Stand-Up India Scheme 2026: Loan Limits, Eligibility & How SC/ST and Women Entrepreneurs Get ₹1 Crore Approved
₹10 lakh to ₹1 crore, composite loan, near-zero effective subsidy — and a scheme that's currently mid-revamp. Here's what's actually live right now.
Since 2016, over ₹70,000 crore has been sanctioned under Stand-Up India across nearly 3 lakh applications — one of the largest dedicated credit programmes in the world for women and SC/ST entrepreneurs. Yet most first-time applicants still don't know the two things that actually determine whether their bank branch says yes: the scheme is currently mid-revamp, and the composite loan structure works very differently from a regular business loan.
Stand-Up India facilitates bank loans between ₹10 lakh and ₹1 crore to at least one SC/ST borrower and one woman borrower per bank branch, for setting up a new (greenfield) enterprise in manufacturing, services, trading, or agriculture-allied activities. It's run by the Department of Financial Services, Ministry of Finance, with SIDBI as the national operating agency, through its dedicated Stand Up Mitra portal. It sits alongside other first-generation entrepreneur schemes we cover in our government schemes hub, including PMEGP, PM Mudra Yojana, and the Startup India Seed Fund Scheme for tech-driven ventures.
This guide covers the current loan structure, who qualifies, the revamp that's underway, the exact documents banks ask for, and where the scheme naturally ends — the point at which most of our clients graduate into commercial project or working capital financing.
Stand-Up India is not one loan — it's a composite loan (term loan + working capital) with margin money rules that trip up more applicants than eligibility does. Getting the margin money math right before you approach a branch saves weeks of back-and-forth.
What Is Stand-Up India and Who Is It For?
Stand-Up India is a Government of India scheme requiring every scheduled commercial bank branch to extend a loan of ₹10 lakh to ₹1 crore to at least one SC/ST entrepreneur and one woman entrepreneur, for a new greenfield business. "Greenfield" is the key word — this is not for expanding or refinancing an existing business; it funds the first-time venture of the applicant.
The scheme has channelled significant lending toward underrepresented entrepreneurs since its 2016 launch, with women accounting for the large majority of sanctioned accounts and SC/ST beneficiaries making up the remainder, per Ministry of Finance data.
Loan Amount, Margin Money and Repayment Terms
| Feature | Detail |
|---|---|
| Loan range | ₹10 lakh to ₹1 crore |
| Loan structure | Composite loan — term loan + working capital |
| Working capital (up to ₹10 lakh) | Sanctioned as overdraft, with a RuPay debit card |
| Working capital (above ₹10 lakh) | Sanctioned as cash credit |
| Margin money | Minimum 10% from the applicant's own funds — up to 25% can be covered through convergence with other state/central subsidy schemes |
| Repayment tenure | Up to 7 years |
| Moratorium | Up to 18 months |
| Interest rate | Capped at MCLR/EBLR + 3% + tenor premium — typically 9–13% p.a. depending on the bank |
| Collateral | May be required, but largely mitigated by guarantee cover under CGFSI |
Unlike PMEGP, there's no direct subsidy in Stand-Up India — what you get instead is concessional pricing, collateral mitigation through the Credit Guarantee Fund Scheme for Stand-Up India (CGFSI), and margin-money flexibility if you can converge with a scheme like PMEGP or a state subsidy programme to cover part of your own contribution.
Who Is Eligible for Stand-Up India?
- Category: SC, ST, or woman entrepreneur (each category counted separately per bank branch requirement).
- Age: 18 years or above, no upper limit.
- Business type: Must be a greenfield (first-time) venture in manufacturing, services, trading, or an agriculture-allied activity — not an expansion of an existing unit.
- Ownership: For non-individual enterprises, at least 51% shareholding and controlling stake must be held by an SC/ST and/or woman entrepreneur.
- Credit history: The applicant must not be in default with any bank or financial institution.
Important: OBC applicants are not eligible under Stand-Up India specifically — that category is served instead by PMEGP (15–35% subsidy) or MUDRA loans up to ₹20 lakh.
Is the Scheme Being Revamped? What's Actually Live Right Now
Here's something most PMEGP-style listicles get wrong by not checking the date: the original Stand-Up India scheme formally concluded in March 2025. In March 2026, the Finance Minister told Parliament the scheme is being redrafted following a NITI Aayog review, with an expected doubling of the loan ceiling to ₹2 crore.
Separately, Budget 2025-26 announced a related but distinct initiative — term loans up to ₹2 crore over five years targeted specifically at 5 lakh first-time SC/ST women entrepreneurs.
As of this writing, the revamped version has not been formally relaunched. Banks are continuing to process applications under the existing ₹10 lakh–₹1 crore framework in the interim. If you're planning to apply, confirm current status and limits directly with your bank or the Stand Up Mitra portal before finalising your project cost — a scheme in transition is exactly where outdated third-party blog posts cause the most confusion.
