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Stand-Up India Scheme: Opportunities for SC/ST and Women Entrepreneurs

Vikash

• 8 min read
Stand-Up India Scheme

The Stand Up India Read scheme creates new opportunities for SC/ST and women entrepreneurs. In this guide, you will learn how the scheme works, who can apply, the eligibility rules, loan details, documents needed, interest rates, and step-by-step instructions to apply. You will also see business ideas that fit this scheme, challenges you might face, and a clear review of how the scheme is helping new entrepreneurs today.

If you want to start a business but struggle with funding or guidance, this blog will help you understand whether this scheme is the right choice for you and how you can use it to build a successful venture.

What is the Stand-Up India Scheme?

The Stand Up India scheme is a government initiative that aims to support SC/ST and women entrepreneurs by offering financial help to start new businesses. It is designed for greenfield enterprises. It supports setting up a new enterprise in manufacturing, services, trading, and agri-allied activities. • “Greenfield enterprise” means a first-time venture by the eligible person.

 • The loan range is between ₹10 lakh and ₹1 crore. • The scheme tries to ensure that at least one SC/ST borrower and at least one woman borrower per bank branch get access. 

Stand-Up India Scheme Launch Date

The Stand Up India scheme was formally launched on 5 April 2016 by the Government of India. 

Stand-Up India Scheme Details & Features

Here are the key Stand Up India scheme details:

  • It is implemented through all branches of scheduled commercial banks in India.
  • The loan is composite: term loan + working capital.
  • Loan size: between ₹10 lakh and ₹1 crore (i.e., ₹10 lakh to ₹100 lakh) for eligible new ventures.
  • Margin money (own contribution): The borrower must bring in a minimum of 10% of the project cost. The scheme may allow up to a 15% margin money requirement.
  • Repayment: Up to 7 years, with a moratorium (no payment) period of up to 18 months.

Features of the scheme

  • Specifically for SC/ST entrepreneurs and/or women.
  • For “greenfield” projects, only the first-time venture in manufacturing, the services sector, and activities related to agriculture are considered.
  • In case of a non-individual entity (company/partnership), at least 51% shareholding and controlling stake must be held by either SC/ST or a woman.

Stand-Up India Scheme Eligibility

To understand the Stand Up India scheme eligibility, here are the criteria:

  • The applicant must be an individual entrepreneur (or a company/partnership where the majority stake is SC/ST or a woman).
  • Age: Above 18 years.
  • The enterprise must be new (greenfield). Existing businesses cannot normally avail of the scheme (see the section below).
  • The applicant should not be in default with any bank or financial institution.

Under Which Ministry is the Scheme?

The scheme is under the jurisdiction of the Department of Financial Services (DFS), which falls under the Ministry of Finance of India. 

How to Apply for the Scheme

Here are the steps to apply for the Stand Up India scheme:

  1. Visit the official portal or approach a bank branch of a scheduled commercial bank. For example, the portal is named “StandUpMitra”.
  2. Prepare a project report detailing your idea for setting up a greenfield enterprise (in manufacturing, services, trading, or agri-allied).
  3. Gather required documents (see next section) and check the bank’s eligibility criteria.
  4. Apply the scheme to the bank branch; the bank processes your loan under the scheme guidelines.
  5. Upon sanction, the loan is disbursed. The scheme may also provide hand-holding assistance, mentorship, and training via hand-holding agencies.

Documents Required for Stand-Up India Scheme

When you apply, the bank will ask for the documents required for the Stand Up India scheme. Typical ones include:

  • Proof of identity and address (for SC/ST or woman applicant).
  • Certificate proving SC/ST status (if applicable).
  • Business plan/project report for the enterprise.
  • Audited accounts or financials, if any (though it's a new business).
  • Bank statements, KYC for the applicant.
  • In case of company/partnership: shareholding pattern, registration papers.
  • Other documents as required by the lending bank.

While banks may differ slightly, keeping these ready will help speed up the process.

Stand-Up India Loan Scheme: Interest Rate & Subsidy

On the Stand Up India loan scheme interest rate, banks apply their lowest applicable rate for that borrower category, not to exceed (base rate/MCLR + 3% + tenor premium).There is no fixed “one-size” rate across India; it depends on the bank, project risk, and borrower profile.

As for the Stand Up India scheme subsidy, while the scheme itself doesn’t always specify a direct subsidy, it can converge with other Central or State subsidy schemes, especially margin money support and hand-holding support. 

Stand-Up India Scheme for SC/ST and Women

One of the strongest features is the focus on SC/ST entrepreneurs and women. The scheme ensures that:

  • At least one SC/ST borrower and at least one woman borrower are sanctioned for loans per bank branch.
  • This emphasis opens a path for groups often underserved in business financing.
  • For women entrepreneurs, especially, this scheme becomes a vital stepping stone to move from small to formal business operations.

Best Business Ideas & Businesses for the Scheme

Here are some business ideas under the Stand Up India scheme, and the best business for the Stand Up India scheme that fit well:

  • Manufacturing light equipment or consumer goods.
  • Service enterprises like small-scale IT services, training centres, and repair services.
  • Trading business like wholesale retail, agri-allied distribution.
  • Agri-allied businesses like processing units, horticulture allied services.

For businesses for the Stand Up India scheme, choose something new (greenfield) and scalable, within the loan amount range (₹10 lakh to ₹1 crore).For existing businesses, avail Stand Up India scheme: Generally, the scheme is for new enterprises (first-time venture), so if your business already exists, check with the bank, but usually existing businesses don’t qualify. 

