Stand-Up India: Loans of ₹10 Lakh to ₹1 Crore for Women & SC/ST Entrepreneurs
The Stand-Up India scheme was launched in 2016 with a single, specific goal: make sure that at least one woman and one SC/ST borrower in every bank branch gets a loan to start a new enterprise. The loan ranges from ₹10 lakh to ₹1 crore, covers manufacturing, services and trading businesses, and is backed by a credit guarantee — so you do not need heavy collateral of your own.
If you are a woman or belong to a Scheduled Caste or Scheduled Tribe and want to set up a greenfield (brand-new) enterprise, this guide walks you through every detail — eligibility, loan terms, documents, how to apply, and how to avoid the most common reasons for rejection.
What is Stand-Up India
Stand-Up India is a Government of India scheme administered through SIDBI (Small Industries Development Bank of India) and implemented by all Scheduled Commercial Banks. Every bank branch is mandated to sanction at least two Stand-Up India loans: one to a woman borrower and one to an SC/ST borrower. The scheme was originally set to run until 2025, but the government has extended it to 2025 and beyond, so it remains active.
The loans are composite — they cover both the term-loan component (machinery, equipment, construction) and the working-capital component (raw materials, stock, operating expenses) in a single sanction. This means you do not have to apply separately for working capital.
Who can apply
You are eligible if all of the following are true:
- You are 18 years of age or older.
- You are a woman (of any caste/community) or belong to a Scheduled Caste (SC) or Scheduled Tribe (ST).
- You are setting up a greenfield enterprise — meaning a first-time venture in manufacturing, services or trading. Expansion of an existing unit does not qualify.
- You have not defaulted on any loan from a bank or financial institution (you must not be an existing NPA borrower).
- In the case of a non-individual enterprise (partnership or company), at least 51% of the shareholding and controlling stake must be held by the eligible woman or SC/ST entrepreneur.
There is no income ceiling, but in practice the scheme targets first-generation entrepreneurs who find it difficult to access institutional credit.
What the loan covers
The loan finances a greenfield project in any of these three sectors:
- Manufacturing — setting up a factory, workshop or production unit
- Services — starting a service-based business (clinic, salon, logistics, IT services, training centre, etc.)
- Trading — opening a wholesale or retail trading business
The composite loan covers:
- Land and building (if needed)
- Plant, machinery, equipment and furniture
- Working capital for the first cycle of operations
- Any other project-related costs
You can use the loan only for the new enterprise. Diverting funds for personal use or an unrelated business can lead to recall of the loan.
Loan amount and terms
| Parameter | Details |
|---|---|
| Loan range | ₹10 lakh to ₹1 crore (composite: term loan + working capital) |
| Promoter's contribution | The borrower must bring in at least 10% of the project cost as margin money |
| Repayment period | Up to 7 years |
| Moratorium | Up to 18 months (you start repaying only after this period) |
| Interest rate | Base rate / MCLR + a small spread, as per the lending bank — it is not fixed centrally, so compare banks |
| Collateral | Covered under the Credit Guarantee Fund Scheme for Stand-Up India (CGFSI) — the guarantee covers up to ₹1 crore, significantly reducing the collateral you need to provide from your side |
| Security | The asset created from the loan (machinery, equipment, etc.) is pledged as primary security |
The 18-month moratorium is especially important: it gives you time to set up the enterprise, start operations and begin earning before EMIs kick in.
How to apply, step by step
Step 1: Check your eligibility on the Stand-Up India portal
Visit standupmitra.in — the official portal. You can search for the nearest bank branch, check scheme details and register as a potential borrower. The portal also connects you with handholding agencies that can help prepare your project report.
Step 2: Prepare a project report
Banks will ask for a detailed project report (DPR) covering:
- Nature of the business and products/services
- Estimated project cost (land, machinery, working capital, etc.)
- Means of financing (how much from the loan, how much from your own funds)
- Projected revenue and repayment schedule
If you are not sure how to write one, the Stand-Up India portal lists Lead District Managers (LDMs) and SIDBI-supported handholding agencies in your district that offer free or low-cost help.
