Stand-Up India Scheme: Loans for SC/ST & Women

Overview

Stand-Up India is a flagship scheme launched by the Ministry of Finance in April 2016. It enables scheduled commercial banks to extend loans to underrepresented entrepreneurs, specifically Scheduled Caste (SC), Scheduled Tribe (ST), and women borrowers. The scheme is managed through SIDBI and NABARD and operates through bank branches across the country.

Objective

The scheme aims to promote entrepreneurship at the grassroots level by giving first-generation business owners access to formal credit. It focuses on reducing barriers that SC, ST, and women entrepreneurs face when starting a greenfield enterprise in manufacturing, services, or the trading sector.

Benefits

• Composite loans ranging from Rs 10 lakh to Rs 1 crore
• Covers up to 75% of the project cost
• Repayment period of up to 7 years with a moratorium of up to 18 months
• Working capital component included within the composite loan
• Access to a dedicated portal (standupmitra.in) for handholding support

Eligibility

• SC or ST borrowers above 18 years of age
• Women entrepreneurs above 18 years of age
• The enterprise must be a greenfield project (first-time venture in the sector)
• In case of a non-individual enterprise, at least 51% stake must be held by an SC, ST, or woman borrower
• Borrower must not be in default with any bank or financial institution

Exclusions

• Existing businesses or expansion of ongoing ventures are not covered
• Borrowers who have previously defaulted on loans from any bank or financial institution are excluded
• Enterprises where the qualifying borrower does not hold majority control are not eligible

Application Process

1. Visit standupmitra.in or approach any scheduled commercial bank branch directly
2. Register and fill in the online application form with business details
3. Submit the completed form along with required documents to the branch
4. The bank appraises the project and sanctions the loan if eligibility is confirmed
5. Loan is disbursed after documentation and verification

Documents Required

• Identity proof (Aadhaar, PAN card)
• Address proof
• Caste certificate (for SC/ST applicants)
• Business plan or project report
• Passport-size photographs
• Proof of business ownership or incorporation
• Bank account statements for the last 6 months