Stand Up India
Stand Up India Scheme
Stand Up India is a targeted credit access scheme launched on 5 April 2016. It addresses the specific credit gap faced by SC/ST communities and women in accessing institutional finance for entrepreneurship — a gap that exists despite decades of financial inclusion efforts.
**The Core Mandate:**
Every scheduled commercial bank branch must facilitate at least ONE loan to an SC/ST borrower AND at least ONE loan to a woman borrower under Stand Up India. This institutional mandate — not just a scheme — ensures that bank branches actively seek and develop these borrowers, not just passively wait for applications.
**Who is "Greenfield"?**
Greenfield means: first enterprise in that particular sector for the beneficiary. A woman who already runs a tailoring shop cannot take Stand Up India loan to open another tailoring business. She can use it for a new, different enterprise — say, a food processing unit. SC/ST borrowers must similarly be first-time in that sector.
**The ₹10 Lakh–₹1 Crore Range:**
Stand Up India specifically targets the ₹10 lakh–₹1 crore "missing middle" — too large for Mudra Shishu/Kishor, too small or unproven for regular commercial loans. The composite loan can include:
- Term loan (for equipment, infrastructure): 75% of project cost
- Working capital (cash credit): remaining 25% or ₹10 lakh, whichever is lower
**Repayment:**
7-year repayment with 18-month moratorium — one of the most borrower-friendly repayment structures in government credit schemes.
**CGTMSE Guarantee:**
Stand Up India loans are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) — meaning NO collateral security is required for MSE borrowers (only third-party guarantee/personal guarantee may be asked). The government pays the guarantee fee.
**StandUpMitra Portal:**
standupmitra.in is a dedicated portal for Stand Up India — find handholding agencies, apply for loans, track application status, find DIC mentors and SIDBI support.
Key Objectives
- Promote SC/ST and women entrepreneurship through access to bank credit of ₹10 lakh–₹1 crore.
- Create at least 2.5 lakh greenfield enterprises by SC/ST and women entrepreneurs.
- Ensure every bank branch becomes a Stand Up India compliant branch (1 SC/ST + 1 Woman loan).
- Support SC/ST and women entrepreneurs with handholding (SIDBI, DICs, NABARD).
Benefits
Eligibility
- SC (Scheduled Caste) entrepreneur — any gender
- ST (Scheduled Tribe) entrepreneur — any gender
- Women entrepreneur — any caste
- Must be above 18 years of age
- Greenfield enterprise only — first time in that sector
- Not a defaulter to any bank or financial institution
- For non-individual enterprises: 51% shareholding and controlling stake must be with SC/ST or woman
- Composite loan: 75% project cost as term loan + up to 25% or ₹10 lakh as working capital
- Non-SC/ST male entrepreneurs
- Existing enterprises (must be greenfield — new in that sector)
- Loan borrowers with existing NPA with any bank
- Enterprises where SC/ST/Woman is not the majority owner and controller
How to Apply
Step 1: Visit standupmitra.in → Apply for Loan OR visit any scheduled commercial bank branch
Step 2: Request Stand Up India loan — bank must have a dedicated nodal officer
Step 3: Submit application with business plan, caste/gender proof, project cost estimate
Step 4: Bank appraises project — may refer to SIDBI/DIC/NABARD for handholding support
Step 5: CGTMSE guarantee obtained by bank (no cost to borrower)
Step 6: Loan sanctioned and disbursed — composite (term + working capital)
Step 7: Repayment starts after 18-month moratorium
Required Documents
Frequently Asked Questions
What is a 'greenfield enterprise' under Stand Up India?
A greenfield enterprise is a brand new enterprise that the applicant is setting up for the first time in that particular sector. Example: an SC applicant who has never run a business before setting up a manufacturing unit = greenfield. An ST applicant who runs a farming operation setting up a food processing unit = greenfield (different sector). A woman who already runs a tailoring business and wants another tailoring shop = NOT greenfield. A woman starting a dairy business despite having a tailoring shop = greenfield (different sector).
Can a woman of any caste apply for Stand Up India?
Yes. Stand Up India is available to all women irrespective of caste — general, OBC, SC, ST, or any category. The woman must be above 18 years, setting up a greenfield enterprise, and not a bank defaulter. There is no income ceiling either. For women from SC/ST background, they qualify under BOTH the SC/ST category and the women category.
What is the interest rate for Stand Up India loans?
There is no fixed mandated interest rate for Stand Up India. Banks charge their base rate (MCLR) plus a spread — typically 7.5%–12% per annum depending on the bank and borrower's profile. The rate should not exceed the bank's lowest rate for that category of borrower. As per RBI guidelines, banks must not discriminate on interest rates for Stand Up India vs similarly-sized regular loans.
The bank is refusing my Stand Up India application. What should I do?
Every scheduled commercial bank branch is MANDATED to have at least 1 SC/ST Stand Up India loan and 1 Woman Stand Up India loan. Unjustified refusals are a compliance violation. Steps: (1) Request a written rejection reason from the bank; (2) Contact the bank's Lead District Manager (LDM) — phone number available on RBI's website; (3) File a complaint on standupmitra.in → Complaint; (4) Approach RBI's Banking Ombudsman if LDM doesn't resolve in 30 days.