Government Scheme · Entrepreneurship · Women · SC · ST
Stand-Up India Scheme
A Government of India initiative designed to promote entrepreneurship and improve access to institutional credit for women and SC/ST entrepreneurs establishing greenfield enterprises.
Important Current Update
Original Stand-Up India Scheme Status
The Department of Financial Services notes that the original Stand-Up India Scheme was approved up to 31 March 2025.
In Union Budget 2025–26, the Government announced a proposed new scheme for first-time women, SC and ST entrepreneurs, with term loans of up to ₹2 crore over the next five years. The proposal was described as being developed using lessons from Stand-Up India.
Applicants should verify the latest Government announcements and bank availability before making financial decisions.
Age
18 years or above
Original Loan
₹10 lakh – ₹1 crore
Enterprise
Greenfield business
Repayment
Up to 7 years
Target Group
Women, SC & ST
Government Scheme · Entrepreneurship · Women · SC · ST
Stand-Up India Scheme
A Government of India initiative designed to promote entrepreneurship and improve access to institutional credit for women and SC/ST entrepreneurs establishing greenfield enterprises.
Objectives
What Was the Scheme Designed to Achieve?
Promote Entrepreneurship
Encourage entrepreneurship among Scheduled Castes, Scheduled Tribes and women entrepreneurs.
Improve Credit Access
Improve access to institutional finance for eligible first-time entrepreneurs.
Support New Enterprises
Facilitate the establishment of greenfield enterprises in eligible sectors.
Build Business Capacity
Support entrepreneurs through handholding, mentoring and entrepreneurship development.
Eligibility
Who Was Eligible Under the Original Framework?
Women Entrepreneurs
Eligible women entrepreneurs aged 18 years or above could apply under the original framework.
SC / ST Entrepreneurs
Scheduled Caste and Scheduled Tribe entrepreneurs could access the scheme subject to eligibility.
Greenfield Enterprise
The proposed business must generally be the applicant's first venture in the eligible sector.
Good Banking Record
The applicant should generally not be in default with any bank or financial institution.
For a non-individual enterprise such as a company, partnership or LLP, at least 51% of the shareholding and controlling stake was required to be held by eligible SC/ST and/or women entrepreneurs.
Original Loan Structure
Loan Amount & Components
Under the original Stand-Up India framework, eligible entrepreneurs could access a composite loan from ₹10 lakh to ₹1 crore.
Term Loan
Used for capital expenditure, machinery, equipment, business assets and other eligible investment requirements.
Working Capital
Supports operational requirements and day-to-day business working-capital needs.
The loan was generally structured to cover up to 85% of project cost, subject to the applicable beneficiary contribution and convergence support from eligible Central or State Government schemes.
Contribution
Beneficiary Contribution & Margin Money
Minimum Own Contribution
10%
The borrower was generally required to contribute at least 10% of project cost from their own resources.
Margin Money Support
Up to 15%
Margin money could be supported through convergence with eligible Central or State Government schemes.
The actual financing structure depends on the applicable scheme conditions, project cost, beneficiary contribution and bank appraisal.
Eligible Sectors
What Businesses Could Be Covered?
Manufacturing
Eligible manufacturing enterprises.
Services
Eligible service-sector enterprises.
Trading
Eligible trading activities.
Agriculture Allied
Eligible activities allied to agriculture.
Agriculture Allied
Eligible Agriculture-Allied Activities
Eligible agriculture-allied activities could include:
Regular crop loans and certain land-improvement activities were outside the intended scope of coverage.
Loan Terms
Interest Rate & Repayment
Interest Rate
The rate was determined according to the applicable lending terms of the participating bank and the borrower's risk profile.
Obtain the current rate and charges directly from the bank.
Repayment Period
Up to 7 Years
Could include a maximum moratorium period of up to 18 months, depending on the project and bank terms.
Security
Collateral & Credit Guarantee
Collateral or security requirements may depend on the lending bank's policies and applicable credit guarantee arrangements.