Documents Required
| Category | Documents |
|---|---|
| Identity & Age | Aadhaar, PAN, age proof |
| Category proof | SC/ST caste certificate, or self-declaration for women applicants |
| Address | Address proof of applicant and business location |
| Business | Project report, greenfield declaration, shareholding proof (for non-individual entities, 51%+ SC/ST/woman ownership) |
| Financial | Bank statements, ITRs if available, margin money proof |
| Post-sanction | Loan sanction letter, CGFSI guarantee confirmation, utilisation certificate |
Why Applications Stall: The Real Reasons, Not the Polite Ones
- Margin money shortfallApplicants assume the 10% own contribution is the full requirement, then discover the bank wants proof of funds available before sanction, not after.
- Weak project report for a first-time ventureBanks have no operating history to lean on, so a shallow project report gets the same scrutiny as under PMEGP.
- Branch-level quota confusionEach bank branch has an obligation to lend to at least one SC/ST and one woman borrower, but that doesn't mean unlimited slots — timing and branch selection matter more than most applicants realise.
For Entrepreneurs in West Bengal and Kolkata
Stand-Up India applications route through your bank branch directly, with SIDBI as the coordinating agency — there's no separate state DIC layer the way PMEGP has. In West Bengal, PSU banks including SBI, UCO Bank, and UBI are the most active lenders for the scheme, alongside private banks like HDFC and Axis, each with slightly different internal thresholds on margin money verification and project appraisal depth.
For SC/ST and women entrepreneurs in and around Kolkata planning a manufacturing or trading venture near the ₹50 lakh–₹1 crore range, the practical challenge is usually less about eligibility and more about building a project report and margin-money structure a specific branch's credit committee will move on quickly.
Stand-Up India vs. PMEGP vs. What Comes Next
| Stand-Up India | PMEGP | |
|---|---|---|
| Eligible applicants | SC/ST or women only | Any category |
| Loan range | ₹10 lakh – ₹1 crore | Up to ₹50 lakh (manufacturing) |
| Subsidy | None (concessional rate instead) | 15–35% margin money subsidy |
| Business type | New (greenfield) only | New only |
Both schemes are built to fund a business launch, not to scale one. Once a Stand-Up India-funded venture is running and needs to grow past its ₹1 crore ceiling — more working capital, plant expansion, or a second facility — it moves into commercial lending: a Working Capital Loan or Cash Credit Facility for operations, a Project Loan for capex, or MSME financing via SIDBI MSME schemes and CGTMSE-backed collateral-free credit, structured for growth-stage manufacturers.
How CreditCares Helps
CreditCares isn't the lending bank or SIDBI — we're the team that gets your file appraisal-ready before it reaches a credit committee. For Stand-Up India applicants, that means structuring your project report for a business with no operating history, getting your margin-money documentation aligned with what your specific branch expects, and — for entrepreneurs who've already built a Stand-Up India-funded business and are ready to scale past ₹1 crore — coordinating financing across our network of 80+ banks and NBFCs via our secured loan and balance transfer & top-up desks. Check your file's readiness first with our CIBIL Advisor tool.
We work on a zero-upfront-fee basis — our fee is charged only after your loan is disbursed.
Check Your EligibilityFrequently Asked Questions
What is the Stand-Up India scheme?
A Government of India scheme requiring every scheduled commercial bank branch to extend a composite loan of ₹10 lakh to ₹1 crore to at least one SC/ST and one woman entrepreneur, for setting up a new greenfield business.
Who is eligible for Stand-Up India loans?
SC, ST, or women entrepreneurs above 18 years of age, setting up a first-time (greenfield) venture, with at least 51% ownership in the case of non-individual enterprises. OBC applicants are not eligible under this specific scheme.
What is the loan amount under Stand-Up India?
Between ₹10 lakh and ₹1 crore, structured as a composite loan combining a term loan and working capital (overdraft up to ₹10 lakh, cash credit above that).
Is collateral required for Stand-Up India loans?
Banks may ask for collateral, but exposure is largely covered under the Credit Guarantee Fund Scheme for Stand-Up India (CGFSI), which reduces the practical need for personal collateral in most cases.
How is Stand-Up India different from PMEGP?
Stand-Up India is restricted to SC/ST and women applicants and offers no direct subsidy, only concessional pricing and guarantee cover. PMEGP is open to any category and provides a 15–35% margin money subsidy, but caps out at ₹50 lakh for manufacturing.
Is the Stand-Up India scheme still active in 2026?
The original scheme concluded in March 2025 and is being redrafted, with an announced (but not yet formally relaunched) plan to raise the ceiling to ₹2 crore. Banks continue processing applications under the existing ₹10 lakh–₹1 crore framework in the interim — confirm current status with your bank before finalising a project.
What is the margin money requirement?
A minimum 10% of project cost from the applicant's own funds; up to 25% can be met through convergence with other government subsidy schemes.
Can OBC entrepreneurs apply?
No. OBC applicants should look at PMEGP (15–35% subsidy) or MUDRA loans (up to ₹20 lakh) instead.
Sources: Ministry of Finance / Department of Financial Services, Stand Up Mitra (SIDBI), SIDBI, Ministry of MSME, Udyam Registration, CIBIL, NABARD. Explore more: Jansamarth Schemes · PM Vishwakarma · CLCSS · PSB Loans in 59 Minutes · Become a Partner.