Stand-Up India Scheme 2025 – Loans for SC/ST & Women Entrepreneurs is designed for exactly that moment when you’re ready to start a business but stuck at the “who will give me that first big loan?” stage. If you’re an SC/ST or woman entrepreneur with a solid idea but no collateral or backing, this is the flagship scheme you should understand inside out.
This guide breaks down Stand-Up India in 2025 in plain language – how it works, who qualifies, how much you can actually get, and what you need to walk confidently into a bank instead of getting lost in government jargon.
Table of Contents
1. What Is the Stand-Up India Scheme (2025 Snapshot)?
Stand-Up India is a Central Government scheme that helps banks give loans from ₹10 lakh to ₹1 crore to:
At least one SC/ST borrower per bank branch, and
At least one woman borrower per bank branch
for setting up a greenfield enterprise (a first-time venture) in manufacturing, trading, services or allied agriculture activities.
The scheme was launched in 2016 and has been extended up to 2025.
Key points at a glance
Loan amount: ₹10 lakh – ₹1 crore
Who can apply: SC/ST and/or women entrepreneurs (age 18+)
Business type: New (greenfield) projects in manufacturing, trading, services, agri-allied
Loan type: Composite loan – term loan + working capital
Coverage: Up to 75% of project cost (rest is margin/own contribution)
Repayment: Up to 7 years, with moratorium up to 18 months
Security: Collateral or Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL / CGSSI) through NCGTC
2. Who Can Apply? (Eligibility Explained Simply)
2.1 Borrower Eligibility
You are eligible if:
You are:
SC (Scheduled Caste), or
ST (Scheduled Tribe), or
Woman entrepreneur (any category), and
You are 18 years or older, and
You want to set up a greenfield project (your first business in that sector).
For non-individual entities (like a company, LLP, partnership):
At least 51% shareholding and controlling stake must be held by SC/ST and/or woman entrepreneur(s).
You should also:
Not be a defaulter with any bank or financial institution.
2.2 Enterprise Eligibility – What is a “Greenfield” Project?
“Greenfield” here means your first venture in manufacturing, services, trading or agri-allied activities.
Examples that normally qualify:
A woman starting her first boutique or salon (never had one before)
An SC entrepreneur launching a packaged food manufacturing unit
An ST entrepreneur starting a small cold storage or agri-processing unit
What usually doesn’t qualify:
Expanding an existing shop into a bigger one in the same name
Taking over a running business from someone else, unless it is clearly structured as a new entity with new project definition
3. Loan Structure & Conditions (Money, Margin, Interest)
3.1 Loan Amount & Type
Loan size: ₹10 lakh to ₹1 crore per borrowing unit
Nature: Composite loan (both term loan + working capital)
Typically covers up to 75% of project cost; remaining 25% is margin (out of which you must bring minimum 10% yourself).
3.2 Margin Money & Own Contribution
Scheme allows margin up to 25%, often supported by convergence with other Central/State subsidy schemes.
But you must bring minimum 10% of project cost as your own contribution (equity).
So if project cost is ₹40 lakh:
Total project cost: ₹40 lakh
Bank loan (up to 75%): ₹30 lakh (Stand-Up India)
Margin: ₹10 lakh
At least ₹4 lakh must be from you
Balance ₹6 lakh may come from subsidy/another scheme (if available & approved)
3.3 Interest Rate
Interest is linked to the bank’s MCLR/base rate:
Interest cap: Not more than MCLR + 3% + tenor premium.
Actual rate will vary by:
Bank
Your risk rating
Collateral/guarantee coverage
3.4 Repayment Period & Moratorium
Maximum repayment tenure: up to 7 years
Moratorium, i.e. time when you pay only interest (no principal): up to 18 months depending on project.
3.5 Security & Credit Guarantee
Security can be:
Primary security: Assets created from the loan (machines, equipment, etc.)
