Stand-Up India Scheme 2026: Eligibility, Loan Amount, Benefits & How to Apply

Last Updated: September 2026

Starting a business is hard enough when you have money. It's a lot harder when a bank won't lend you money simply because you don't have collateral, a credit history, or a "connection" at the branch. This is exactly the gap the Stand-Up India Scheme was built to close.

If you're a woman entrepreneur, or belong to a Scheduled Caste (SC) or Scheduled Tribe (ST) community, and you're planning to start your own manufacturing, trading, or services business, this scheme can get you a bank loan between ?10 lakh and ?1 crore — with no collateral. In this guide, we'll break down eligibility, benefits, documents, the exact application process, and the mistakes that get applications rejected, in plain English.

What Is the Stand-Up India Scheme?

The Stand-Up India Scheme is a Government of India initiative launched on April 5, 2016, by the Department of Financial Services, Ministry of Finance. Its job is simple: make sure every bank branch in the country funds at least one greenfield (brand-new) business set up by a woman and at least one set up by an SC/ST entrepreneur.

Launched On	April 5, 2016
Administered By	Department of Financial Services (DFS), Ministry of Finance, with SIDBI as the operating agency
Loan Amount	?10 lakh to ?1 crore
Who It's For	Women entrepreneurs, and SC/ST entrepreneurs
Type of Business	New (greenfield) manufacturing, trading, or services enterprise
Collateral	Not required — backed by a government credit guarantee
Official Website	standupmitra.in

As per government data, more than ?61,000 crore has been sanctioned under this scheme to over 2.3 lakh entrepreneurs since it began — a good sign that banks are actually lending under it, not just listing it on paper.

Why the Government Started It

Women and SC/ST entrepreneurs have historically found it hardest to get formal business credit — not because their ideas are weaker, but because they often lack property to pledge as collateral or a long credit history banks look for. Stand-Up India was designed to fix exactly this by making every bank branch responsible for funding at least two such first-time entrepreneurs.

Eligibility Criteria for Stand-Up India Scheme

You can apply for a Stand-Up India loan if you meet the following conditions:

You are 18 years of age or older.
You are a woman entrepreneur, or you belong to a Scheduled Caste (SC) or Scheduled Tribe (ST) community.
You are setting up a greenfield project — meaning this is your first venture in manufacturing, services, or trading (agri-allied activities are also covered).
If you're applying as a non-individual enterprise (partnership, private limited company, etc.), at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur.
You should not be in default to any bank or financial institution.
Only one loan per eligible category per household is generally allowed under the scheme's design, so plan your application around your actual business need.

Note: "Greenfield" is the key word here. If you already run a business and want to expand or renovate it, Stand-Up India isn't the right scheme — this one is meant for entrepreneurs starting fresh. For an existing business looking to scale, schemes like PMEGP or a regular MSME loan may fit better.

Stand-Up India Loan Amount & Financial Assistance

This is the section most founders skip straight to, so here are the numbers:

Loan size: ?10 lakh to ?1 crore, given as a composite loan — meaning it covers both your term loan (machinery, setup, renovation) and your working capital needs in one sanction.
Project cost covered: The bank loan is capped at up to 75% of the project cost. This cap doesn't apply if your own contribution plus any convergence support (from other central/state schemes) already covers more than 25% of the project cost.
Your minimum contribution (margin money): You're expected to bring in at least 10% of the project cost yourself. Up to 15% margin money support can come through convergence with other government schemes, which can bring your own cash contribution down further.
Collateral: None. The loan is backed by the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSI), managed by the National Credit Guarantee Trustee Company (NCGTC), so the bank's risk is covered without asking you for security.
Interest rate: The lowest rate the bank applies to that category of borrower, capped at the bank's base rate/MCLR + 3% + a tenor premium. In practice, this keeps rates lower than what a typical unsecured business loan would cost.
Repayment tenure: Up to 7 years, with a moratorium (repayment holiday) of up to 18 months so your business has room to breathe before EMIs start.
Working capital access: Disbursed through an overdraft facility with a RuPay debit card, so you can draw funds as your business actually needs them.

