Startup City Magazine
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Stand Up India scheme: an initiative to empower SC, ST and women entrepreneurs

Stand Up India scheme: an initiative to empower SC, ST and women entrepreneurs

Puja Bhardwaj | StartupCity Magazine

Stand Up India scheme was launched to shore up SC, ST, and women entrepreneurs in building their business and getting a financial support from banks for the same. This project is a part of the Startup India Action Plan 2016 to encourage startups and new businesses in the country. Here, the enterprises belong to trading, manufacturing, or service sectors can apply for it.

It is expected that this scheme will benefit approx. 2.5 lakh borrowers who can avail required financial support under this scheme through 1.25 lakhs bank branches located across the country. Here, unlike other financial schemes, banks can request for collateral security and can also provide the loan under the CGTMSE scheme without any collateral security like other schemes. The decision of collateral security is completely depends on banks, they decide according to the borrower profile.

Loan Amount

Under the scheme, entrepreneurs can avail loan from Rs. 10 lakh to Rs. 1 crore.

Interest Rate

The rate of interest should be the lowest applicable rate of the bank for that category not exceeding the base rate of the bank + 3% + tenor premium.


The Stand Up India loan amount will cover almost 75% of the total project cost. The entrepreneur is expected to commit at least 10% of the project costs as per the Scheme.


There is only condition that the person availing loan under this scheme like SC, ST or woman should hold at least 51 percent of the shareholding and control in the company.


The loan is repayable in 7 years and holds 18 months of the moratorium period.

The Objective of the Stand-Up India scheme

The purpose of initiating this scheme is to influence and extend the institutional credit system to the undeserved strata of society comprising SC and ST, and women entrepreneurs. Through this scheme, the Indian Government is creating such opportunities that make job seekers to become job creators. Presently, Stand Up India Scheme applies to all scheduled commercial bank branches in India.

Eligibility Criteria

This is suitable for SC/ST and/or woman entrepreneurs, above 18 years of age.

This business loan is only available for a Greenfield project. In this context, Greenfield means the first time venture of the beneficiary in the manufacturing or services or trading sector.

Note: Borrower should not be in default to any bank/financial institution.

Important Documents

  • Identity Proof
  • Residence Proof
  • Business address proof
  • Partnership Deed of the partners
  • Assets and liabilities statement and income tax returns
  • Rent Agreement (if applied)
  • Photocopies of lease deeds/ title deeds
  • Certificate of incorporation from Registrar Of Companies to establishment
  • Certificates of SC/ST

How to Apply

The loan can be availed under the scheme in three ways-

•    Apply at the bank branch

•    Apply through the Stand-Up India portal

•    Avail the loan with the help of Lead District Manager (LDM)

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