Stand-Up India Project Report — SC/ST & Women Loans up to ₹1 Crore

Stand-Up India is a Government of India scheme launched in 2016 by the Ministry of Finance. It facilitates bank loans of ₹10 Lakhs to ₹1 Crore to SC/ST and Women entrepreneurs for setting up greenfield (first-time) enterprises in manufacturing, services, or trading sectors. The scheme is implemented through all Scheduled Commercial Banks across India and targets at least one SC/ST borrower and one woman borrower per bank branch. SIDBI is the nodal agency. Applications can be made through standupmitra.in or directly at any scheduled commercial bank branch.

No. Stand-Up India is exclusively for SC (Scheduled Caste), ST (Scheduled Tribe), and Women entrepreneurs. OBC applicants are NOT eligible under this scheme, regardless of economic status or income level. However, OBC applicants have other strong alternatives: PMEGP (25–35% capital subsidy on new enterprises), MUDRA Loan (collateral-free loans up to ₹10 Lakhs), and for larger amounts, CGTMSE-backed MSME loans from any bank. MudraReady can generate project reports for all these schemes.

A greenfield enterprise is a completely new, first-time venture being set up by the applicant. The promoter must not already own or operate another business enterprise — whether formal or informal, registered or unregistered. If you are currently running any shop, factory, service firm, or any commercial activity, you are NOT eligible for Stand-Up India, even if that existing business is very small. The bank verifies greenfield status through ROC records, CIBIL commercial credit report, and ITR history. One exception: if you were only an employee (not owner) in another business, you remain eligible.

Yes. A salaried person — whether in government service, public sector, or private employment — can apply for Stand-Up India as long as they belong to the eligible category (SC/ST or Women) and the proposed enterprise is genuinely new (greenfield). Their current salary employment does not disqualify them. In fact, a steady salary income strengthens the application by demonstrating personal financial stability and repayment capacity during the moratorium period. They must, however, show the 15% margin contribution from personal savings, which salaried applicants typically have.

A minimum of 15% of the total project cost must come from the applicant's own sources. Example: If your project cost is ₹50 Lakhs, you must contribute at least ₹7.5 Lakhs from your own funds (savings, FDs, or personal assets). The bank will then provide the remaining 85% as the composite loan (up to ₹1 Crore). Government subsidies or grants from state-specific schemes (like NABARD grants, state margin money schemes available in UP, Maharashtra, Tamil Nadu, etc.) may be counted toward this 15% requirement — confirm with your bank or standupmitra.in helpline.

The moratorium period of up to 18 months means you do NOT need to repay the term loan principal for the first 18 months after disbursement. During this moratorium, you only pay the interest charged on the outstanding term loan balance — no EMI. This is critical for greenfield businesses that need time to set up, commence operations, and start generating revenue before debt servicing begins. After 18 months, the principal repayment starts, and remaining tenure continues up to the overall 7-year limit. Note: Interest accrues from Day 1 of disbursement — even during moratorium. The CC (working capital) limit has no moratorium — interest on utilised CC is payable monthly.

Yes. Stand-Up India loans can optionally be covered under CGFSIL — Credit Guarantee Fund Scheme for Stand-Up India Loans — which functions similarly to CGTMSE. CGFSIL provides guarantee coverage on the loan amount, giving the bank comfort to sanction without requiring additional collateral from you. For loans above ₹50 Lakhs, some banks also combine CGTMSE with Stand-Up India for enhanced coverage. The guarantee fee is typically 0.75%–1% p.a. of the outstanding loan amount, payable by the borrower. This is advisable if you have limited personal assets to pledge as collateral.

The interest rate is NOT fixed under the scheme. It is calculated as: MCLR (Marginal Cost of Funds based Lending Rate of the specific bank) + 3% per annum + Tenor Premium. Each bank sets its own MCLR, which changes periodically based on RBI policy. As of 2025–26, effective interest rates for Stand-Up India loans range from approximately 10.5% to 13% per annum at Public Sector Banks. The rate is applied on the composite loan amount. Interest is charged on the outstanding balance from the date of disbursement — including during the moratorium period for the term loan portion. The CC (working capital) interest is charged on the daily utilised amount.