Credit Guarantee Fund for Stand-Up India
The Government provided a credit guarantee mechanism through the Credit Guarantee Fund for Stand-Up India (CGFSI) under the relevant framework.
A credit guarantee mechanism does not automatically mean every loan is completely collateral-free. Applicants should confirm security requirements with the concerned bank.
Entrepreneur Support
Handholding & Financial Support
The Stand-Up India ecosystem provided handholding support to prospective entrepreneurs in addition to bank finance.
Official Support Platform
Stand-Up Mitra Portal
The platform was designed to facilitate handholding and support for prospective entrepreneurs.
Lending Channel
Participating Banks & Financial Support
The scheme was implemented primarily through Scheduled Commercial Banks (SCBs).
Bank Finance
Loan sanction, pricing, security and repayment terms were subject to the participating bank's appraisal and applicable scheme conditions.
Applicants should verify current availability directly with participating banks and official Government sources.
Application Process
How to Apply
Subject to the current availability and implementation of the scheme or any successor programme, the general process involves:
Identify Business
Identify an eligible greenfield business opportunity in a permitted sector.
Prepare Project
Prepare a detailed business or project report with estimated project costs.
Check Eligibility
Confirm eligibility under the applicable scheme or successor programme.
Calculate Contribution
Determine the required project contribution and overall financing requirement.
Approach Bank
Approach a participating Scheduled Commercial Bank or applicable lending channel.
Submit Documents
Provide identity, category, business, financial and project-related documents.
Credit Appraisal
Complete the bank's credit assessment, verification and other formalities.
Sanction & Disbursement
Receive sanction and disbursement subject to bank approval and scheme conditions.
Documentation
Documents Generally Required
Exact documentation can vary depending on the bank, applicant, enterprise structure and project.
Before Applying
Important Points to Consider
- Greenfield Requirement: Ensure that the proposed business qualifies as a greenfield enterprise.
- Project Viability: Prepare a realistic and financially viable project report.
- Promoter Contribution: Maintain the required contribution from your own resources.
- Compare Loan Terms: Check the latest interest rate, processing charges, security requirements and repayment terms.
- Activity Eligibility: Confirm that the proposed business activity is covered under the applicable framework.
- Current Scheme Status: Verify whether the original Stand-Up India framework or its successor programme is currently available.
Budget 2025–26
Proposed Successor Initiative
The Union Budget 2025–26 announced a proposed new initiative targeting 5 lakh first-time women, SC and ST entrepreneurs over five years, with term loans of up to ₹2 crore.
5 Lakh
Proposed entrepreneurs
₹2 Cr
Proposed maximum term loan
5 Years
Proposed period
The proposed initiative was intended to build on the experience and lessons from Stand-Up India. Applicants should rely on the latest official Government and bank notifications because the detailed implementation framework may change.
Conclusion
The Role of Stand-Up India
The Stand-Up India Scheme played an important role in improving access to institutional finance for women, SC and ST entrepreneurs, particularly for establishing new greenfield enterprises.
Its key features included loans from ₹10 lakh to ₹1 crore, support for manufacturing, services, trading and eligible agriculture-allied activities, together with handholding and credit-support mechanisms.
Going forward, entrepreneurs should monitor official announcements regarding the proposed successor initiative announced in Union Budget 2025–26, which envisages higher-value term loans of up to ₹2 crore for eligible first-time entrepreneurs.
Always verify the current scheme status, eligibility, interest rates, security requirements and application process through official Government sources or the concerned bank before applying.
Disclaimer
The original Stand-Up India Scheme was approved up to 31 March 2025. Scheme availability, successor programmes, eligibility, interest rates, loan limits, security requirements and other terms may change. The information above distinguishes the original framework from the proposed successor initiative announced in Budget 2025–26. Applicants should verify the latest details through the Department of Financial Services, official Government portals and participating banks before making financial decisions.
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