Stand-Up India: how SC/ST and women entrepreneurs can get loans up to ₹1 crore

Entrepreneurs from Scheduled Caste, Scheduled Tribe and women backgrounds now have a direct route to bank financing for a new business, through the Ministry of Finance’s Stand-Up India scheme. The scheme requires every bank branch to facilitate a loan for at least one SC or ST borrower and at least one woman borrower, aimed at setting up a greenfield enterprise in manufacturing, services, trading, or an activity allied to agriculture. Loans range between ₹10 lakh and ₹1 crore, covering up to 85% of the project cost as a composite loan that includes both a term loan and working capital.

To qualify, applicants must be at least 18 years old and must not be in default to any bank or financial institution. Male applicants must belong to the SC or ST category, while women applicants can apply regardless of caste. For non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an SC, ST, or woman entrepreneur. The scheme is meant strictly for new, ‘greenfield’ ventures rather than expansions of existing businesses.

Applying is straightforward and can be done in more than one way. Entrepreneurs can approach their nearest bank branch directly, reach out to the Lead District Manager (LDM) of their district, or register online through the official portal at standupmitra.in. The online process involves entering business location details, selecting the applicant’s category (SC, ST, or woman) and shareholding stake, describing the proposed business and loan amount required, and filling in past business experience before submitting the registration. Once registered, applicants become eligible to initiate the loan process with a financial institution, which then contacts them to complete the remaining formalities.

Applicants need to keep a set of documents ready, including proof of identity such as a voter ID, passport, driving licence or PAN card, proof of residence like a recent utility bill, proof of business address, and confirmation that the applicant is not a defaulter with any bank. Additional paperwork includes the memorandum and articles of association or partnership deed where applicable, an assets and liabilities statement with the latest income tax returns, and documents establishing SC/ST category status where relevant. For loan exposure above ₹25 lakh, applicants must also submit a detailed project report and a profile of the business unit.

Beyond the loan itself, the scheme also provides hand-holding support through a web portal run by the Small Industries Development Bank of India (SIDBI), connecting entrepreneurs with agencies for training, skill development, mentoring, project report preparation and application filing. A Rupay debit card is issued to borrowers for convenience. Repayment is structured over 7 years, with a maximum moratorium period of 18 months before repayments begin.

Stand-Up India is administered by the Ministry of Finance, Government of India, and loans are available through all branches of Scheduled Commercial Banks across the country. Source: myscheme.gov.in

Photo: Wikimedia Commons/by Pinakpani