The Stand-Up India Scheme is a flagship initiative launched by the Government of India to promote entrepreneurship among historically underserved communities—specifically Scheduled Castes (SC), Scheduled Tribes (ST), and women entrepreneurs. The scheme aims to facilitate bank loans between ₹10 lakh and ₹1 Crore to set up a new (greenfield) enterprise in the manufacturing, services, trading, or allied-to-agriculture sectors.
This detailed guide breaks down the eligibility criteria, the unique features of the loan, and the step-by-step application process to help aspiring entrepreneurs leverage this crucial financial support.
Key Features and Objectives of the Scheme
The core objective of the Stand-Up India scheme is to encourage financial inclusion and job creation by easing credit access for SC, ST, and women entrepreneurs.
Loan Structure
- Loan Amount: Composite loan (inclusive of term loan and working capital) ranging from ₹10 lakh to ₹100 lakh (₹1 Crore).
- Purpose: Exclusively for Greenfield Enterprises (a beneficiary's first-time venture) in the manufacturing, services, trading, or allied-to-agriculture sectors.
- Loan Coverage: The composite loan is intended to cover up to 85% of the total project cost.
- Margin Money: The borrower must bring in a minimum of 10% of the project cost as their own contribution. The scheme allows up to 15% margin money, which can be provided in convergence with eligible Central/State schemes.
- Interest Rate: The rate of interest is the lowest applicable rate of the bank for that category (rating category), but it cannot exceed the (Base Rate/MCLR + 3% + Tenor Premium).
- Repayment: The loan is repayable in 7 years, with a maximum moratorium period of 18 months.
- Security: The loan is secured by the primary security of the asset created by the loan and may be further secured by collateral security or guarantee under the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL).
Eligibility Criteria
The scheme is strictly targeted at specific demographic groups:
- Target Groups: The applicant must be an SC/ST individual and/or a Woman entrepreneur.
- Age Limit: The applicant must be above 18 years of age.
- New Project: The loan is available only for Greenfield projects (first-time venture).
- Non-Individuals: In case of non-individual enterprises (e.g., Partnership Firm, LLP, Private Limited Company), at least 51% of the shareholding and controlling stake must be held by an SC/ST and/or a Woman entrepreneur.
- No Default: The borrower must not be in default to any bank or financial institution.
Step-by-Step Guide to Applying for the Stand-Up India Loan
The application process is designed to be streamlined, primarily channeled through the StandUp Mitra Portal managed by the Small Industries Development Bank of India (SIDBI).
Step 1: Online Registration on the StandUp Mitra Portal
The first and most important step is registering on the dedicated portal: www.standupmitra.in.
- Visit the Portal: Go to the official StandUp Mitra portal and click on the 'Register' button.
- Enter Details: Provide your full details, including the business location, mobile number, and email ID.
- Select Category: Select your category (SC, ST, or Woman) and confirm the percentage of your stake (must be 51% or higher in non-individual entities).
- Business Information: Enter details about the nature of the proposed business (manufacturing, services, etc.), the desired loan amount, and the premises details.
- Hand-Holding Need: The portal will ask a series of questions to determine if you require Hand-Holding Support (e.g., preparing a project report, training, or utility connections). Based on your answers, you will be categorized as a 'Ready Borrower' (needs no support) or a 'Trainee Borrower' (needs support).
- Complete Registration: Submit the registration form.
Step 2: Utilizing Hand-Holding Support (For Trainee Borrowers)
If categorized as a 'Trainee Borrower,' the portal serves as a bridge to connect you with relevant hand-holding agencies:
- Training & Mentoring: The portal connects you to the Lead District Manager (LDM) and allied agencies like NABARD/SIDBI/DICs for assistance in skill development, financial literacy training, and mentoring support.
- Project Report: Assistance is provided for preparing the detailed Project Report (DPR), especially crucial for loans above ₹25 Lakh.
Step 3: Formal Loan Application and Bank Selection
Once ready (either immediately as a 'Ready Borrower' or after receiving hand-holding as a 'Trainee Borrower'), you proceed to the formal application.
- Bank Linkage: The StandUp Mitra portal will link your profile to the bank branches (Scheduled Commercial Banks) located in your operating area.
- Application Generation: An application number will be generated, and you will be directed to initiate the loan application process with your selected financial institution.
- Submission: You can choose to apply through one of three routes:
- Online through the Portal (Recommended)
- Directly at the nearest Bank Branch
- Through the Lead District Manager (LDM)
Step 4: Bank Assessment and Documentation
The bank branch will officially process your application under the scheme guidelines.
- Document Submission: Submit the physical or digital application along with all mandatory documents (see below).
- Assessment: The bank will undertake CIBIL screening (to confirm no default history), an interview, and a physical visit to the proposed site (if required).
- Sanction & Disbursement: Upon successful assessment and sanctioning of the loan, the amount will be disbursed. For working capital up to ₹10 lakh, it is usually sanctioned via Overdraft (OD), and a RuPay debit card is issued for easy operation.
Checklist of Essential Documents
Ensure you have the following documents ready to expedite your loan application process:
A. Identity and Status Proof
- Proof of Identity: Voter's ID Card, Passport, Driving License, PAN Card (Mandatory), or Signature identification from current bankers.
- Proof of Residence: Recent Utility Bills (Electricity/Telephone), Passport, Voter's ID Card.
- SC/ST Status Proof: Valid Caste Certificate issued by the competent authority (if applying under the SC/ST category).
- Incorporation Certificate: Certificate of incorporation from the Registrar of Companies (ROC) or Partnership Deed (for non-individual enterprises).
B. Business and Financial Documents
- Project Report: A detailed Business Plan/Project Report (DPR) containing technical, financial, and economic viability details.
- Proof of Business Address: Lease/Rent Agreement (if premises are rented) or Title Deeds (if owned).
- Non-Default Proof: Evidence/Declaration that the applicant is not in default to any bank/financial institution.
- Projected Financials: Projected Balance Sheets for the next two years (for working capital) or for the loan period (for term loans).
- Property Documents: Photocopies of lease deeds/title deeds of all properties offered as primary or collateral security (if required by the bank).
- MSME/Udyam Registration: Udyam Registration Certificate (optional, but highly recommended).
