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Stand-Up India: ₹10L to ₹1Cr Loans for SC/ST and Women Entrepreneurs

Stand-Up India is a Government of India scheme that ensures at least one SC/ST borrower and one woman borrower per bank branch gets a loan between ₹10 lakh and ₹1 crore to start a new (greenfield) enterprise. Unlike Mudra, this is a composite loan — it covers both your capital investment and working capital in a single sanction.

Scheme at a Glance

Loan Range

₹10L – ₹1Cr

Composite loan covering term loan (capital) and working capital in a single sanction. The bank calculates the split based on your project report.

Who It Is For

SC/ST + Women

SC/ST borrowers of any gender, and women borrowers of any caste or category. Both tracks are independent — each bank branch must serve at least one from each group.

Repayment

Up to 7 years

Maximum repayment tenure of 7 years with an initial moratorium of up to 18 months. The bank sets the exact schedule based on your projected cash flows.

Eligibility Criteria

Who can apply

SC/ST individuals (any gender) OR women borrowers (any caste or category). Both may apply — they are independent tracks. The bank is mandated to cover at least one borrower from each group per branch.

Enterprise type

Greenfield enterprise only — meaning a new business that the borrower is starting for the first time in that sector. An existing business owner expanding is not eligible unless the new unit is in a different sector.

Sector

Manufacturing, services, or trading. Excludes agriculture and allied activities (those are covered by other schemes). Food processing, beauty services, logistics, retail, and light manufacturing all qualify.

Age

18 years and above. No upper age limit specified.

Credit history

The borrower should not be in default with any bank or financial institution. A clean CIBIL record is necessary. First-time borrowers with no credit history can still apply — the guarantee structure accommodates them.

Margin money

You must contribute at least 10% of the total project cost from your own funds. The remaining 5% (completing the 15% minimum margin) can come from state-level subsidies or other schemes. The bank funds up to 85%.

Documents Required

All applicants

  • • Aadhaar card and PAN card
  • • 2 passport-size photos
  • • Bank account passbook (last 6 months)
  • • Proof of business address (rent agreement or utility bill)
  • • Project report (business plan, 3–5 pages minimum)
  • • Proof of margin money (savings account statement showing your 10% contribution)

Additional by category

  • • SC/ST applicants: caste certificate from competent authority
  • • Women applicants: no additional certificate needed — Aadhaar is sufficient
  • • If company/LLP: Certificate of Incorporation, MOA/AOA, board resolution
  • • Equipment quotations from suppliers (for term loan portion)
  • • Lease agreement for business premises (if applicable)

How to Apply — Step by Step

  1. 1

    Prepare a project report

    Write a 3–5 page project report covering: what business you are starting, why you chose this sector, how much you need and what you will spend it on (equipment, interiors, working capital), projected revenue for 3 years, and how you will repay. This is the most important document — do not skip it.

  2. 2

    Arrange your margin money

    You need to show 10% of the total project cost in your savings account before the bank will sanction. If your project costs ₹25L, you need ₹2.5L already saved. Build this before approaching the bank.

  3. 3

    Apply via standupmitra.in or at a branch

    Go to standupmitra.in to apply online — the portal matches you to a bank and branch. Alternatively, walk into any scheduled commercial bank branch and ask specifically for a Stand-Up India loan. Mention the scheme by name — some branch staff may not proactively offer it.

  4. 4

    Submit application and documents

    The bank will provide you the application form. Fill it out, attach all documents (originals + two self-attested photocopies of each), and get an acknowledgement receipt with a reference number. Keep this.

  5. 5

    Bank appraisal and site visit

    A loan officer will review your project report and may visit your proposed business site. They assess the viability of your plan, not just your credit score. A realistic, well-documented project report carries more weight here than in a standard loan application.

  6. 6

    Sanction and disbursement

    On approval, you receive a sanction letter. Term loan funds are disbursed directly to equipment suppliers or to your account in tranches. Working capital is typically issued as a Cash Credit (CC) limit or overdraft. Repayment begins after the moratorium period (up to 18 months).

Why Applications Get Rejected

Not a greenfield business

If you already own a business in the same sector, the application will be rejected. Start a business in a new sector, or apply under a different scheme such as Mudra for expansion of your existing unit.

Insufficient margin money

If you cannot show 10% of the project cost in your own savings, the bank cannot sanction. Save this amount first before applying — there is no shortcut here.

Weak project report

A vague or copy-pasted project report is the most common reason for rejection. Get help from your nearest MSME District Industry Centre (DIC) — they offer free project report assistance.

Loan default history

Any NPA or settlement on your CIBIL record is a block. Clear dues and obtain a no-dues certificate before applying.

Project cost below ₹10L

Stand-Up India has a minimum loan of ₹10 lakh. Smaller requirements are better served by Mudra (up to ₹10L, no minimum). Do not force-fit your project into Stand-Up India if Mudra covers it.

Stand-Up India vs Mudra — Which Should You Use?

Choose Stand-Up India if:

  • • You are SC/ST or a woman entrepreneur
  • • Starting a brand new business (greenfield)
  • • You need between ₹10L and ₹1Cr
  • • You can arrange 10% margin from own savings

Choose Mudra if:

  • • You need less than ₹10L
  • • Your business is already running and you need expansion funds
  • • You cannot arrange margin money upfront
  • • You are from the general category (no SC/ST or women restriction)

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Frequently Asked Questions

Can a woman from the general category apply for Stand-Up India?

Yes. The scheme has two independent eligibility tracks: one for SC/ST borrowers (any gender) and one for women borrowers (any caste or category). A general-category woman is fully eligible.

Is Stand-Up India only for manufacturing businesses?

No. The scheme covers manufacturing, services, and trading sector enterprises. Any greenfield business — a beauty salon, logistics company, food processing unit, or retail store — is eligible as long as it is a new venture.

What is a greenfield enterprise and does my existing business qualify?

A greenfield enterprise means you are starting a brand new business for the first time in that sector. If you already own a business in the same sector, your new unit may not qualify. However, if you are an SC/ST or woman borrower starting your first-ever business, you are clearly within the greenfield definition.

What is the 10% margin money requirement?

Stand-Up India will fund up to 85% of the total project cost. The remaining 15% must come from other sources: at least 10% from you (your own savings) and up to 5% from a government subsidy, if applicable. The bank will not sanction the loan unless the margin is confirmed.

Can I apply at any bank or only at scheduled commercial banks?

Stand-Up India operates through all scheduled commercial banks. You can walk into any branch of SBI, PNB, Bank of Baroda, Canara Bank, or any private bank. You can also apply online at standupmitra.in, which routes your application to the nearest participating branch.

What if my Stand-Up India loan application gets rejected?

Banks are mandated to ensure at least one SC/ST and one woman borrower per branch under Stand-Up India. If rejected, escalate to the bank's MSME regional office or file a complaint at the standupmitra.in portal. You can also approach the district lead bank or SIDBI office for assistance.

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