Important Update Before You Read Further
The original Stand-Up India scheme officially ended on March 31, 2025. As of the most recent parliamentary update, in March 2026, the government said a revamped version is being redrafted based on a review by NITI Aayog and is expected to eventually go before the Cabinet for approval.
Some reports suggest the new version may double the loan ceiling to ₹2 crore. But as of this writing, no relaunch date has been officially confirmed.
This guide describes the scheme as it operated before March 2025, since these are the terms most entrepreneurs and bank staff will still recognize. Before you plan around this scheme, check the current status directly with your bank, the StandUpMitra portal, or your Lead District Manager (LDM), since the framework may be mid-transition.
Stand-Up India Scheme- Explained in One Minute
Stand-Up India was designed to give women and SC/ST entrepreneurs access to loans between ₹10 lakh and ₹1 crore to start a brand-new business.
Every bank branch was expected to support at least one SC/ST borrower and one woman borrower. The loan was meant to be collateral-free, backed by a government credit guarantee, with 7 years to repay and up to 18 months before repayment was due.
What Was Stand-Up India?
The scheme was launched on April 5, 2016. Its purpose was straightforward: make sure that women, Scheduled Castes, and Scheduled Tribes, groups that have historically struggled to access formal business credit, had a real, guaranteed path to institutional funding for a new enterprise.
It worked through scheduled commercial banks across India, and was monitored by SIDBI, the Small Industries Development Bank of India. The core design commitment was simple. Every one of India’s roughly 1.25 lakh bank branches was expected to extend at least one loan to an SC/ST borrower and one loan to a woman borrower, specifically for setting up a new business.
Since its launch, the scheme sanctioned well over 1.8 lakh loans, worth tens of thousands of crores of rupees, with women accounting for a large majority of beneficiaries.
Why Did This Scheme Matter
Bank credit in India has historically been harder to access for women and for SC/ST communities, often not because of any formal rule, but because of a lack of collateral, limited financial history, or simply not being connected to the informal networks that make credit easier to access for others.
Stand-Up India directly addressed this with a mandate, not just an option. Banks weren’t just encouraged to lend to these groups. They were required to reach at least one borrower from each group, per branch. This turned access to credit from something a bank might choose to offer into something it was expected to actively deliver.
How the Scheme Was Structured
The loan was structured as a composite loan, meaning it combined both a term loan (for setting up equipment or infrastructure) and working capital (for day-to-day running costs) in a single sanctioned amount.
The loan covered 85% of the project cost, as long as the entrepreneur’s own contribution, combined with any other subsidy, made up at least 15% margin money. The interest rate charged was meant to be the lowest rate the bank offered for that category of loan, not a marked-up rate.
Repayment was set at up to 7 years, with a moratorium of up to 18 months before EMI payments needed to begin. This gave a new business real breathing room to become operational and start generating revenue before loan repayment kicked in.
Key Details at a Glance (Pre-2025 Scheme Terms)
| Detail | Amount / Criteria |
|---|---|
| Loan amount | ₹10 lakh to ₹1 crore |
| Loan type | Composite loan (term loan + working capital) |
| Coverage | Up to 85% of project cost |
| Margin money | At least 15% of project cost (borrower + other sources) |
| Eligibility age | 18 years and above |
| Eligible groups | At least one SC/ST borrower and one woman borrower per bank branch |
| Business type | New (greenfield) enterprise only — manufacturing, services, trading, or agri-allied activities |
| Non-individual enterprises | At least 51% ownership/controlling stake held by the eligible category |
| Repayment tenure | 7 years, with moratorium up to 18 months |
| Collateral | Generally not required, via credit guarantee route (CGFSIL); banks may still ask for security on the assets created |
| Monitoring body | SIDBI |
| Application portal | standupmitra.in |
| Scheme status (as of March 2026) | Expired March 2025; being redesigned, relaunch date not yet confirmed |
Who Was Eligible
- Women entrepreneurs, or SC/ST entrepreneurs, aged 18 or above.
- The business had to be a greenfield enterprise. This means a completely new business, not the expansion or modernization of one that already exists.
- The business had to be in manufacturing, services, trading, or an agriculture-allied activity.
- For partnerships or companies, at least 51% of the shareholding and controlling stake had to be held by a woman, or by an SC/ST entrepreneur.
- The applicant could not be a defaulter on any existing bank or financial institution loan.
