Introduction
Stand Up India Scheme was launched in April 2016 to promote entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and women entrepreneurs. The scheme facilitates bank loans between ₹10 lakh and ₹1 crore for setting up greenfield enterprises in manufacturing, services, or trading sectors. This article explains the eligibility, loan terms, and step-by-step application process.
Loan Features
| Parameter | Details |
|---|---|
| Loan Amount | ₹10 lakh to ₹1 crore |
| Target Borrowers | SC/ST and women entrepreneurs |
| Margin Money | 10% — lowest among all government loan schemes |
| Repayment Period | Up to 7 years including moratorium |
| Interest Rate | As per RBI guidelines (usually 8-12%) |
Who can apply for Stand Up India loan?
SC/ST borrowers and women entrepreneurs above 18 years of age are eligible. The applicant should have a viable business project in manufacturing, services, or trading sector. Greenfield projects (new enterprises) are preferred over expansion of existing businesses.
Can one borrower get multiple Stand Up India loans?
No, each borrower can avail only one loan under this scheme. However, multiple members of the same family can apply individually for their own separate enterprises. The loan is limited to one per borrower across all banks.
Is there any subsidy on the interest rate?
The scheme does not provide direct interest subsidy. However, loans are offered at competitive rates as per RBI guidelines. Some banks offer a 0.5% concession for women borrowers under their internal policies.
How do I apply for Stand Up India loan?
You can apply through the Stand Up India portal (standupmitra.in) which connects you to various banks. You need to submit your business plan, KYC documents, project cost estimate, and financial projections. The portal tracks your application status in real time.