Stand-Up India Scheme

The Stand-Up India Scheme was launched on April 5, 2016, by the Government of India to encourage entrepreneurship among women and Scheduled Castes (SC)/Scheduled Tribes (ST) individuals. It intends to help women and SC/ST entrepreneurs get access to bank loans ranging from ₹10 Lakhs to ₹1 Crore to set up green field projects.

Green field projects are the ones that are started from scratch without any prior setup, and can be a part of any sector including manufacturing, services, and trading, as well as activities related to agriculture.

As of March 2023, over ₹40,700 Crores has been sanctioned under this scheme, which is helping more than 180,000 borrowers. Moreover, a significant portion of these loans, that is about 80%, has been allocated to women entrepreneurs.

The Stand-Up India scheme’s interest rates are competitive, lower than the rates otherwise offered by a particular bank. These rates are linked to the Marginal Cost of Funds-based Lending Rate (MCLR) of the bank. These charges are designed to remain affordable, ensuring accessibility for first-time entrepreneurs.

Here is a tabular overview of the Stand-Up India scheme interest rate and other details:

Before applying for the scheme, make sure you meet the required Stand-Up India scheme eligibility parameters. Here are a few of them:

• You must be an SC/ST member or a women entrepreneur

• You need to be at least 18 years of age

• You must have a credible repayment history

• You should not be a loan defaulter

• Around 51% of the controlling stake of a non-individual enterprise must be held by a woman, ST or SC borrower

• You must get the scheme only when you are establishing your business in services, manufacturing, trading or agriculture-related sectors for the first time

• You shall be required to contribute a minimum of 10% of the project cost

Submit the following documents when applying for this scheme:

• A copy of the duly filled application form along with the latest passport-sized photographs

• Identity proof

Driving licence, passport, Aadhaar card, Voter’s ID or a PAN Card

• Residence Proof

Aadhaar card, PAN Card, electricity bill or a phone bill

• Proof of business address

• Deed of partnership (if available)

• Projected balance sheets for the next two years in case of working capital limits

• Copies of the lease deed or rent agreement of the office space/manufacturing unit

• Any other document as per the requirements of the bank

• SSI / MSME registration if applicable

• Caste certificate or any document that can be used as a proof of the individual being from SC/ST  category

The banks offering loans under the Stand-Up India scheme are:

Follow the process mentioned below to get the benefits of the Stand-Up India scheme:

Through SIDBI’s Stand-Up India Portal

1. Visit the official portal www.standupmitra.in.

2. Select your category (SC, ST, Woman) and indicate if you hold a 51% or higher stake in the business

3. Enter the nature of the proposed business and other details

4. Enter all requested personal details, including the name of the enterprise and its constitution

5. Click on the "Register" button to complete your application

Directly at the Bank Branch

1. You can apply by visiting any participating bank branch that offers Stand-Up India loans (See the list of banks above)

2. Keep all the documents ready along with photocopies  to submit

3. Fill out the application form provided at the branch and submit it along with your documents

Through Lead District Manager (LDM)

1. Find out who your Lead District Manager is by checking local government resources or visiting the Stand-Up India portal

2. When you log in to the portal, you will be redirected to the dashboard where you can see the respective LDM and connect centres 

3. Contact the LDMs and seek their guidance

4. Submit application and documents as directed by your LDM

The Stand-Up India loan is a suitable option for women, SC and ST entrepreneurs looking to achieve their dreams of owning a business. For additional details of the scheme or to get business financing and other forms of credit, look no further than Bajaj Markets.