What “Greenfield” Actually Means Here
This word comes up constantly in Stand-Up India material, and it’s worth understanding clearly. A greenfield enterprise is one being built from scratch, on land or in a business line where the entrepreneur has no pre-existing operation.
It is explicitly not meant for expanding a business you already run, buying out an existing unit, or modernizing current equipment. If you already run a business and want to grow it, this scheme, in its original form, was not designed for that.
MUDRA or PMEGP’s upgradation options are closer fits for that situation.
How the Application Worked
- Applicants approached the StandUpMitra portal (standupmitra.in), which acted as an aggregator connecting entrepreneurs to participating banks.
- On the portal, applicants answered a set of questions covering their category, location, business type, skills, and how much of their own investment they could bring.
- Based on this, applicants were classified either as a “ready borrower,” meaning they could proceed directly to a bank, or a “trainee borrower,” meaning they’d first receive handholding support before applying.
- Applicants could also approach a bank branch directly, or work through their Lead District Manager (LDM), rather than going through the portal.
- The bank then evaluated the project report, sanctioned the loan (subject to eligibility and viability), and disbursed the composite loan amount.
Common Mistakes That Delayed Approval (Under the Original Scheme)
- Applying for an expansion project, not a new one. Since the scheme funded only greenfield ventures, applications to modernize or scale an existing business were routinely rejected under these terms.
- Missing the 51% ownership rule for a partnership or company. If the eligible category (woman or SC/ST) didn’t hold a controlling 51% stake, the application didn’t qualify.
- Coming in without a credible project report. As with PMEGP and MUDRA, banks needed a realistic, specific business plan, not just an idea, to sanction a loan of this size.
- Not engaging with the handholding support when it was actually needed. First-time entrepreneurs who skipped the “trainee borrower” support track sometimes struggled with parts of the process that the support system was specifically built to help with.
What to Do Right Now, Given the Scheme’s Status
If you’re a woman or an SC/ST entrepreneur planning a new business and hoping to use Stand-Up India, the best thing you can do today is check directly with your bank or the StandUpMitra portal.
Confirm whether the scheme is currently accepting fresh applications. Also confirm the current terms.
Since the scheme is under redesign, some details may change. This includes the loan ceiling and eligibility rules.
Those details may differ from what is described here once the revamped version is formally approved by the Cabinet.In the meantime, PMEGP and MUDRA remain fully active and may be worth exploring for smaller project sizes, since neither of those schemes has paused.
Frequently Asked Questions
Is Stand-Up India currently active?
As of the most recent parliamentary update in March 2026, the original scheme has expired, and a revamped version is still being finalized. Confirm current status with your bank or the StandUpMitra portal before planning around it.
What was the loan amount under the original scheme?
₹10 lakh to ₹1 crore, structured as a composite loan covering both term financing and working capital.
Is a higher loan ceiling being planned?
Some reports suggest the revamped scheme could raise the ceiling to ₹2 crore, but this has not been officially confirmed as final.
Who was the scheme originally meant for?
Women entrepreneurs and SC/ST entrepreneurs, aged 18 and above, starting a completely new (greenfield) business.
Did the loan require collateral?
Generally not, since it was backed by a government credit guarantee route. Banks could still ask for security on assets created using the loan itself, depending on their own policies.
Could an existing business apply?
No. The scheme funded only new, greenfield enterprises, not the expansion of an existing one.
What sectors were covered?
Manufacturing, services, trading, and agriculture-allied activities.
How was the application made?
Through the StandUpMitra portal, directly at a bank branch, or via the local Lead District Manager (LDM).
What happens to applications submitted before the scheme expired?
If you have an application in process, follow up directly with your bank, since transition-period handling can vary by lender and region.
Where can I get the latest official status?
Check standupmitra.in, or contact your bank’s SME/MSME desk directly, since the revamped scheme’s rollout will likely be communicated through these channels first.
Related Schemes
PMEGP — margin-money subsidy for a new manufacturing or service unit Mudra Yojana (PMMY) — collateral-free loans up to ₹20 lakh PM SVANidhi — small working-capital loans for street vendors Browse all scheme guides
Last verified: July 2026. Information compiled from Lok Sabha proceedings (March 2026), Ministry of Finance and SIDBI sources, and the official StandUpMitra portal (standupmitra.in). This is independent informational content, not affiliated with the Government of India. This scheme is currently under redesign following its expiry in March 2025 — terms described here reflect the pre-2025 structure, and readers should confirm current status and terms directly before applying.