Stand-Up India Scheme 2025: Loan Program for Women & SC/ST Entrepreneurs

In the crowd of ongoing startup trends, women and SC/ST entrepreneurs are somehow still finding themselves at the edge of opportunity rather than at the center of it. Noticing this gap, our government has launched Stand-Up India 2025, an initiative that will transform the entire business ecosystem. Yes, this scheme is especially for those who’ve often been excluded from the startup spotlight—women and SC/ST entrepreneurs. These are the people who are filled with innovative visions but lack access to crucial resources.

By providing bank loans ranging from ₹10 lakh to ₹1 crore, the Stand-Up India scheme helps first-time entrepreneurs in the manufacturing, services, or trading sectors set up their own ventures. [ENHANCED] Additionally, in Union Budget 2025-26, the government announced an enhanced scheme targeting five lakh SC/ST first-time women entrepreneurs with term loans of up to ₹2 crore (source: IBEF Stand-Up India Report).

So, if you are a woman or belong to the SC/ST community and have already dreamt of your own startup, here is everything you must know about this scheme, eligibility, and how to apply.

Understanding Stand-Up India Scheme

With the main motive to promote entrepreneurship among women, Scheduled Caste (SC), and Scheduled Tribe (ST) communities, the Government of India launched the Stand-Up India Scheme on April 5, 2016. The scheme has been extended until 2025, with continuous enhancements to better serve beneficiaries (source: Official Stand-Up India Portal).

To set up a new enterprise, it provides bank loans to at least one SC/ST borrower and one woman borrower per bank branch. The initiative is for those who have faced financial exclusion in the past. By making these groups a part of the country’s economic growth and job creation efforts, the scheme effortlessly opens the door for fresh opportunities for individuals who have long been on the sidelines.

People also read about NIDHI Scheme : How Nidhi can Launch your Startup journey.

As of January 2025, the Stand Up India Scheme has benefited 1,94,804 women entrepreneurs, 49,031 entrepreneurs belonging to the SC category, and 15,962 entrepreneurs from the ST category, with banks sanctioning ₹62,426.52 crore to about 273,634 beneficiaries (source: IBEF Stand-Up India Report).

Key Features of the Stand-Up India Loan

Here are the notable features of the scheme that might help you discover new opportunities for entrepreneurship and financial independence:

Loan Amount

Entrepreneurs with eligibility can easily avail of a composite loan ranging from ₹10 Lakh to ₹1 Crore. The composite loan includes both the term loan and working capital components. The loan typically covers 85% of the project cost, with a minimum mandatory margin of 10% from the borrower (source: SBI Stand-Up India Guidelines).

Type of Loan

The Stand-Up India loan is a composite loan, meaning it includes both- term loan and working capital.

• The term loan covers the capital expenditure, including purchasing equipment, machinery, or setting-up infrastructure for the business.
• The working capital component makes sure that the entrepreneur has enough funds to manage daily operations, like inventory, salaries, and utilities.

Interest Rate

The Stand-Up India scheme provides loans at competitive interest rates. The interest rate is the lowest applicable rate of the bank for that particular category (rating category) and must not exceed MCLR (Marginal Cost of Fund-based Lending Rate) + 3% + Tenor Premium. For reference, SBI’s current rate under this scheme is EBLR + 3.25% (totaling 12.15% as of February 2025) (source: SBI Business Loans).

Repayment

Borrowers are given sufficient time to repay the loan with flexible terms.

• Repayment tenure is up to 7 years.
• Also, you get up to 18 months moratorium period before you have to start paying EMIs.

Collateral and Security

[CLARIFIED] The loan requires primary security from the borrower. Additionally, it may be secured by collateral security or guarantee under the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks. This credit guarantee covers up to 80% of the loan amount, reducing risk for both lenders and borrowers (source: Central Bank of India Guidelines).

Who Qualifies for the Stand-Up India Loan?

Eligibility for Stand-Up India Scheme is not limited to any specific region or state. The applicant must meet certain key conditions:

• Age: Applicant must be above 18 years
• Community: Must be a woman or belong to the SC/ST category
• Nature of Business: The loan should be for a greenfield enterprise (i.e., first-time venture in manufacturing, services, trading, or agriculture-allied activities)
• Ownership: For a non-individual enterprise, at least 51% stake should be owned and actively managed by a woman or SC/ST entrepreneur.
• No Default: The borrower must not have any missed payments or outstanding dues with any bank or financial institution.
• Registration: Udyam Registration Certificate is mandatory for loan applications (source: Central Bank of India).

How Stand-Up India Loan Empowers Women Entrepreneurs

The Stand-Up India loan for women entrepreneurs is not just a financial boost, it is a confidence builder.

Having your own business with the power to make decisions gives women a sense of independence and self-worth.

Through entrepreneurship, women can overcome the biggest hurdle – access to capital

Banks and NABARD act as a support system for women and help them throughout their business journey. Focusing on inclusivity, the Stand-Up India scheme encourages women from rural and semi-urban areas to become business owners.

Notably, 84% of the total 2.09 lakh loans sanctioned under the scheme have been allocated to women entrepreneurs, demonstrating the significant impact on women’s economic empowerment.

Stand-Up India Loans for SC/ST Entrepreneurs

For SC/ST entrepreneurs, the Stand-Up India SC ST loans are like a lifeline to turn their dreams into reality and break generational inequality.

SC/ST communities become self-reliant and economically empowered

The scheme supports first-generation entrepreneurs with resources that go beyond just funding.

Through training and mentoring, they gain the skills and confidence. With the scheme, SC/ST entrepreneurs build credit history and unlock future funding opportunities.

Applying for Stand-Up India: A Quick How-To

If you are wondering how to apply for Stand Up India loan, here is an easy guide:

Option 1: Online Application

1. Visit the official Stand-Up India portal (standupmitra.in)
2. Click on “Register” and fill in your personal and business details
3. Choose your preferred bank branch
4. Submit necessary documents including PAN, Aadhaar, business plan, etc.
5. Track your application status through the portal.

Option 2: Offline via Bank Branch

1. Make a visit to your nearest scheduled commercial bank branch
2. Schedule a meeting with a loan officer and express interest in the Stand-Up India Scheme
3. Submit your application and required documents
4. Lastly, after the application is reviewed and approved, the loan will be disbursed into your business account.

Required Documents

• Identity and Address Proof (Aadhaar, PAN)
• Caste Certificate (for SC/ST applicants)
• Comprehensive Business Plan
• Bank Statement (last 6 months)
• Proof of Business Location
• Udyam Registration Certificate
• Any additional documents as required by the bank

Recent Enhancements in 2025

The Stand-Up India scheme has seen significant enhancements in 2025:

• New Scheme Announcement: Union Budget 2025-26 introduced a targeted scheme for five lakh SC/ST first-time women entrepreneurs with loans up to ₹2 crore.
• Reduced Margin Requirements: Margin money requirement reduced from 25% to 15% of project cost.
• Extended Coverage: Agriculture-allied activities are now eligible under the scheme.
• Improved Processing: Streamlined application process through digital platforms.

Final Thoughts

The Stand-Up India scheme 2025 is helping a number of people from less-represented communities, especially women and SC/ST entrepreneurs– start their own businesses. The scheme is not just about providing loans but also developing skills, confidence, and long-term success.

Also, the Stand-Up India scheme application process is not as complicated as many might think. Just ensure you have the key things in place before you apply. With over ₹62,400 crore sanctioned to nearly 2.74 lakh beneficiaries, this scheme continues to be a cornerstone of inclusive entrepreneurship development in India.

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