and HandholdingStandUpMitra offers "In-Hand Support" — trained facilitators (from NABARD, NSIC, District Industries Centre) help you prepare documentation and accompany you to the bank. This support is free and significantly increases approval chances for first-time borrowers.
4
Submit to Bank with DocumentsKey documents: Aadhaar + PAN, caste/gender certificate, business plan, project cost estimates with quotations for machinery, bank statements (6 months), educational/skill certificates if applicable.
5
Bank Appraisal and SanctionBank visits your proposed business location, assesses viability, and sanctions within 30–90 days. After sanction, a dedicated Stand-Up India savings account is opened for the enterprise.
❓ FAQ
Frequently Asked Questions — Verified 2025
Yes. Stand-Up India covers manufacturing, services, and trading sectors. A retail store, wholesale distribution business, or trading firm are all eligible. The key condition is that it must be a new (greenfield) enterprise — not expansion of an existing established business.
Yes, if you meet eligibility criteria for both. They are different schemes for different scales — Mudra for small businesses up to ₹10 lakh, Stand-Up India for new enterprises of ₹10 lakh to ₹1 crore. If your Mudra loan was for an existing small business and you now want to start a new, larger enterprise, Stand-Up India is appropriate for the new venture.
Request the specific written reasons for rejection. If you believe the assessment was unfair, register on StandUpMitra and request facilitation support — SIDBI's handholding agencies can review your project, strengthen the plan, and approach the bank again. You can also try a different bank branch — the mandate applies to all scheduled commercial banks. Escalation can be done via SIDBI's Stand-Up India helpline: 1800-180-1111.
Apply for This Scheme Today
Visit the official government portal. Completely free — no payment to any agent or middleman at any step.
Disclaimer: MeraHaq is an independent citizen information platform. Not affiliated with any government department. All information sourced from official .gov.in portals. Last verified: January 2025.