Stand-Up India Scheme Guidelines and Review

When you look at the Stand Up India scheme guidelines, you’ll find clear directions on loan size, eligibility, security, repayment, etc.On the Stand Up India scheme review, official data shows strong growth:

  • As of 17 March 2025, the total amount sanctioned under the scheme reached about ₹61,020.41 crore since launch.
  • SC accounts increased from 9,399 to 46,248, and women entrepreneur accounts increased from 55,644 to 1,90,844 over the period.

It shows the scheme is making a meaningful impact.

Stand-Up India Scheme to Promote Entrepreneurship

The scheme is clearly aimed at the Stand Up India scheme to promote entrepreneurship, especially among underrepresented groups. Giving access to loans helps first-time entrepreneurs launch businesses, and it helps create jobs and the economy. 

Challenges in the Stand-Up India Scheme

No scheme is perfect. Some of the challenges in the Stand Up India scheme include:

  • The requirement for “greenfield” may block existing micro businesses from upgrading.
  • Some applicants may find it difficult to prepare project reports or secure the required margin contribution.
  • Interest rates may still be higher depending on the bank and applicant risk profile.
  • Awareness among target groups (SC/ST, women) may be low in some regions.
  • Some sectors may find it harder to scale given the upper loan limit of ₹1 crore.

CIBIL Score Required for Stand-Up India Scheme

While there is no fixed national rule mentioned for the credit score required for the Stand Up India scheme, banks will check the credit history of the applicant. Since the eligible entrepreneur must not be in default with any bank, maintaining a decent credit score (CIBIL or equivalent) will help. It is advisable to have a clean credit history before applying.

Steps to Register / Application in Practice

Here’s a simplified path to stand up the India scheme registration and application:

  1. Decide business idea, ensure it is a new venture (greenfield).
  2. Check that you are eligible (SC/ST or woman, above 18, not in default).
  3. Prepare business plan/project report: cost, revenue model, loan requirement, working capital, etc.
  4. Visit a branch of a scheduled commercial bank participating in the scheme (every branch under the scheme).
  5. Submit a filled application along with documents (ID, address, SC/ST certificate if applicable, business plan, KYC, etc).
  6. The bank assesses your loan and either sanctions it under the scheme guidelines.
  7. On sanction, you may get hand-holding support via the portal/mentoring agencies.

How GimBooks Can Help Entrepreneurs Under the Stand-Up India Scheme

Starting a new business under the Stand Up India scheme needs clear planning, proper financial records, and smooth documentation. Many first-time entrepreneurs struggle with accounting, invoicing, and organizing their financial data, especially at the early stage. It is where GimBooks becomes useful.

GimBooks helps new business owners manage their daily operations without needing deep accounting knowledge. It gives them the tools to stay organized, maintain clean records, and show proper financial reports when required for loans, audits, or verification.

Here is how GimBooks supports entrepreneurs who apply for the Stand Up India loan scheme:

  • Helps create GST-compliant invoices in minutes, which is important when applying for loans and proving business activity.
  • Keeps accurate bookkeeping and expense tracking, making it easy to monitor cash flow.
  • Generates financial reports, which can support loan evaluation and business planning.
  • Helps manage inventory, purchase orders, and payments through one simple dashboard.
  • Offers integrated banking, which supports smooth transactions and builds financial credibility.
  • Saves time and reduces paperwork by storing all records safely in the cloud.

Whether you are starting a manufacturing unit, trading business, or service company, GimBooks helps you stay ready with proper financial documentation and business records. It increases trust and makes your loan application process more confident and professional.

GimBooks is built for small and micro-sized businesses and helps first-time entrepreneurs run their business smoothly from day one. It is a strong support for those planning to grow with the Stand Up India scheme.

Wrapping Up

The Stand Up India scheme is a strong chance for SC/ST and women entrepreneurs who want to start a new business but face financial challenges. It offers funding support, clear guidelines, and a fair opportunity to build a successful venture from the ground up. With the right planning and proper documents, many first-time entrepreneurs can turn their ideas into real businesses and create more jobs in their community.

If you are thinking about applying, take time to understand the eligibility rules, loan structure, and application steps. Being prepared makes the process smoother and increases the chance of approval.

Tools like GimBooks can make your journey easier by helping you manage accounts, keep clean financial records, and stay organized from day one. It not only supports growth but also builds trust when applying for loans or planning business expansion.

Success begins with a single step, and the Stand Up India scheme can be that step for many new entrepreneurs ready to build a better future. If you have a strong idea and a clear plan, this is the right time to start.

To know more, explore the GimBooks expert blog section!

Also check

How Pradhan Mantri Mudra Yojana (PMMY) Can Boost Your Small Business

FAQs about the Stand Up India Scheme

1. What is the purpose of the Stand Up India scheme?

The Stand Up India scheme is designed to support SC/ST and women entrepreneurs by helping them get bank loans to start new businesses. It aims to promote self-employment and build more small and micro-sized businesses in India.

2. Who is eligible for the Stand Up India scheme?

The Stand Up India scheme is open to SC/ST and women entrepreneurs who want to start a first-time business. They must be 18 years or older, and the business must be a greenfield project.

3. What is the loan amount offered under the Stand Up India scheme?

Under the Stand Up India scheme, applicants can get a loan between ₹10 lakh and ₹1 crore for manufacturing, services, trading, or agri-allied activities.

4. What documents are required for the Stand Up India scheme application?

For the Stand Up India scheme, applicants need a business plan, identity proof, address proof, caste certificate if applicable, bank account details, and financial records, if any.

5. How to apply for the Stand Up India scheme?

To apply for the Stand Up India scheme, you can visit the official portal, contact any bank branch, or use the online loan application system. You must submit the required documents and follow the verification steps to get approval.