Stand-Up India scheme: loans for SC, ST and women entrepreneurs

Stand-Up India is a Government of India scheme that helps women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs get a bank loan to start their first business. The loan is above ₹10 lakh and up to ₹1 crore, it can cover up to 85% of the project cost, and it is given by branches of Scheduled Commercial Banks. The business must be new, in manufacturing, services, trading or an activity allied to agriculture.

On 11 November 2026 the Union Cabinet approved the continuation of Stand-Up India for five more years, up to 31 March 2031, with a credit guarantee corpus of ₹4,111 crore and a target of at least 2.5 lakh more entrepreneurs.

Stand-Up India at a glance

Sources: PIB, 11 November 2026; Department of Financial Services scheme page; Stand-Up India portal scheme features.

Status in 2026: continued to 31 March 2031

Stand-Up India was launched on 5 April 2016. The Department of Financial Services states that the scheme ran up to 31 March 2025, in line with the 15th Finance Commission cycle. For most of 2025 and 2026, new sanctions under the scheme name were therefore on hold.

That changed on 11 November 2026. The Union Cabinet, chaired by the Prime Minister, approved the continuation of Stand-Up India for five years up to 31 March 2031. The approval keeps the core design: women, SC and ST entrepreneurs, new enterprises, loans above ₹10 lakh and up to ₹1 crore, and up to 85% of the project cost. It adds two clear points on the guarantee: cover of 85% of the loan amount and a standard guarantee fee of 0.50%.

The Cabinet release does not give a date from which banks restart sanctions. Before you spend money on a project report, ask your bank branch whether it is accepting Stand-Up India applications under the 2026–2031 continuation. Read the full background on what Stand-Up India is and on the Budget 2025-26 scheme for first-time entrepreneurs.

Who can borrow

You can apply if all of these are true:

• You are a woman, or you belong to a Scheduled Caste or Scheduled Tribe. Women of any community qualify.
• You are above 18 years of age.
• The business is your first venture in that field. The scheme calls this a greenfield project.
• You are not in default to any bank or financial institution.
• If the business is a company, LLP or partnership, SC/ST and/or women entrepreneurs hold at least 51% of the shares and the controlling stake.

Taking over an existing business, or expanding one you already run, is not covered. Crop loans and land improvement such as canals, irrigation and wells are also outside the scheme, but allied activities such as dairy, poultry, fisheries, beekeeping and food processing are included. Use the Stand-Up India eligibility checker to test your own situation in a few clicks.

Loan size, margin money, interest and repayment

The loan is above ₹10 lakh and up to ₹1 crore. It can be a composite loan, which combines a term loan for assets such as machinery with working capital, or a term loan alone.

The bank can lend up to 85% of the project cost. The remaining 15% is the margin money. Part of it can come from other central or state schemes, such as a subsidy, but you must always bring at least 10% of the project cost as your own contribution. If your own money plus other support is more than 15%, the bank lends less than 85%.

Interest is the lowest rate the bank applies to your rating category, and it cannot go above the bank’s MCLR plus 3% plus a tenor premium. Each bank sets its own MCLR, so the actual rate differs between banks. Repayment is spread over up to 7 years, with a moratorium of up to 18 months at the start.

Try the margin-money calculator to see the largest loan your project could get and how much you need to bring.

Credit guarantee instead of collateral

Stand-Up India loans can be backed by the Credit Guarantee Scheme for Stand-Up India (CGSSI), run by the National Credit Guarantee Trustee Company (NCGTC). With this guarantee the bank can lend without collateral or a third-party guarantee. The bank decides whether to use collateral or the guarantee, and a borrower who has collateral is not forced to take the guarantee. The 2026 approval sets guarantee cover at 85% of the loan and a standard fee of 0.50%. See how CGSSI works.

Three ways to apply

Stand-Up India can be accessed in three ways:

On the portal you answer a short set of questions. You are then marked as a “ready borrower”, whose application goes straight to the bank you choose, or a “trainee borrower”, who is first linked to training and support. The Department of Financial Services also says loans can be applied for through the JanSamarth portal. Check that Stand-Up India appears in its list before you start there. Step-by-step help is on how to apply for a Stand-Up India loan, and the papers to gather are on Stand-Up India documents.

Handholding support for first-time founders

Most borrowers are starting their first business, so the scheme links them to support in seven areas. These are skill training, financial literacy, entrepreneurship development programmes, mentoring, project report preparation, filling the loan application, and work sheds or margin-money support. SIDBI and NABARD offices act as Stand-Up India Connect Centres, and the Lead District Manager monitors cases in each district. Registration on the portal is free. Training agencies may charge their own fees. Read more on handholding and the LDM route.

Stand-Up India, Mudra or PMEGP?

Stand-Up India is not the only government-backed business loan. Mudra covers smaller loans, up to ₹10 lakh, or ₹20 lakh under Tarun Plus for borrowers who have repaid a Tarun loan. PMEGP gives a margin-money subsidy of up to 35% on new micro units with a project cost of up to ₹50 lakh in manufacturing or ₹20 lakh in services. If you need between ₹10 lakh and ₹1 crore for a new business and you are a woman, SC or ST entrepreneur, Stand-Up India is usually the one to look at. See the Stand-Up India vs Mudra vs PMEGP comparison.

If something goes wrong

If your bank delays your application or turns it down, first ask the branch for the reason in writing. The scheme guidelines expect banks to give reasons for rejection and to settle grievances within 15 days. If that fails, you can go to the Lead District Manager and the District Level Credit Committee, and finally to the Reserve Bank of India’s complaint portal. The full escalation path is on Stand-Up India complaint and grievance route.

Official links

• Stand-Up India portal: standupmitra.in
• Department of Financial Services: Stand Up India Scheme (SUPI)
• Cabinet decision of 11 November 2026: PIB release
• JanSamarth: jansamarth.in
• SIDBI: sidbi.in

FAQ

What is the Stand-Up India scheme? It is a Government of India scheme that helps women, SC and ST entrepreneurs get bank loans above ₹10 lakh and up to ₹1 crore to start a new business in manufacturing, services, trading or agri-allied activities.

Is Stand-Up India still active in 2026? The scheme period ended on 31 March 2025. On 11 November 2026 the Union Cabinet approved its continuation up to 31 March 2031. Ask your bank whether it has started taking applications under the continued scheme.

Who is eligible for Stand-Up India? Women of any community, and SC and ST entrepreneurs, above 18 years of age, setting up their first enterprise and not in default to any bank. Firms need at least 51% SC/ST and/or women ownership with control.

How much loan can I get under Stand-Up India? Above ₹10 lakh and up to ₹1 crore, covering up to 85% of the project cost. You bring at least 10% yourself.

Do I need collateral? Not necessarily. The loan can be covered by the CGSSI credit guarantee instead of collateral. The bank decides which applies.

Can I use Stand-Up India for my existing shop? No. Expansion or takeover of an existing business is not covered. Look at Mudra instead.

Where do I apply? At any Scheduled Commercial Bank branch, on standupmitra.in, or through your Lead District Manager. More answers are on the Stand-Up India FAQ.

Last reviewed: 12 November 2026.