The Stand Up India Scheme continues to be one of India’s most impactful entrepreneurship initiatives in 2025. Alongside the existing scheme, the Government of India has announced a new credit support program for five lakh women and SC/ST first-time entrepreneurs, offering term loans of up to ₹2 crore over the next five years. This initiative builds upon the success of Stand Up India and aims to strengthen financial inclusion and business ownership among underrepresented communities.
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. 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). Now this scheme is closed. You can’t apply for it. Government is planning to launch revamped version Stand Up India Scheme 2.0 soon.
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 2025, the Stand Up India Scheme has sanctioned more than ₹67,000 crore to over 3 lakh beneficiaries across India. Women entrepreneurs continue to account for the majority of beneficiaries under the scheme, underscoring its significant role in promoting women’s entrepreneurship, financial inclusion, and inclusive economic growth.
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.
Final Thoughts
The Stand Up India Scheme 2026 is closed now. The government is planning to launched revamped version Stand Up India Scheme 2.0 soon.
FAQs
Stand Up India Scheme provides loans from ₹10 lakh to ₹1 crore for women and SC/ST entrepreneurs. The new 2025-26 budget also offers enhanced loans up to ₹2 crore for SC/ST women entrepreneurs.
Women or SC/ST individuals above 18 years can apply for first-time greenfield enterprises in manufacturing, services, trading, or agriculture. Must have Udyam Registration and no bank defaults.
Visit standupmitra.in, register with your details, upload documents (PAN, Aadhaar, business plan), choose bank branch, and submit. You can also apply directly at any scheduled commercial bank.
Interest rate cannot exceed MCLR + 3% + Tenor Premium. Example: SBI charges 12.15% currently. Repayment tenure is 7 years with 18-month moratorium period.
Aadhaar, PAN, caste certificate (SC/ST), business plan, bank statements, business location proof, and Udyam Registration Certificate.
