Government Loan for SC/ST & Women Entrepreneurs – Stand-Up India Scheme Explained

What is the Stand-Up India Scheme?

The Stand-Up India Scheme is a flagship initiative by the Ministry of Finance, launched on 5th April 2016.The program provides bank loans between ₹10 lakhs and ₹1 crore to Scheduled Caste (SC), Scheduled Tribe (ST), and Women Entrepreneurs for setting up new (greenfield) enterprises. The scheme promotes financial inclusion, entrepreneurship, and job creation in manufacturing, trading, services, and allied agricultural sectors.

The Stand-Up Scheme is for ?

This scheme is specially designed for MSMEs and startups led by SC/ST and women entrepreneurs. It encourages self-employment and reduces dependency on traditional jobs by providing easy access to funding for setting up a business.

Benefits & Specialties

1. Loan Range: ₹10 Lakhs to ₹1 Crore for greenfield enterprises.
2. Composite Loan: Includes both term loan and working capital.
3. Rupay Debit Card: For convenient transactions.
4. Handholding Support: Provided through SIDBI’s portal (training, project report, mentoring, etc.).
5. Financial Inclusion: Promotes entrepreneurship among underrepresented groups.

Stand-Up India Scheme Available for States

The Stand-Up India Government Scheme is available across all Indian states and union territories, accessible through more than 1.25 lakh bank branches. Each branch must support at least one SC/ST borrower and one woman entrepreneur.

Budget of this Scheme

The government allocated ₹500 crore initially to SIDBI for credit guarantee coverage under this scheme. Additional funds are infused periodically to meet growing demand among MSMEs and startups.

How Many Businesses Got This Scheme Advantage?

As per the latest official reports, over 2 lakh entrepreneurs have benefitted from the Stand-Up India Scheme since its launch, with women constituting around 80% of total beneficiaries. This highlights the scheme’s impact in driving inclusive growth.

Eligibility Criteria

• Applicant must be SC/ST or a Woman Entrepreneur.
• Age: 18 years or above.
• The business must be a Greenfield Project (new enterprise).
• The applicant must not be a defaulter to any bank.

Application Process

You can apply through any of the following:

• Online:www.standupmitra.in
• Nearest Bank Branch: Visit your local branch.
• Lead District Manager (LDM): Contact details available on the portal.

Steps:

1. Visit the official Stand-Up India portal.
2. Fill in business details and category (SC/ST/Women).
3. Enter proposed business type, loan requirement, and experience.
4. Choose if handholding support is required.
5. Submit details and register to proceed with the loan process.

Documents Required

• Identity Proof (PAN, Voter ID, Passport).
• Residence Proof (Utility Bills, Property Tax, etc.).
• Business Address Proof.
• MSME Registration Certificate.
• Business Plan / Project Report.
• ITR and Balance Sheets.
• Partnership Deed or MOA (if applicable).
• Proof of SC/ST/Women Category.

StartupFlora – Your Scheme Guide for Business Growth

At StartupFlora, we guide entrepreneurs in applying for government schemes like Stand-Up India, PMEGP, and MUDRA loans. Our experts help with project reports, eligibility checks, and documentation ensuring your business idea turns into a successful enterprise.

Similar Schemes for Business

• PMEGP (Prime Minister’s Employment Generation Program)
• Pradhan Mantri Mudra Yojana (PMMY)
• Credit Guarantee Fund Scheme for MSMEs (CGTMSE)

Frequently Asked Questions (FAQs)

Q1. What is the loan amount under the Stand-Up India Scheme?

You can avail a composite loan between ₹10 lakhs and ₹1 crore.

Q2. What is the interest rate?

Interest rates vary as per bank guidelines, usuallylinked to MCLR + margin.

Q3. What is the repayment period?

Repayment tenure is up to 7 years, with a moratorium period of 18 months.

Q4. Which banks are eligible to provide loans?

All scheduled commercial banks (public and private) in India.

Q5. What is Hand-holding Support?

It includes assistance in training, project report preparation, and documentation through SIDBI’s portal.

Q6. What activities are covered under this scheme?

Manufacturing, trading, services, and allied agricultural activities.

Q7. What’s the difference between Stand-Up India and Start-Up India?

Stand-Up India focuses on funding SC/ST and Women Entrepreneurs, while Start-Up India promotes innovation-based startups with tax benefits and mentorship.

Conclusion:

The Stand-Up India Scheme is a major step toward empowering underrepresented communities in India’s entrepreneurial ecosystem. If you’re an SC/ST or a Woman Entrepreneur, StartupFlora can help you apply for this scheme and secure your business funding smoothly.