Stand-Up India is one of the most useful yet least understood credit schemes for first-generation founders. It gives Scheduled Caste, Scheduled Tribe, and women entrepreneurs access to bank loans between Rs 10 lakh and Rs 1 crore for setting up a new business - with the CGTMSE-style guarantee cover that keeps collateral requirements low. This guide covers exactly who qualifies, how the loan is structured, and the practical steps to a clean sanction.
Key takeaways
- 01
Confirm you meet the greenfield and ownership tests before you apply.
- 02
Understand the composite loan structure - term loan plus working capital in one.
- 03
Get the project report and margin money right to avoid the common rejections.
What Stand-Up India Actually Offers
Stand-Up India facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one Scheduled Caste or Scheduled Tribe borrower and at least one woman borrower per bank branch, for setting up a greenfield enterprise. The loan is a composite loan covering up to 85% of the total project cost - combining term loan and working capital in a single facility. It applies to enterprises in manufacturing, services, trading, and activities allied to agriculture. Repayment runs up to 7 years with a moratorium of up to 18 months.
Who Qualifies
Ownership: The borrower must be SC, ST, or a woman, aged 18 or above. For non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur.
Greenfield only: The scheme funds a new (greenfield) venture - your first unit in manufacturing, services, or trading. An existing running business seeking expansion does not qualify under this scheme.
Credit history: The applicant should not be in default with any bank or financial institution. A clean credit record materially improves sanction odds.
Project cost: Because the loan covers up to 85% of the project, the borrower brings a margin of at least 15% - which may be reduced when combined with eligible state or central subsidy schemes.
Stand-Up India vs CGTMSE: Which Fits You
| Factor | Stand-Up India | CGTMSE |
|---|---|---|
| Who it targets | SC/ST and women founders, greenfield units | Any eligible micro/small enterprise |
| Loan range | Rs 10 lakh to Rs 1 crore | Up to Rs 5 crore |
| Business stage | New venture only | New or existing |
| Loan type | Composite (term + working capital) | Term loan or working capital |
| Margin money | 15% (lower with subsidy) | Set by lender policy |
How to Apply, Step by Step
- 1
Check eligibility and prepare documents
Confirm the SC/ST or woman ownership test, keep Udyam registration, KYC, caste certificate (where relevant), and business proofs ready.
- 2
Build a bank-ready project report
Prepare a five-year financial model with DSCR, working-capital cycle, and a clear split between term-loan and working-capital needs. This single document decides most sanctions.
- 3
Apply via the portal or your bank
Register on the Stand-Up India portal (standupmitra.in) or approach a scheduled commercial bank branch directly. The portal can route you to handholding agencies.
- 4
Appraisal and sanction
The branch appraises the file, may seek CGTMSE-style guarantee cover, and issues a sanction letter with terms, rate, and repayment schedule.
The Mistakes That Stall Stand-Up India Sanctions
Treating it as an expansion loan: The scheme is greenfield-only. Applying to fund an existing running business is the most common reason for outright rejection.
A thin project report: Banks need a genuine feasibility model, not a one-page summary. Missing DSCR and sensitivity tables send the file back.
Ignoring state subsidy stacking: Many state schemes reduce your margin money or interest burden when combined with Stand-Up India. Applying without mapping these leaves money on the table.
Next step
Apply this to your business.
Confirm whether this applies to your legal structure, industry classification, and credit history - in under 30 minutes with an advisor.