Many people dream of starting their own business, but the dream often stops when the question of money comes up. Taking a big loan from a bank is not easy, especially for those who do not have large property to pledge as security. The Government of India’s Stand Up India Yojana was created for Scheduled Caste (SC), Scheduled Tribe (ST) and women entrepreneurs — under the original scheme (2016–March 2025), banks gave loans of ₹10 lakh to ₹1 crore for setting up a first-time business (greenfield enterprise). Important update: the original scheme concluded in March 2025, and the government has announced a revamped version with higher loan limits — check the official portal for the current status before applying. In this article, we explain in simple language what the scheme was, how much loan it gave, who could benefit, which businesses were covered, and what the revamp means for you. All information given here is based on official government sources — the Press Information Bureau (PIB), Ministry of Finance, and the official Stand Up India portal.
What is Stand Up India Yojana?
Stand Up India Yojana was launched by the Government of India on 5 April 2016. Its main goal is to promote entrepreneurship among women, Scheduled Castes (SC) and Scheduled Tribes (ST), so that they can start their own businesses, become financially independent, and create jobs. The government started this scheme because entrepreneurs from these groups often face many difficulties in setting up a business, getting bank loans, and growing further. Stand Up India aims to remove these hurdles and create an environment where every willing person can set up their own enterprise with ease.
The scheme was first launched for a few years, but it was later extended for the entire period of the 15th Finance Commission (2020–25). The original scheme concluded in March 2025. In the Union Budget 2025-26, the Finance Minister announced a new scheme for five lakh SC/ST first-time women entrepreneurs with term loans of up to ₹2 crore, and in March 2026 she confirmed that Stand Up India is being revamped with enhanced benefits after consultations with NITI Aayog — so a revised version with higher loan limits is on the way. Because the scheme is in transition, confirm the current status on the official portal (standupmitra.in) or your bank branch before applying. Loans under the scheme are given through all branches of Scheduled Commercial Banks across the country. According to official government data, loans worth ₹40,710 crore were sanctioned to 180,636 accounts under this scheme up to 21 March 2023. Out of these, more than 1.44 lakh loans (worth ₹33,152 crore) went to women, 26,889 loans (worth ₹5,625 crore) to SC borrowers, and 8,960 loans (worth ₹1,932 crore) to ST borrowers. These figures come from the official fact sheet released by the Press Information Bureau, and they show that the biggest benefit of the scheme has reached women entrepreneurs.
How much loan do you get? (Loan amount and terms)
Under Stand Up India, you can get a bank loan between ₹10 lakh and ₹1 crore. The stated purpose of the scheme is that every bank branch should give loans in this range to at least one SC/ST borrower and at least one woman borrower. Note the words “at least” — this is a minimum target, not a limit. It does not mean a branch will give only two loans; eligible applicants beyond that can also get loans.
Some key points about the loan, as stated in official announcements:
- Margin money: After the announcement in Budget 2021-22, the margin money to be brought by the borrower was reduced from ‘up to 25%’ to ‘up to 15%’ of the project cost. However, in all cases the borrower must bring in a minimum of 10% of the project cost as their own contribution. This means if your project costs ₹50 lakh, you must invest at least ₹5 lakh from your own pocket; the remaining margin money requirement can be met through convergence with eligible Central or State schemes.
- Convergence: The scheme allows convergence with eligible Central and State government schemes, so that subsidy needs or margin money requirements can be met.
- Credit guarantee: To extend collateral-free coverage, the Government of India has set up the Credit Guarantee Fund for Stand Up India (CGFSI). This means eligible borrowers will not be denied loans just because they lack collateral — the guarantee fund gives protection to the banks.
- Composite loan: Examples given in the official fact sheet show that the loan can include both a term loan (for fixed costs like machinery and equipment) and working capital (for day-to-day expenses). For example, an entrepreneur from Kerala received a term loan of ₹75 lakh and a working capital limit of ₹10 lakh for her paper carton unit.
One thing to understand clearly — the exact interest rate and repayment schedule are decided by the bank as per its own rules. In this article we are only stating what is written in official government announcements. For confirmed details about rates and EMIs, contact your bank branch or the official portal.
Who can apply? (Eligibility criteria)
The government has stated the eligibility conditions for Stand Up India loans in very clear words. Let us understand them one by one:
1. Individual applicants
- The applicant must be an SC/ST entrepreneur and/or a woman entrepreneur, and must be above 18 years of age. For women, no category restriction has been stated — the scheme says “SC/ST and/or women”, which means a woman from any category can apply.
- Loans are available only for greenfield projects. Greenfield means the first-time venture of the beneficiary in the manufacturing, services or trading sector, or in activities allied to agriculture. This loan is not given for expanding an already running business.
- The applicant should not be a defaulter to any bank or financial institution.
2. Non-individual enterprises (company, partnership, LLP)
If you are applying as a company, partnership firm or LLP, then 51% of the shareholding and the controlling stake must be held by SC/ST and/or women entrepreneurs. The greenfield and no-default conditions apply here as well.
3. Who is not eligible?
The official eligibility list includes only SC/ST and/or women entrepreneurs, so men from the general category are not eligible under this scheme. Similarly, those who already run a business and want to expand it cannot apply, because the scheme is only for a first (greenfield) venture. And as stated above, loan defaulters are also not eligible.
Which businesses can get the loan? (Eligible sectors)
Under the scheme, loans are given to start a greenfield enterprise in the manufacturing, services or trading sector. In addition, activities allied to agriculture are also covered. The official announcement gives these examples:
- Manufacturing: textile/garment units, food processing, handicrafts, making plastic or auto parts, setting up a production unit with embroidery machines — like the woman entrepreneur from Surat who took a loan for embroidery machines.
