Published on May 27, 2025Updated on Jan 2, 2026
Since its launch in 2016, the Stand-Up India scheme has aimed to empower marginalised entrepreneurs across the country by providing them with access to funding and growth opportunities. The initiative specifically supports SC/ST and women, enabling them to pursue their business aspirations.
In this article, we’ll explore the Stand-Up India Yojana – including its purpose, eligibility criteria, features, and benefits.
The Stand-Up India scheme is a government initiative that helps SC/ST and women entrepreneurs avail loans of INR 10 lakhs to INR 1 crore for greenfield projects. Borrowers under this scheme can access loans secured either by collateral or by the Credit Guarantee Fund Scheme (CGFS) for manufacturing, services, trading, and agri-allied enterprises.
The Government of India recognises the challenges that SC/ST and women entrepreneurs face in accessing credit and starting new ventures. Hence, the Stand-Up India loan scheme is an endeavour to create a system that provides financial support to the marginalised entrepreneurs of the country.
The Stand-Up India loans are intended to fund greenfield projects – businesses that are being set up for the first time. This includes ventures in manufacturing, services, trading, and agri-allied sectors. It’s also meant to promote financial inclusivity and equal growth opportunities across the nation.
Under the Stand-Up India scheme, applicants (SC/ST/ and Women) can secure composite loans, which include term loans and working capital, to cover a maximum of 85% of the total project cost. However, this cap would cease to apply if the contribution from the borrower, coupled with any contribution from other schemes, exceeds 15% of the project cost.
Here’s a quick overview of the salient features and benefits of the scheme:
The Stand-Up India scheme rate of interest varies from one lender to another. It depends on factors like the applicant's creditworthiness, collateral pledged, loan tenure, and more.
However, in the interest of supporting startups, the government has capped the interest rate, ensuring it does not exceed the financial institution’s lowest applicable rate for that loan category (i.e., not exceeding the base rate/MCLR + 3% + tenor premium).
To register yourself for the Stand-Up India Scheme, you may follow these steps:
*Please refer to the official Stand-Up India portal for the most up-to-date information on the application process.
Here’s a list of documents you may need to proceed with your application:
*Document requirements may vary across lending institutions or based on the nature of the project.
Despite its progressive intent, the Stand-Up loan scheme faces several implementation challenges:
The Stand-Up India Yojana has opened up crucial credit access for SC/ST and women entrepreneurs, enabling them to grow their ventures with government-backed support.
However, limited awareness, strict eligibility norms, and collateral requirements may still prevent many deserving businesses from fully benefiting from the scheme.
If you're seeking flexible, collateral-free financing to scale your enterprise, SMFG India Credit offers unsecured business loans of up to INR 75 lakhs*. Please note that to qualify, your business should have been operating for at least 3 years with consistent income and profitability for the past 2 years. Apply online today to avail of competitive interest rates and flexible tenures of up to 60 months*! If you’re seeking a higher loan amount, explore our Loan Against Property solutions.
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The Stand-Up India scheme aims to promote entrepreneurship among women and SC/ST communities. It facilitates loans from INR 10 lakhs to INR 1 crore for setting up greenfield enterprises in select sectors.
Scheduled Caste (SC) /Scheduled Tribe (ST) entrepreneurs, and/or women entrepreneurs, can avail loans for their greenfield projects under this scheme.
The Stand-Up India loan scheme aims to support marginalised entrepreneurs (SC/ST/Women) by providing composite loans ranging from INR 10 lakhs to INR 1 crore to support greenfield businesses. However, the Start-Up India initiative is targeted to help young, innovative startups (with turnover not exceeding INR 100 crores in any financial year since the year of incorporation) through mentorship, funding opportunities, and tax benefits.
Hand-holding support means providing the required resources and support at each step of the entrepreneurial journey. This goes beyond just financial assistance and includes investor connections, regulatory guidance, and knowledge sharing.
The Stand-Up India Loan Scheme was initiated by the Hon’ble Prime Minister of India, Shri. Narendra Modi, to promote entrepreneurship and boost economic growth.
No, there is no direct subsidy provided under the Stand-Up India scheme.
SC/ST and/or women entrepreneurs above 18 years of age who are starting new ventures in trading, manufacturing, services, or agri-allied sectors are eligible. Visit the official Stand-Up India portal for more detailed criteria.
Benefits of the scheme include financial support through loans, capped interest rates, hand-holding support, and a flexible tenure of 7 years with a moratorium period of 18 months.
Loan amounts of up to INR 1 crore can be borrowed under the Stand-Up India scheme.
To apply for the Stand-Up India loan, you’ll need to present documents like your identity proof, financial statements, business registration, collateral documents and more.
You can apply online through the official Stand-Up India portal by submitting your business and personal details, along with the required documentation.
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