Stand Up India Loan Scheme 2025: Apply Online, Eligibility, Interest Rate

The Indian government has been supporting its citizens in starting new businesses through various schemes and programs. One such initiative is the Stand-Up India Scheme, which aims to empower marginalized groups, including women, Scheduled Castes (SC), and Scheduled Tribes (ST). Over the past seven years, the Stand-Up India Scheme has disbursed over Rs. 40,700 crore to more than 1,80,630 beneficiaries. Below is the detailed information regarding the Stand-Up India Loan Scheme.

Stand Up India Loan Scheme 2025

The Stand-Up India Loan Scheme, launched by the Department of Financial Services (DFS) under the Ministry of Finance, Government of India, is aimed at promoting entrepreneurship among women and members of the Scheduled Castes (SC) and Scheduled Tribes (ST). The Small Industries Development Bank of India (SIDBI) acts as the nodal agency for the scheme's implementation. This scheme is open to various sectors, including trading, industrial, and service-related activities, as well as agricultural ventures. Eligible businesses can take the form of a cooperative society, partnership, firm, or sole proprietorship.

Under the Stand-Up India Scheme, eligible borrowers can obtain bank loans ranging from Rs. 10 lakh to Rs. 1 crore to establish greenfield businesses. The scheme is limited to one loan per bank branch for either a woman entrepreneur or a member of the SC/ST community. In the case of non-individual firms, at least 51% of the shares and controlling interest must be held by either a woman borrower or a member of the SC/ST community.

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Stand Up India Loan Scheme Details in Highlights

Stand Up India Loan Scheme Objectives

The Stand-Up India Loan Scheme is a government initiative designed to promote entrepreneurship among women and members of the Scheduled Caste (SC) and Scheduled Tribe (ST) communities in India. Launched by Prime Minister Narendra Modi on April 5, 2016, the scheme aims to provide financial support to these groups by ensuring that at least one SC/ST borrower and one woman borrower per bank branch receives a loan for setting up greenfield enterprises. Loans ranging from Rs. 10 lakh to Rs. 1 crore are made available to help these entrepreneurs establish their businesses. In addition to financial assistance, the program offers valuable support, including training, mentoring, and guidance through the Stand-Up India Portal, an online platform created to assist aspiring business owners.

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Features & Benefits of Stand Up India Loan Scheme

The Stand-Up India Loan Scheme offers several key features and benefits designed to assist entrepreneurs from women and SC/ST communities in establishing their businesses:

• Project Funding: The scheme covers up to 75% of the total project cost, making it more accessible for entrepreneurs to start their businesses.
• Composite Loan: It offers both term loans and working capital loans as part of the same financial package, giving entrepreneurs comprehensive support.
• Competitive Interest Rates: The interest rate for loans is guaranteed to be the lowest available in that category, calculated as (base rate * MCLR + 3% + tenor premium), ensuring affordability.
• Flexible Repayment Terms: The loan repayment period extends up to 7 years, with a grace period of up to 18 months, offering flexibility for the borrowers to manage their finances.
• Collateral Options: In addition to the principal security, borrowers can use collateral or avail of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as a guarantee, depending on the lender’s requirements.
• Overdraft Facility for Smaller Loans: Loans up to Rs. 10 lakh are approved through an overdraft, with a RuPay debit card provided for easy access to funds.
• Cash Credit Limit for Larger Loans: Loans exceeding Rs. 10 lakh are approved as a cash credit limit, giving greater flexibility in managing larger business expenses.

Interest Rates for Stand-Up Loans in India

The interest rates for loans under the Stand-Up India scheme are determined by the participating banks based on their internal policies. However, the interest rate cannot exceed the bank’s lowest applicable rate for the specific category, which is calculated as (MCLR + 3% + tenure premium). Several factors such as the borrower’s credit rating, risk profile, collateral security, and other variables may influence the final interest rate. As of September 21, 2023, the average interest rate for loans approved under the Stand-Up India programme was 9.67%, according to information available on the Stand-Up India Portal.

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List of Bank’s under Stand Up India Loan Scheme

The List of Bank’s that offer loans under the Stand Up India Loan Scheme is given in the table below:

Eligibility Criteria for Stand Up India Loan Scheme

The eligibility criteria for the Stand-Up India Loan Scheme are as follows:

• Target Groups: The scheme is exclusively available to women entrepreneurs and individuals from Scheduled Caste (SC) and Scheduled Tribe (ST) communities.
• Age Requirement: The applicant must be at least 18 years of age.
• Greenfield Projects: The loan is only available for greenfield projects, meaning businesses that are being established from scratch and not for expansion or diversification of an existing business.
• Ownership Requirement: Women entrepreneurs or members of SC/ST communities must own at least 51% of the shares and controlling holdings in the company.
• Non-Individual Applicants: Applications can also be submitted by non-individual entities, such as existing businesses or firms, provided they meet the eligibility criteria.
• Default Status: The borrower should not have any history of default with any bank or financial institution.

Required Documents

Some of the important documents required for the Stand Up India Loan Scheme are as follows:

• Application form with Passport-sized photographs
• Identity Proof like a Passport, voter’s ID card, PAN card, driving license,  etc.
• Address Proof like Voter’s ID card, latest electricity bill,  passport, telephone bills, etc.
• Address proof of Business
• Partnership deed
• Lease deeds or Rent agreement
• Association’s Last 3 years’ balance sheets
• Promoters and Guarantors Assets and liabilities statement

Process to Register for Stand Up India Loan Scheme 2025

To register for the Stand-Up India Loan Scheme in 2025, follow these steps:

• Visit the Official Website: Go to the official Stand-Up India website.
• Open the Homepage: The homepage of the website will open upon clicking the link.
• Click on the Register Button: Find and click the "Register" button on the homepage.
• Fill in the Registration Form: The registration form will appear. Enter all required details such as state, district, business address, village, city, town, and pin code.
• Select Promoter Details: Choose whether the promoter is a woman and holds 51% or more interest in the business, or if the promoter belongs to the SC/ST community.
• Business Details: Select the nature of the planned business, a description of the business activity, desired loan amount, and status of the space for the business.
• Business Experience: Provide details of past business experience, including business activity, years of experience, and the nature of the business.
• Handholding Support: Select the desired handholding support based on your needs and preferences.
• Personal Details: Enter your personal information, such as your name, enterprise name, username, mobile number, email ID, and constitution type.
• Complete Registration: After filling in all the details, click the "Register" button to complete the registration process.
• Further Contact: After successful registration, the concerned officials will contact you for further formalities.

Summary of Stand Up India Loan Scheme 2025

The Stand-Up India Loan Scheme 2025 supports women, SC, and ST entrepreneurs by providing loans between Rs. 10 lakh to Rs. 1 crore for greenfield projects. The scheme offers flexible terms, including a repayment tenure of up to 7 years and an interest rate of MCLR + 3%. Eligible applicants can receive financial assistance for various business ventures.