- Services: service-sector businesses such as IT services, healthcare, hospitality, tourism, education and consultancy.
- Trading: a new retail or wholesale trading business.
- Agriculture-allied activities: pisciculture (fish farming), beekeeping, poultry, livestock rearing, dairy, fishery, grading-sorting-aggregation agro industries, agriclinics and agribusiness centres, food and agro-processing, and services supporting these.
What is not covered: The government has clearly stated that crop loans and land improvement works such as canals, irrigation and wells are not eligible under this scheme. In other words, you will not get a crop loan for direct farming, but you can get a loan for the allied businesses listed above.
Documents: what will the bank verify?
The government has not released a single official documents checklist — the exact list will be told to you by your bank branch or on the portal at the time of application. But the eligibility conditions make it clear what the bank will verify, so keep these documents ready:
- Identity and age proof — because the applicant must be above 18 years of age (ID proofs such as Aadhaar card and PAN card).
- Category proof — caste certificate for SC/ST applicants, so that the category can be verified.
- Project report of the business — because the loan is given for a specific greenfield project, you will need to submit a project report or business plan giving details of cost, machinery, working capital and expected income.
- Non-defaulter status — the bank will itself check your credit record; you should not already be a defaulter.
- In the case of a company or partnership, documents showing 51% shareholding and controlling stake.
Remember — different banks may ask for slightly different documents, so always confirm the list with your branch before applying.
How to apply? (Official process)
According to the official announcement, a Stand Up India loan can be taken in three ways:
Note: since the original scheme concluded in March 2025 and the revamped version is still being rolled out, check standupmitra.in for the latest application status before visiting a branch.
- 1. Directly at the bank branch: Visit your nearest Scheduled Commercial Bank branch and apply for a loan under Stand Up India.
- 2. Through the official portal: You can apply online at www.standupmitra.in. This portal has been developed by the Small Industries Development Bank of India (SIDBI) for the Stand Up India Scheme.
- 3. Through the Lead District Manager (LDM): You can also contact the LDM of your district to take your application forward.
Handholding support — the special feature of this scheme: The scheme does not stop at just giving loans; it also provides handholding support to potential borrowers. On the standupmitra.in portal, applicants get step-by-step guidance for setting up a business enterprise — from training to filling up the loan application as per bank requirements. For this, there is a network of more than 8,000 Hand Holding Agencies, which connects borrowers to agencies with specific expertise such as Skilling Centres, mentorship support, Entrepreneurship Development Program Centres and District Industries Centres — along with addresses and contact numbers. This means if you do not know how to make a business plan or face difficulty in filling forms, these agencies will help you.
Understand in simple steps: (1) Decide which business to start — it must be greenfield. (2) Prepare its project report (you can take help from a handholding agency). (3) Apply through any of the three ways given above. (4) The bank will assess your project and sanction the loan if found eligible.
Examples given in the official fact sheet
The official fact sheet released by PIB (April 2023) gives examples of some successful borrowers, which show how the scheme is used:
- Event catering business: A woman entrepreneur from Hyderabad took a term loan and working capital from the Charminar branch of Andhra Bank to start a business of supplying chairs and utensils for weddings and functions.
- Embroidery unit: Smt. Sonalben Rupara from Surat applied online on the Stand Up India portal and took a term loan of ₹39 lakh for embroidery machines; she is running her unit successfully and giving employment to 5 to 8 people.
- Paper carton manufacturing: Mrs. Suma K. T. from Kerala received a term loan of ₹75 lakh and a working capital limit of ₹10 lakh from Bank of Baroda, with which she installed modern laser cutting machines in her unit.
These examples are taken from the government fact sheet and show that there is space in the scheme for everything — from small to large projects.
Official links
- Stand Up India official portal: www.standupmitra.in — for online application and handholding support (developed by SIDBI).
- PIB press release (Ministry of Finance): official information on the scheme’s features, eligibility and achievements.
For the latest status of any scheme, always confirm from the official portal or your bank branch — do not blindly trust information given on third-party websites.
FAQ — Frequently asked questions
1. How much loan do you get under Stand Up India?
As per the official announcement, a bank loan of ₹10 lakh to ₹1 crore is given. The aim of the scheme is that every bank branch gives loans in this range to at least one SC/ST borrower and at least one woman borrower.
2. Who can apply for this scheme?
SC/ST entrepreneurs and/or women entrepreneurs who are above 18 years of age. The business must be a first-time venture (greenfield) — in manufacturing, services, trading, or agriculture-allied sectors. The applicant should not be a defaulter to any bank. In the case of a company or partnership, 51% shareholding and controlling stake must be with SC/ST and/or women.
3. Will I get a loan for my already running business?
No. The scheme is only for greenfield projects, meaning the first venture of the beneficiary. This loan is not given for expansion of an existing business.
4. How much margin money will I have to bring?
The borrower must bring at least 10% of the project cost as their own contribution. Total margin money can be up to 15%, which can be met through convergence with eligible Central/State schemes. (It was reduced from 25% to 15% in Budget 2021-22.)
5. What are the ways to apply?
Three ways: (1) by visiting the bank branch directly, (2) online on the official portal www.standupmitra.in, (3) through the Lead District Manager (LDM) of your district. On the portal, more than 8,000 handholding agencies help with everything from training to filling the application.
private information portal, not a government website
