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Stand-Up India: loan range, eligibility and exam facts
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Stand-Up India is a scheme launched on 5 April 2016 to encourage entrepreneurship among Scheduled Caste and Scheduled Tribe members and women. It aims for each bank branch to give at least one loan to an SC or ST borrower and at least one loan to a woman borrower, for setting up a new business.
Key features
- Loan range: from ₹10 lakh to ₹1 crore (composite loan: term loan and working capital).
- Purpose: a greenfield enterprise, that is, a first-time venture in manufacturing, services, agriculture-allied activities or trading.
- Eligible borrowers: SC/ST and/or women entrepreneurs above 18 years of age. A non-individual enterprise qualifies if at least 51% of the shareholding and controlling stake is held by an SC/ST or woman entrepreneur.
- Repayment: up to seven years, with a moratorium of up to 18 months.
- Support: a RuPay debit card for working capital, a credit guarantee through a dedicated trust, and refinance from SIDBI.
The scheme's period was extended up to 2025. Check standupmitra.in for its present status and any successor, since later budgets made new announcements for first-time entrepreneurs.
How it differs from MUDRA
| Point | Stand-Up India | MUDRA |
|---|---|---|
| Borrower focus | SC/ST and women | Any non-corporate small business |
| Loan size at launch | ₹10 lakh to ₹1 crore | Up to ₹10 lakh |
| Business | Greenfield (new) | New or existing |
| Refinance | SIDBI | MUDRA (a SIDBI subsidiary) |
The two fill different gaps: MUDRA handles small loans, Stand-Up India handles the next band up.
Example
A woman in Salem wants to start a spice-processing unit with a total project cost of ₹60 lakh. If a bank agrees, she could apply for a composite loan under Stand-Up India, repay over seven years, and start with an 18-month moratorium.
How bank exams ask about it
Look for the launch year, the loan range, who it targets, and the meaning of "greenfield". Other typical stems ask which institution provides refinance, or which scheme provides loans between ₹10 lakh and ₹1 crore to SC/ST and women. Learn the difference from MUDRA. Add it to the schemes block of banking awareness.
Frequently asked questions
Can an existing business take a Stand-Up India loan?
No. The scheme is for a first-time, new enterprise.
Where do I apply?
At a bank branch, through the Stand-Up Mitra portal, or via the lead district manager's office, as the scheme's site describes.
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