Stand-Up India Scheme

The Stand-up India initiative promotes entrepreneurship among women, scheduled castes, and tribes. The scheme is supported by the Ministry of Finance’s Department of Financial Services (DFS).

The Stand-Up India Scheme provides bank loans ranging from Rs 10 lakh to Rs One Crore to one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and a single woman borrower for every bank branch for the establishment of a successful greenfield firm. This business could be in manufacturing, services, or trading. 

In non-individual firms, at least 51 percent of the shareholding and controlling stake must be held by an SC or ST or female entrepreneur. All branches of India’s scheduled commercial banks will operate the Stand-up India scheme. This scheme’s primary goal is to give money to businesses in the service, manufacturing, and trading sectors.

Objectives of the Stand-Up India Scheme

The Stand-Up India scheme aims to provide bank loans ranging from 10 lakh to 1 Crore to one SC or ST borrower and at least one woman borrower every branch to establish a greenfield firm. This business could be in manufacturing, services, or trading. In non-individual firms, at least 51 % of the shareholding and controlling stake must be held by an SC or ST or female entrepreneur.

Components of the Stand-up India Scheme

• A composite loan (which incorporates a term loan and working capital) is available in amounts ranging from Rs. 10 lakhs to Rs. 1 crore.
• The preferred bank sets the applicable interest rate for that category, which exceeds MCLR+3 percent+Tenor Premium.
• Loans are exclusively available for Green Field Projects, first-time ventures into the manufacturing or trading industries.
• The applicant must not have previously defaulted on any bank or NBFC loan.
• For SC or ST and female candidates, the minimum age to apply for a loan under the Stand-up scheme is 18 years.
• The payback period is 7 years, with a moratorium period of 18 months.
• The Stand-up India Scheme provides no financial assistance.
• Loans may be secured by collateral or security or a Credit Guarantee Fund Scheme guarantee, as determined by the bank.
• Loans can only be used by SC or ST and female entrepreneurs to start new businesses in the trading, service, and manufacturing sectors.

Eligibility for the Stand-Up India Scheme         

1. SC or ST and/or female entrepreneurs over the age of 18.
2. In non-individual firms, either SC or ST or a woman entrepreneur must possess 51 % of the shareholding and controlling interest.
3. Loans under the scheme are exclusively available for greenfield projects. In this sense, the green field refers to the beneficiary’s initial foray into the manufacturing, services, or trading sectors.
4. The borrower should not be in arrears with any bank or financial institution.

Loan Application Documents

• Identity Proof
• The applicant cannot be a defaulter in any bank or financial institution—the company’s or partnership’s memorandum and articles of an association Partnership agreement, etc.
• Proof of address: Rent agreement (if business premises are rented) Promoters’ and guarantors’ assets and liabilities statements, as well as their most recent income tax returns.
• Balance sheets are projected for the next two years in the case of working capital constraints and the loan period for a term loan.
• Photocopies of all leases or title deeds for all properties presented as primary and collateral securities.
• Project report, Certificate of incorporation from ROC to determine whether a person belonging to the SC or ST or Woman category owns the majority stake in the company.
• Balance sheets of the Associate or Group Companies for the previous three years (if any).

How to apply for a loan from the Stand-Up India Scheme

To apply for loans through Stand-Up India, candidates must go to their nearest bank branch and inquire if a one-person quota for SC or STs or one woman entrepreneur per bank branch is available. If so, they can apply for a loan under the Stand-up India scheme by filling in the application form and furnishing it together with the relevant papers. Download the application form from the official stand-Up India webpage.

Steps to Register for a Loan from Stand-Up India Scheme

Step 1: Navigate to the official website that is solely dedicated to the Stand-up India Scheme.

Step 2: Complete the registration form by first providing the business address, as well as the state, village, district, town, city, and pin code.

Step 3: Determine whether the promoter is a woman who owns 51 percent or more of the company and whether the promoter belongs to the SC/ST group.

Step 4: The applicant can next choose the type of business they want to start, the loan amount they want, the nature and description of their business activity, the status of their business space, and the drop-down menu for first-time entrepreneurs.

Step 5: They must also describe their previous business experience, including commercial activity, years of experience, and the kind of the business.

Step 6: Select the desired handholding support based on your needs and interests.

Step 7: The applicant’s personal information, including their names, business name, user name, phone number, email address, and kind of constitution, is the last and final registration step.

Step 8: Applicants can apply for the Stand-up India scheme with the particular financial institution by clicking on register, and their personnel will contact them for further requirements.

Additional information on the loan

The type of loan is a composite loan (which includes a term loan and working capital) ranging from tens of thousands of dollars to one hundred thousand dollars.

Interest Rate: The interest rate would be the bank’s lowest applicable rate for that category (rating category), not to exceed (MCLR + 3% + tenor premium).

Repayment: The loan is repayable in 7 years, with an 18-month maximum moratorium term.

Security: In addition to primary security, banks may choose to protect the loan with collateral or a guarantee from the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).

Loan Amount: A composite loan covering 75% of the project’s cost, including a term loan and working capital. The requirement that the loan cover 75 percent of the project cost does not apply if the borrower’s contribution, combined with any other schemes’ convergence support, exceeds 25 percent of the project cost.

Working Capital: A working capital draw of up to ten lakh rupees may be approved through an overdraft. A working capital limit of more than ten lakh rupees will be granted as a Cash Credit limit.

Frequently Asked Questions