Benefits of the Stand-Up India Scheme

Beyond the loan amount itself, here's what makes this scheme genuinely useful for a first-time founder:

No collateral, no third-party guarantee — a big deal if you're starting out without property or assets to pledge.
Handholding support — the standupmitra.in portal connects you with agencies offering free skill training, mentorship, and help preparing your project report before you even apply.
Faster, more transparent processing — the online portal tracks your application status and connects you directly with your chosen bank branch.
Composite financing — you don't need to run separate applications for machinery/setup costs and day-to-day working capital.
Convergence with other schemes — you can combine this with state subsidy schemes or central schemes like the Credit Linked Capital Subsidy Scheme (CLCSS) to reduce your own contribution further.
Available at every scheduled commercial bank branch across India, not restricted to a handful of designated branches.

Documents Required for Stand-Up India Loan

Keep these ready before you start your application — most rejections at the first stage happen because of missing or mismatched paperwork:

Identity & address proof: Aadhaar Card, PAN Card, and Voter ID/Passport/Driving Licence
Category proof: Caste certificate from a competent authority (for SC/ST applicants)
Business proof: A detailed project report/business plan with cost break-up and revenue projections, Udyam/MSME registration (if already taken), and partnership deed or Certificate of Incorporation/MOA-AOA for non-individual entities
Financial documents: Last 6 months' bank statements, income tax returns if applicable, and quotations for machinery or equipment you plan to buy
Premises proof: Rent/lease agreement or ownership document for your business location
Photographs: Recent passport-size photographs
Declaration: A self-declaration that you have no default history with any bank or financial institution

All copies should be self-attested — an unsigned photocopy is one of the most common reasons applications get sent back for resubmission.

How to Apply for Stand-Up India Loan: Step-by-Step Process

Online Application (Recommended)

Go to the official portal standupmitra.in and register as a "loan seeker."
Fill in your personal details and select your category (Woman/SC/ST), state, and district.
Choose whether you need handholding support (free training and mentorship) before applying — genuinely worth using if you're new to running a business.
Complete the loan application with your business plan, project cost, and the type of enterprise you're setting up.
Upload scanned, self-attested copies of all required documents.
Select your preferred bank and submit — you'll receive an application reference number.
The selected bank branch will contact you (typically within a week to ten days) for document verification and a discussion on your project.
The bank appraises your project, may conduct a site visit, and then sanctions the loan.
On approval, funds are disbursed and a RuPay card is issued for your working capital limit.

You can also apply through jansamarth.in, the unified government loan portal, which links to Stand-Up India along with other credit-linked schemes.

Offline Application

Walk into your nearest scheduled commercial bank branch and ask for the Stand-Up India loan application form.
Submit the filled form along with your documents and business plan.
Collect an acknowledgment/tracking reference from the branch.
Follow up periodically — banks process a high volume of applications, so a polite check-in every couple of weeks helps.

Official Website and Useful Links

Stand-Up India Portal: https://www.standupmitra.in/
Scheme listing on National Scheme Portal: https://www.myscheme.gov.in/schemes/sui
Department of Financial Services page: https://financialservices.gov.in/stand-india-scheme-supi
Unified loan portal: https://www.jansamarth.in/

Always apply and verify scheme details only through these official portals. Never pay any third party or agent claiming to "guarantee" a Stand-Up India loan sanction.

Who Should Apply for Stand-Up India Scheme

This scheme is a strong fit if you are:

A woman planning to start your first manufacturing, trading, or services business.
An SC/ST entrepreneur with a workable business plan for a new venture, but no collateral or established credit history.
A founder who needs anywhere between ?10 lakh and ?1 crore and wants a composite loan (setup cost + working capital) rather than juggling multiple lenders.
Part of a founding team where SC/ST or women promoters hold at least 51% ownership and control.

It's not the right fit if you're expanding or renovating an existing business, since the scheme is specifically for greenfield (new) ventures — check PMEGP or a standard MSME loan instead for expansion needs.