Collateral: Property/other security, or
Coverage under Credit Guarantee Fund Scheme for Stand-Up India (CGFSIL/CGSSI), which provides collateral-free coverage for Stand-Up India loans between ₹10 lakh and ₹1 crore.
Each bank decides the exact security structure case-by-case.
4. How to Apply for Stand-Up India in 2025 (Step-by-Step)
You can usually access the scheme in three broad ways: directly at a bank branch, online via the Stand-Up India portal, or through facilitation/handholding agencies.
Step 1: Clarify Your Business Idea & Project Cost
Before going to a bank, be clear on:
What exactly you want to do (product/service, customers, location)
Rough project cost – land/lease, machinery, interiors, working capital, marketing, etc.
Whether it is truly a first-time (greenfield) project for you
Step 2: Prepare a Basic Project Report
Even a simple project report should include:
Business overview
Promoter profile (education, experience, category – SC/ST/woman)
Market overview & competitors
Project cost break-up
Means of finance (how much loan, how much own contribution, any subsidy)
Cash flow projections & repayment ability
Banks take you more seriously when you walk in with numbers, not just an idea.
Step 3: Check Basic Formalities
Make sure you:
Have KYC documents (Aadhaar, PAN, address proof)
Can show social category proof (SC/ST certificate, or for women – identity proof)
Are not a defaulter (your credit history should be clean)
If your business is already formed or in process:
Proprietorship / Partnership / LLP / Company documents
GST registration (if applicable)
Udyam registration highly recommended for MSME benefits
Step 4: Approach the Bank
You can:
Visit a scheduled commercial bank branch in your area and specifically mention you are seeking funding under Stand-Up India, or
Use the official online portal to fill your details and get connected/linked to a bank branch (the portal route typically forwards your lead to a chosen branch).
During the bank meeting:
Share your project report, estimates, and your own contribution proof
Clarify it is a greenfield project
Ask them clearly to evaluate under Stand-Up India, not just any standard MSME loan
Step 5: Handholding & Support (Optional but Useful)
Stand-Up India encourages handholding support – training, skill development, project report preparation, etc., often via SIDBI, DICs, or other agencies.
If you feel under-confident, look for:
Entrepreneurship Development Programmes (EDPs)
District Industries Centre (DIC) help
Local CA/consultant support for financials
Step 6: Sanction, Documentation & Disbursement
Once bank appraises your project:
They’ll issue a sanction letter with terms – amount, rate, security, repayment.
You’ll execute loan documents and provide collateral/guarantee coverage details.
Funds are disbursed in phases – machine payment, working capital, etc.
Keep all invoices and proofs – they’ll be needed for both bank records and future subsidy/benefit claims.
5. Documents Checklist (Practical View)
The exact checklist varies by bank, but usually includes:
Personal
Aadhaar, PAN
Address proof
Passport-size photographs
SC/ST certificate (as applicable)
For women: identity establishing gender and age
Business / Project
Project report
Quotations for machinery/equipment
Rent/lease deed or property documents (if premises decided)
Provisional approvals / NOCs, if any specific licence is required
Financial
Bank statements (last 6–12 months)
Income proof (ITR / salary slips / existing business statements, if any)
Details of own contribution source
Entity
Partnership deed / LLP agreement / MOA-AOA / Incorporation certificate (if non-individual)
Shareholding pattern showing 51%+ with SC/ST/Woman
6. Stand-Up India vs MUDRA vs Normal MSME Loans vs Start-up India
It’s easy to get confused among all the schemes, so think of them like this:
Stand-Up India
Loan: ₹10 lakh–₹1 crore
Target: SC/ST & women entrepreneurs
Focus: Greenfield enterprises via bank branches
MUDRA (Shishu / Kishore / Tarun)
Loan: Up to ₹10 lakh (micro loans)
Target: Micro units, small businesses of all categories
Many banks already give these under their usual schemes; Stand-Up India is for above ₹10 lakh.
Generic MSME Term Loans / Cash Credit
Not necessarily category-specific
Conditions depend on bank policy and your rating
No special guarantee fund dedicated to SC/ST/Women under that brand
Start-up India
Focus: Innovation, startups, DPIIT recognition, etc.
