Stand-Up India Scheme: Eligibility, How to Apply?

Stand-Up India Scheme is a flagship initiative by the Government of India designed to promote entrepreneurship among SC ST women entrepreneurs. By providing access to startup loans, the scheme enables underserved communities to establish greenfield enterprises in manufacturing, services, and trading sectors. With a focus on financial inclusion and MSME development, Stand-Up India ensures that talented individuals can overcome economic barriers and contribute to India’s growing entrepreneurial ecosystem.

Stand-Up India Scheme 

Stand-Up India initiative was introduced to leverage the institutional credit structure to reach out to the underserved sectors of the population. It mandates every bank branch to extend a bank loan for business to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower for setting up a greenfield enterprise.

Stand-Up India Eligibility Criteria

To avail of the Stand Up India loan scheme, applicants must meet specific Stand Up India eligibility requirements:

• Borrower Category: The borrower must be an SC/ST and/or a woman entrepreneur.

• Age: The applicant must be above 18 years of age.

• Greenfield Project: Loans are only available for greenfield projects, meaning the first-time venture of the beneficiary in the manufacturing, services, or trading sector.

• Non-Individual Enterprises: In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by either an SC/ST or a woman entrepreneur.

• Credit History: The borrower should not be in default to any bank or financial institution.

Benefits of Stand-Up India Loan Scheme

The scheme provides a comprehensive support system for entrepreneurship development:

• Loan Amount: Composite loans (inclusive of term loan and working capital) between ₹10 lakh and ₹100 lakh.

• Purpose of Loan: For setting up a new enterprise in manufacturing, trading, or the service sector by SC/ST/women entrepreneurs.

• Interest Rate: The interest rate will be the lowest applicable rate of the bank for that category (not to exceed base rate (MCLR) + 3% + tenure premium).

• Security: Besides primary security, the loan may be secured by collateral security or a guarantee of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), as decided by the banks.

• Repayment: The loan is repayable in 7 years with a maximum moratorium period of 18 months.

How to Apply for Stand-Up India?

The application process for this MSME funding scheme is streamlined through three potential channels:

1. Directly at the Bank Branch: Applicants can visit any bank branch to start the process.

2. Stand-Up India Portal: Applications can be submitted online via the official portal (www.standupmitra.in).

3. Lead District Manager (LDM): Through the LDM office for guidance and facilitation.

Documents Required for Stand-Up India Loan

To ensure a smooth application for a bank loan for business, keep the following documents ready:

• Identity Proof (Aadhaar Card, PAN Card, Voter ID, etc.).

• Address Proof (Utility bills, Ration card, etc.).

• Business Address Proof.

• Caste Certificate (for SC/ST category).

• Project Report for the proposed greenfield enterprise.

• Bank statements for the last six months.