Common Mistakes to Avoid

Applying for an existing business. Stand-Up India funds only new (greenfield) enterprises — expansion or renovation of a running business doesn't qualify.
Submitting a generic or copy-pasted business plan. Banks want realistic cost estimates and revenue projections specific to your business, not a template downloaded off the internet.
Unsigned or mismatched documents. Every photocopy needs self-attestation, and your signature should match across all documents.
Skipping the handholding support. It's free, and it genuinely improves the quality of your application and project report.
Not checking your own credit history first. Existing loan defaults, even on personal loans, can hold up your application.
Treating it as a subsidy. It's a bank loan you must repay with interest — the moratorium only delays EMIs, it doesn't waive them.
Going silent after submission. Follow up with your branch — a proactive applicant tends to move through appraisal faster than one who waits passively.

Stand-Up India vs Other Government Loan Schemes

Scheme	Loan Amount	Who Can Apply	Collateral
Stand-Up India	?10 lakh – ?1 crore	Women & SC/ST entrepreneurs (greenfield only)	Not required
PMEGP	Up to ?50 lakh (manufacturing) / ?20 lakh (services)	Any individual aged 18+, with higher subsidy for SC/ST/women/special categories	Not required up to the prescribed limit
PM Mudra Yojana (PMMY)	Up to ?20 lakh (Tarun Plus category)	Any micro/small business owner	Not required
Scheme for First-Time Entrepreneurs (announced in Union Budget 2025-26)	Up to ?2 crore	5 lakh women, SC and ST first-time entrepreneurs (newer, larger-ticket scheme built on Stand-Up India's learnings)	Guarantee-backed model, on the lines of Stand-Up India

If your funding need is smaller, Mudra or PMEGP may be quicker routes. If you need a larger composite loan and fit the SC/ST/women eligibility, Stand-Up India remains the most established option — and worth watching alongside the newer Budget 2025-26 scheme as it rolls out.

Frequently Asked Questions (FAQs)

1. What is the Stand-Up India Scheme?

It's a Government of India scheme, launched in April 2016, that helps banks provide loans between ?10 lakh and ?1 crore to women and SC/ST entrepreneurs setting up a new (greenfield) manufacturing, trading, or services business.

2. Who is eligible for a Stand-Up India loan?

Any Indian citizen aged 18 or above who is a woman or belongs to an SC/ST community, and is setting up a first-time greenfield enterprise. For companies or partnerships, SC/ST or women promoters must hold at least 51% shareholding and control.

3. Is collateral required for a Stand-Up India loan?

No. The loan is backed by the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSI), so you don't need to pledge property or assets as security.

4. What is the interest rate on a Stand-Up India loan?

It's the lowest rate applicable to your borrower category at that bank, capped at the bank's base rate/MCLR plus 3% plus a tenor premium — generally lower than a typical unsecured business loan.

5. Can I apply for a Stand-Up India loan for an existing business?

No, the scheme is meant only for new, first-time (greenfield) ventures. If you're expanding an existing business, look at schemes like PMEGP or a standard MSME loan instead.

6. How do I apply for a Stand-Up India loan online?

Register as a loan seeker on standupmitra.in, fill in your business and personal details, upload your documents, and select a preferred bank branch. You can also apply via jansamarth.in.

7. What is the repayment period for Stand-Up India loans?

Up to 7 years, including a moratorium of up to 18 months before EMI repayments begin.

8. What documents are needed to apply?

Aadhaar and PAN card, caste certificate (for SC/ST applicants), a detailed business plan, last 6 months' bank statements, premises proof, and passport-size photographs, all self-attested.

9. How much of the project cost does the loan cover?

Up to 75% of the project cost, with you expected to contribute at least 10% yourself; up to 15% margin money support can come from convergence with other government schemes.

10. Is Stand-Up India the same as the Mudra Loan or PMEGP?

No. They're separate schemes with different loan limits and eligibility rules. Stand-Up India specifically targets women and SC/ST entrepreneurs for new businesses in the ?10 lakh–?1 crore range, while Mudra and PMEGP have broader eligibility and different ticket sizes.

This article reflects details available from official government sources as of September 2026. Scheme guidelines, loan limits, and validity periods are reviewed periodically by the government — always confirm the latest details on standupmitra.in or myscheme.gov.in before applying. This post is for general information and isn't financial or legal advice — please verify your specific eligibility with your bank branch.

Stand-Up India Scheme 2026: Eligibility & How to Apply