Stand-Up India Scheme 2026: Eligibility, Loan, Benefits & Apply
The Stand-Up India Scheme is one of the flagship entrepreneurship financing initiatives of the Government of India. It was launched on 5 April 2016 to encourage entrepreneurship among Women, Scheduled Castes (SC), and Scheduled Tribes (ST) by providing bank loans for establishing new businesses. The scheme is implemented through all Scheduled Commercial Banks across India.
Table of Contents
- What is the Stand-Up India Scheme?
- Objectives
- Key Features
- Eligibility Criteria
- Eligible Business Sectors
- Loan Amount
- Margin Money
- Interest Rate
- Repayment Period
- Collateral & Credit Guarantee
- Documents Required
- Application Process
- Eligible Business Activities
- Benefits
- Reasons for Loan Rejection
- Frequently Asked Questions
- Why KP Medicare Solutions Can Benefit
What is the Stand-Up India Scheme?
The Stand-Up India Scheme facilitates bank loans from ₹10 lakh to ₹1 crore for eligible entrepreneurs to establish greenfield (new) enterprises in manufacturing, services, trading, or agriculture-allied activities. The objective is to promote self-employment, job creation, and financial inclusion.
Objectives of the Scheme
The scheme aims to:
- Promote entrepreneurship among women and SC/ST communities.
- Encourage first-generation entrepreneurs.
- Generate employment opportunities.
- Support new manufacturing and service businesses.
- Increase financial inclusion through bank credit.
- Strengthen India’s MSME ecosystem.
Key Features
| Particular | Details |
|---|---|
| Scheme Name | Stand-Up India |
| Launch Date | 5 April 2016 |
| Loan Amount | ₹10 lakh – ₹1 crore |
| Implemented By | Scheduled Commercial Banks |
| Eligible Applicants | Women, SC & ST entrepreneurs |
| Business Type | Greenfield enterprises |
| Sectors | Manufacturing, Services, Trading, Agriculture-allied |
| Repayment | Up to 7 years |
| Moratorium | Up to 18 months |
Eligibility Criteria
Applicants must satisfy the following:
Individual Applicants
- Woman entrepreneur or
- Scheduled Caste (SC) entrepreneur or
- Scheduled Tribe (ST) entrepreneur
- Minimum age: 18 years
- Must not be a wilful defaulter.
For Companies / LLPs / Partnership Firms
At least 51% ownership and controlling stake must be held by:
- Women, or
- SC/ST entrepreneurs.
What is a Greenfield Enterprise?
A Greenfield Enterprise means:
- Starting a new business in manufacturing, services, trading, or agriculture-allied activities.
- It is generally intended for a first-time venture in that line of business, not simply financing an existing business expansion. Banks evaluate this during appraisal.
Eligible Business Sectors
Manufacturing
- Medical equipment manufacturing
- Surgical instruments
- Pharmaceutical products
- Furniture
- Food processing
- Engineering products
- Textile manufacturing
Services
- Hospitals
- Diagnostic laboratories
- Medical consultancy
- IT companies
- Software development
- Digital marketing
- Healthcare consultancy
- Logistics
Trading
- Medical equipment dealership
- Surgical product distribution
- Industrial machinery
- Electrical goods
- Hospital consumables
- Wholesale trading
Agriculture-Allied
- Dairy
- Poultry
- Fisheries
- Food processing
- Organic farming
Loan Amount
The scheme provides a composite loan (term loan plus working capital):
| Minimum | Maximum |
|---|---|
| ₹10 lakh | ₹1 crore |
Margin Money
- Borrower contribution: Minimum 10% of the project cost.
- Margin support up to 15% may be available through convergence with eligible Central/State Government schemes, subject to scheme rules.
Interest Rate
The interest rate is not fixed by the Government. It is decided by the lending bank as per scheme guidelines and the applicant’s credit profile. Always confirm the applicable rate with the bank before applying.
Repayment Period
| Feature | Details |
|---|---|
| Maximum Repayment | Up to 7 years |
| Moratorium | Up to 18 months |
Collateral and Credit Guarantee
Banks may secure loans under the Credit Guarantee Fund for Stand-Up India (CGFSI), which can reduce collateral requirements in eligible cases. However, this does not mean every loan is automatically collateral-free—the final decision depends on the bank’s appraisal and lending policy.
Documents Required
Typically required documents include:
- Aadhaar Card
- PAN Card
- Passport-size photographs
- Address proof
- Business registration (if applicable)
- GST Registration (if applicable)
- UDYAM Registration (recommended)
- Project Report (DPR)
- Machinery or equipment quotations (if applicable)
- Bank statements
- Income Tax Returns (if available)
- Financial statements (if applicable)
- Partnership Deed / LLP Agreement / Incorporation Certificate (where applicable)
How to Apply
Offline
- Visit a Scheduled Commercial Bank.
- Meet the MSME or loan officer.
- Submit your project report and documents.
- Complete KYC and bank appraisal.
- Loan sanction and disbursement (subject to approval).
Online
You can apply through:
The Stand-Up Mitra portal also provides handholding support, training guidance, and assistance with loan applications.
Businesses Suitable Under the Scheme
Examples include:
- Medical equipment distribution
- Hospital furniture
- Surgical products
- Laboratory equipment
- Pharmacy
- Healthcare consultancy
- IT services
- Digital marketing agency
- Food processing
- Manufacturing units
- Wholesale trading
- Industrial supplies
Major Benefits
- Loan support up to ₹1 crore
- Long repayment period
- Moratorium period
- Support for women and SC/ST entrepreneurs
- Financing for both fixed assets and working capital
- Entrepreneurship support through Stand-Up Mitra
Common Reasons for Rejection
Banks may reject an application due to:
- Weak project report
- Insufficient own contribution
- Poor credit history
- Business not meeting greenfield requirements
- Inadequate documentation
- Unsatisfactory repayment capacity
- Existing loan defaults
Frequently Asked Questions
Can a proprietorship apply?
Yes, if the proprietor is an eligible woman or SC/ST entrepreneur and all scheme conditions are met.
Can an LLP apply?
Yes. The LLP can apply if 51% ownership and controlling stake is with eligible women or SC/ST partners.
Can an existing business get this loan?
The scheme is intended for greenfield enterprises, so banks assess whether the proposal qualifies as a new eligible venture rather than a simple expansion of an existing business.
Is GST mandatory?
Not in every case, but GST registration is generally required if your business falls under GST registration requirements.
- Stand-Up India Loan
- Women Entrepreneur Loan
- SC ST Business Loan
- Business Loan Government Scheme
- MSME Business Loan
- Greenfield Enterprise Loan
- Stand-Up India Eligibility
- Stand-Up India Documents
- Stand-Up India Online Apply
- Startup Loan India
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