Benefits: tax breaks, easier compliance, mentoring, some credit guarantee support — but not the same branch-wise obligation as Stand-Up India.
7. Why Udyam Registration & MSME Documentation Matter
Even though Stand-Up India focuses on SC/ST & women, most of these projects are also MSMEs in terms of turnover and investment.
Having:
Udyam registration
Basic GST (if applicable)
Proper invoices and compliance
helps you:
Look more credible in front of the bank manager
Become eligible for other MSME subsidies which can be converged to meet margin money requirements
Get easier access to future schemes for technology upgradation, interest subsidies, etc.
“If you’re an SC/ST or woman entrepreneur planning to apply under Stand-Up India, make Udyam registration and documentation your first step. It strengthens your application and opens doors to state and central subsidies you can combine with this loan.”
8. Common Reasons for Rejection – And How to Avoid Them
Banks rarely say “no” without a reason. Typical issues:
Weak or unclear project report
No proper costings, unrealistic sales, vague customers.
Fix: Use realistic assumptions, show local market research, get help from a CA/consultant if needed.
No clear own contribution
You say you have 10–15% but can’t show where it’s coming from.
Fix: Keep clear bank trail for your contribution – savings, family support, etc.
Credit history problems
Existing unpaid loans, bounced EMIs, or earlier write-offs.
Fix: Clean small dues, settle disputes, and be transparent with the bank.
Not truly greenfield
You’re basically expanding an existing business but trying to show it as new.
Fix: If you already run something, discuss with bank honestly; they may suggest a different MSME product.
Insufficient security / documentation
Especially when credit guarantee coverage doesn’t fully comfort the bank.
Fix: Clarify the CGFSIL guarantee, offer additional comfort if possible, and keep documentation neat.
9. Realistic Use Cases (Where Stand-Up India Fits Well)
Typical profiles that fit Stand-Up India logic:
A woman setting up a mid-sized beauty clinic / wellness centre with interiors, equipment, and 6–8 staff
An SC entrepreneur starting a rice/pulse processing unit with machinery, small warehouse, and working capital for raw material
A woman launching a small diagnostic lab or pathology centre in a tier-2 city
An ST entrepreneur starting a cold storage or grading/sorting unit for fruits & vegetables for farmers in his/her area
All of these usually need ₹15–60 lakh, which is exactly the Stand-Up India sweet spot.
10. FAQs – Stand-Up India Scheme 2025
Q1. Is Stand-Up India still valid in 2025?
Yes. The scheme launched in 2016 has been extended up to 2025.
Q2. Can two women from the same family both get Stand-Up India loans from the same branch?
Each branch must give at least one loan to an SC/ST and at least one to a woman. More loans are possible if the bank branch chooses, but that’s at their discretion.
Q3. Can I get a Stand-Up India loan for an online business (e-commerce, services, etc.)?
Yes, as long as it qualifies as a greenfield enterprise in trading/services and you can justify project cost, revenue model, and working capital needs.
Q4. Do I have to give property as collateral?
Not always. Many Stand-Up India loans are backed through the Credit Guarantee Fund Scheme for Stand-Up India (CGFSIL/CGSSI), which allows collateral-free or lower-collateral lending, subject to bank comfort.
Q5. Can Stand-Up India be combined with subsidies or state schemes?
Yes. The scheme is designed so that margin money can be supported through convergence with eligible Central/State schemes. The borrower must still bring at least 10% own contribution.
Need help turning Stand-Up India from “scheme” to “sanctioned loan”?
On Eudyamaadhar, we break down government schemes in plain language and help you get the basics in place – Udyam registration, documentation and clarity on which loan or subsidy fits your business.
If you’re an SC/ST or woman entrepreneur planning to apply under Stand-Up India, start by getting your MSME groundwork and paperwork right with Eudyamaadhar, so your bank meeting is about approval – not confusion.