Step 3: Visit the bank branch
Go to any Scheduled Commercial Bank branch near you — preferably the one identified through the portal. Carry your documents and the project report. You can also apply through the bank's own loan application process; not everything has to go through standupmitra.in.
Step 4: Bank processes the application
The branch evaluates your project, checks documents and credit history, and processes the loan under its normal appraisal procedures. The credit guarantee from CGFSI means the bank's risk is lower, which helps your case.
Step 5: Sanction and disbursement
On approval, the bank issues a composite sanction letter covering both the term loan and working capital. Disbursement happens in stages — typically aligned with your project milestones (e.g., machinery purchase, construction progress).
Documents you will need
- Identity proof — Aadhaar, PAN, voter ID or passport
- Address proof — Aadhaar, utility bill, passport or ration card
- Caste certificate — for SC/ST applicants (issued by the competent revenue authority)
- Recent passport-size photographs
- Business address proof — rental agreement, ownership deed or NOC from the property owner
- Project report with cost estimates and revenue projections
- Quotations for machinery, equipment or construction (to support the project cost)
- Bank statements — last 6 to 12 months of your personal/existing business account
- Income tax returns (if available) and GST registration (if applicable)
- Partnership deed / incorporation certificate — if the enterprise is not a sole proprietorship
Why applications get rejected — and how to avoid it
- Not a greenfield enterprise — The scheme is strictly for new ventures. If you already run a manufacturing unit and want expansion capital, this scheme will not apply. Be clear that this is a first-time project.
- Shareholding below 51% — In a partnership or company, the SC/ST or woman entrepreneur must hold at least 51% of the controlling stake. Restructure ownership before applying if needed.
- Existing default or NPA status — Clear any overdue loans before applying. Banks will check your CIBIL / credit report.
- Weak or missing project report — A vague one-page note will not work. Show realistic costs, realistic revenue and a sensible repayment plan. Use district handholding agencies if you need help.
- Margin money not arranged — You must bring in at least 10% of the project cost from your own funds. If you cannot, look into state government schemes that provide margin-money subsidies for SC/ST or women entrepreneurs — several states offer these.
- Incomplete documentation — Missing caste certificate, missing address proof of business premises, or missing quotations are common. Check the bank's checklist before submitting.
Frequently asked questions
Can a woman from the general category apply? Yes. Any woman entrepreneur — regardless of caste — is eligible. The SC/ST criterion applies separately; women of all communities are covered under the "women" category.
Can I get a Stand-Up India loan if I already have a Mudra loan? Yes, as long as the Stand-Up India loan is for a new, greenfield enterprise and you are not a defaulter on any existing loan. The two schemes serve different purposes and can coexist.
Is there a subsidy component? No. Stand-Up India is a loan, not a grant or subsidy. However, the credit guarantee and the moratorium period make it easier to manage than a regular commercial loan.
What if my loan requirement is below ₹10 lakh? The minimum under Stand-Up India is ₹10 lakh. For smaller needs, consider the PM Mudra Yojana (up to ₹20 lakh, collateral-free) instead.
Can I apply to more than one bank? You can approach multiple branches, but you can take a Stand-Up India loan from only one branch. The portal helps match you with branches that still have unfilled mandates.
What is the credit guarantee, and does it mean no collateral at all? The CGFSI guarantee covers up to ₹1 crore, which substantially reduces the collateral the bank asks from you. However, the asset created from the loan (machinery, premises) will be pledged as primary security. You are unlikely to need additional personal collateral beyond the 10% margin money and the project asset.
Check what else you qualify for
Stand-Up India covers the big-ticket enterprise loan, but as a woman or SC/ST entrepreneur you may also be eligible for state-level subsidies, training programmes and additional credit schemes. Use our eligibility checker to see every central and state scheme that applies to your profile — it takes about a minute.
Scheme terms, loan limits and the credit guarantee structure can change over time. Always verify the latest details on the official portal — standupmitra.in — and confirm with your bank branch before submitting an application.