Stand-Up India Scheme 2026 – Loan Support for SC/ST & Women

The Stand-Up India Scheme is a flagship initiative launched by the Government of India to promote entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and Women entrepreneurs. The scheme facilitates bank loans for setting up greenfield enterprises in manufacturing, services, trading, or agriculture-allied sectors.

 

It is implemented through scheduled commercial banks across India and monitored by the Small Industries Development Bank of India (SIDBI).

 

What is the Stand-Up India Scheme?

 

Stand-Up India aims to ensure that at least one SC/ST borrower and one woman borrower per bank branch receive financial assistance to start a new enterprise.

 

The scheme provides:

 

• Bank loans from ₹10 lakh to ₹1 crore

• Support for first-time entrepreneurs

• Handholding assistance

• Credit guarantee coverage

 

Key Features of Stand-Up India Scheme 2026

 

• Loan Amount

1. Minimum: ₹10 lakh

2. Maximum: ₹1 crore

• Type of Loan

1. Composite loan (includes both term loan and working capital)

• Loan Coverage

1. Up to 75% of the total project cost

2. Borrower must contribute at least 10% of project cost

• Repayment Period

1. Maximum 7 years

2. Moratorium period up to 18 months

 

Eligibility Criteria (2026)

 

To apply under the Stand-Up India Scheme, the applicant must meet the following conditions:

 

• Basic Eligibility

1. Must be SC/ST or Woman entrepreneur

2. Age above 18 years

3. Greenfield project (first-time venture in manufacturing, services, trading, or agri-allied activities)

4. No default with any bank or other financial institution.

• For Non-Individual Enterprises

1. At least 51% shareholding and controlling stake must be held by SC/ST or woman entrepreneur

 

Eligible Business Sectors

 

Loans can be availed for:

 

• Manufacturing units

• Service sector businesses

• Trading enterprises

• Food processing

• Retail businesses

• Agri-allied activities

• Small-scale industrial units

 

(Note: The enterprise must be a new venture.)

 

Interest Rate in 2026

 

The interest rate is linked to:

 

• Bank’s MCLR (Marginal Cost of Funds-based Lending Rate)

• Credit profile of applicant

• Risk assessment

 

Typically, interest rate = MCLR + 3% + tenor premium (varies by bank).

Applicants should confirm exact rates with their respective banks.

 

Documents Required

 

Applicants generally need:

 

• Personal Documents

1. Aadhar Card

2. PAN Card

3. Caste Certificate (for SC/ST applicants)

4. Passport-size photographs

• Business Documents

1. Detailed business plan

2. Project report with cost estimation

3. Quotation of machinery/equipment

4. Registration certificates (if applicable)

5. Partnership deed or incorporation documents (if non-individual entity)

• Financial Documents

1. Bank statements (last 6 months)

2. Income proof (if available)

 

How to Apply for the Stand-Up India Scheme 2026

 

Applicants can apply through both online and offline modes.

 

• Online Application Process

1. Visit the official Stand-Up India portal

2. Register as a borrower

3. Fill in the required details

4. Upload necessary documents

5. Select preferred bank branch

6. Submit application

 

The bank will review the proposal and contact the applicant for further processing.

 

• Offline Application Process

1. Visit the nearest scheduled commercial bank branch

2. Request the Stand-Up India loan application form

3. Submit the filled form with documents

4. The bank conducts appraisal and verification

5. Loan approval and disbursement

 

Credit Guarantee Support

 

Loans under Stand-Up India are backed by credit guarantee coverage through government-supported guarantee schemes, reducing the risk for banks.

 

Benefits of the Stand-Up India Scheme

 

• Encourages entrepreneurship among SC/ST & women

• Large loan amount (up to ₹1 crore)

• Supports first-time business owners

• Moratorium period available

• Nationwide availability

 

Difference Between Stand-Up India and Mudra Loan

 

 

Common Reasons for Loan Rejection

 

• Weak business plan

• Incomplete documentation

• Poor credit history

• Ineligible project (not greenfield)

• Insufficient promoter contribution

 

Tips to Increase Approval Chances

 

• Prepare a detailed and realistic project report

• Maintain good credit score

• Show clear revenue projections

• Ensure proper documentation

• Take guidance from financial advisors

 

Conclusion

 

The Stand-Up India Scheme 2026 is a powerful initiative aimed at empowering SC/ST communities and women entrepreneurs by providing substantial financial assistance for new businesses. With loans up to ₹1 crore and structured support, it plays a key role in promoting inclusive economic growth in India.

 

If you belong to the eligible category and plan to start a new enterprise, this scheme can be a strong financial foundation for your entrepreneurial journey.

 

Disclaimer

 

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.

Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.