Stand-Up India Scheme 2026 — Bank Loan Up to ₹1 Crore for SC/ST and Women Entrepreneurs
Here is a fact that most people do not know.
Every single bank branch in India — from SBI to Canara Bank, from Bank of Baroda to Punjab National Bank — is officially required to sanction at least one loan to a Scheduled Caste or Scheduled Tribe borrower and at least one loan to a woman borrower every year under the Stand-Up India Scheme.
This is not a guideline. It is a mandate.
If you belong to the SC, ST, or women category and want to start a new business, there is a government scheme that ensures the bank cannot turn you away simply because of your background. The Stand-Up India Scheme was launched on April 5, 2016, and as of 2026, it has sanctioned over ₹61,000 crore worth of loans to more than 1.8 lakh entrepreneurs.
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What is Stand-Up India?
The Stand-Up India Scheme is a Government of India initiative implemented through all Scheduled Commercial Banks and monitored by SIDBI. It provides composite bank loans — combining both a term loan and working capital — between ₹10 lakh and ₹1 crore to eligible SC/ST and women entrepreneurs for setting up a new enterprise.
The key word here is new. This scheme is specifically for greenfield projects — meaning businesses that are being started for the very first time in manufacturing, services, or trading.
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Who is Eligible?
The eligibility criteria are clear and straightforward:
- The applicant must be a Scheduled Caste (SC), Scheduled Tribe (ST), or a woman entrepreneur
- Minimum age: 18 years
- The business must be a greenfield project — it must be the applicant's first-ever venture in that sector
- The business must be in manufacturing, services, or trading — agriculture-allied activities are also covered
- For non-individual enterprises (companies, partnerships): at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur
- The applicant must not be a defaulter with any bank or financial institution
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Loan Structure
One feature that makes Stand-Up India different from most schemes is the composite loan structure. The loan covers both your fixed investment and your working capital needs in a single facility.
Loan range: ₹10 lakh to ₹1 crore
The loan amount is calculated as 75% to 85% of the total project cost. The remaining 15% to 25% is your margin money — your own contribution. In some cases, convergence with government subsidies like PMEGP can help cover part of the margin.
Repayment period: Up to 7 years, with a moratorium period of up to 18 months. This means you get time to establish the business before EMI payments begin.
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Interest Rate
The interest rate under Stand-Up India is the lowest applicable rate for the bank for that loan category. As a formula: Base Rate (or MCLR) plus 3%, plus any applicable tenor premium.
While this is not a subsidised interest rate like PMEGP, the advantage is access to a larger loan amount — up to ₹1 crore — which most other schemes for first-time entrepreneurs do not offer.
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Documents Required
- Identity proof: Aadhaar, PAN, Voter ID
- Address proof
- Caste certificate (for SC/ST applicants) or gender proof (for women applicants)
- Land documents or lease agreement for the business premises
- Business plan or project report clearly explaining the nature of business, cost, and income projections
- Quotations for machinery and equipment
- Partnership deed, MOA, or company incorporation documents (if applicable)
- Bank statement
- Photographs
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How to Apply — Three Ways
Method 1 — Direct Bank Visit
Walk into any scheduled commercial bank branch near you. Inform the branch manager that you want to apply under the Stand-Up India Scheme. The branch is mandated to entertain your application. They will guide you through the process.
Method 2 — Stand-Up Mitra Portal
Visit standupmitra.in — SIDBI's official portal for the scheme. Register yourself, fill in your location, category, business type, and loan requirement. The portal also connects you with mentoring and handholding support.
Method 3 — Lead District Manager (LDM)
Every district has a Lead District Manager who coordinates all bank credit programmes. If you face difficulty at a bank branch, contacting the LDM is an effective escalation route.
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Important Practical Points
First — the 51% rule matters. If you are setting up a company or partnership under this scheme, ensure the legal documents clearly reflect that SC/ST or a woman holds the majority controlling stake. Banks will check this during appraisal.
Second — a business plan is not optional. Even though the bank is mandated to entertain your application, a proper project report showing viability and repayment capacity is essential for actual sanction.
Third — this scheme is for new businesses only. If you already run a business and want to expand it, Stand-Up India does not apply. Look at Mudra Tarun or MSME term loans instead.
Fourth — a RuPay debit card is issued along with the working capital component, allowing flexible fund access without multiple withdrawals.
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What Sectors Can You Start?
The scheme covers any manufacturing, services, or trading activity. Some practical examples of businesses started under this scheme:
- Small food processing units
- Garment manufacturing
- Computer repair and IT services
- Beauty parlour or salon
- Dairy or poultry unit (agriculture-allied)
- Building materials trading
- Transport or logistics service
- Handicraft or handloom production unit
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Summary
- Loan amount: ₹10 lakh to ₹1 crore, composite term loan and working capital
- Who qualifies: SC/ST and women entrepreneurs above 18 years starting a new business
- Margin money: 15% to 25% of project cost
- Repayment: up to 7 years with 18-month moratorium
- Apply at: standupmitra.in or any scheduled commercial bank branch
- Key condition: Greenfield project only — must be the first venture in that sector
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*Disclaimer: Loan terms, interest rates, and sanction decisions are subject to the bank's credit policy and government guidelines. Verify current scheme terms before applying.*
Need a project report for your Stand-Up India application? Contact Pragati Saathi Private Limited, Bhopal — www.pragatisaathi.in
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