Stand-Up India Scheme Review, Benefits and Features

Stand-Up India scheme is a government initiative launched on 5th April 2016 to facilitate bank loans for SC/ST and women entrepreneurs. Intent was to establish greenfield enterprises in manufacturing, services and trading sectors to improve economic empowerment and job creation. This scheme has been extended up to the year 2025.

Stand Up India Scheme Review -
Stand Up India Scheme Review –

What is the Stand-Up India Scheme?

Stand-Up India is a wonderful scheme for SC/ST and women entrepreneurs for providing them loans between Rs. 10 lakh and Rs. 1 Crore to promote greenfield enterprise setup in manufacturing, services or trading sectors. Each bank branch must provide loans to at least one SC/ST borrower and one woman borrower for setting up a greenfield enterprise. In case of non-individual enterprises at least 51% of the shareholding should be held by either an SC/ST or woman entrepreneur.

Key Features and Benefits of Stand-Up India Scheme

  • Targeted beneficiaries – The scheme is targeted at women and people from Scheduled Tribes (ST) and Scheduled Castes (SC) who want to start their own businesses in manufacturing, trading or services sector.
  • SIDBI Web Portal – It provides handholding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filling, work shed / utility support services, subsidy schemes etc.
  • Loan amount and type – Provides composite loan (inclusive of term loan and working capital) between 10 lakh and up to 1 crore.
  • Repayment period – The repayment period is up to 7 years, with a moratorium of up to 1 year.
  • Security – The borrower is required to provide a minimum of 10% of the project cost as own contribution.
  • Interest Rate – The rate of interest would be the lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
  • Repayment – The loan is repayable in 7 years with a maximum moratorium period of 18 months.
  • Working Capital – For withdrawal of Working capital up to Rs. 10 lakh can be done via overdraft. Rupay debit card will be issued for the convenience of the borrower. Any working capital above Rs. 10 lakhs limit will get sanctioned by Cash Credit limit.

Eligibility Criteria of Stand-Up India Scheme

We have listed here are the eligibility criteria for Stand-Up India Scheme

  • The applicant should be an Entrepreneur from SC/ST or a female.
  • If the applicant is a male, he must be from SC / ST category.
  • The age of the applicant must be at least 18 years.
  • The applicant should not be in default to any bank/financial institution.
  • Loans can be given only for green field projects.
  • In case of non-individual enterprises, 51% of the shareholding should be held by either SC/ST and/or Women Entrepreneur.

How to Apply for Stand-Up India Scheme?

You can apply in this scheme via both modes online as well as offline.

  • Go to the Stand Up India website:
  • Click on the “Apply” button.
  • Register yourself. Create an account and login.
  • Fill out the online application form.
  • Upload the required documents.
  • Submit the application.

  • You can directly visit the bank’s branch which is participating in the Stand Up India scheme.
  • Meet with Banks Stand Up India nodal officer.
  • Fill the application form.
  • Submit the application form along with the required documents.
  • Alternatively you can also reach out to Lead District Manager (LDM).

Documents Required for Stand Up India Scheme

  • Proof of Identity (Voter’s ID Card, Passport, Driving License, PAN Card)
  • Proof of Residence (Telephone bills, Electricity bill, Property tax receipt, Passport, Voter’s ID Card)
  • Proof of Business Address
  • Non-default certificate from Banks/Financial Institutions
  • Memorandum and Articles of Association/Partnership Deed
  • Assets and liabilities statement of promoters and guarantors with income tax returns
  • Rent Agreement (if business premises on rent) and Pollution control board clearance (if applicable)
  • SSI/MSME Registration (if applicable)
  • Projected balance sheets for working capital limits or term loan period
  • Photocopies of lease deeds/title deeds of properties offered as securities
  • SC/ST category documents (where applicable)

For exposure above ₹25 lakhs:
  • Unit profile with promoter and director details
  • Last three years balance sheets of associate/group companies
  • Project report for proposed project (machinery, suppliers, financial details, labor, staff, etc.)
  • Manufacturing process, executive profiles, tie-ups, raw material suppliers, buyer details, competitor analysis, company strengths, and weaknesses.

Stand Up India Scheme FAQs

What is the Stand Up India scheme?

A government-backed scheme that provides loans to women and SC/ST entrepreneurs to start their own businesses.

Who is eligible for the Stand Up India scheme?

Women and SC/ST entrepreneurs who are at least 18 years old and have a minimum educational qualification of Class 10.

How much loan can I get under the Stand Up India scheme?

You can get a loan of up to ₹1 crore.

What is the interest rate on the loan under the Stand Up India scheme?

The interest rate is fixed by the bank, but it is typically lower than the market rate.

What is the repayment period for the loan under the Stand Up India scheme?

The repayment period is up to 7 years, with a moratorium of up to 1 year.

What are the benefits of the Stand Up India scheme?

The benefits include low-interest rates, reimbursement of up to 3/4th of the total project costs, a long loan repayment period, and minimal security requirements.

Who are the eligible lending institutions for extending loans under the Scheme?

All branches of Scheduled Commercial Banks located across the country.

What is Hand-holding Support?

Guiding an entrepreneur to set up his or her business enterprise starting from training to filling up loan applications.

How do I get handholding support?

You may navigate through the portal or seek assistance from connect center nearby.

This covers all the points on Stand Up India scheme. It’s a very good scheme for SCs and STs and women entrepreneurs. If you have any suggestions or experience, please write in the comment box and will get back to you.

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