Stand-Up India 2026 — ₹10 Lakh to ₹1 Crore Loan for SC/ST & Women Entrepreneurs: Complete Guide

Who Qualifies and What the Loan Covers

Eligibility: SC or ST borrower (any gender) above 18 years, OR a woman borrower of any category above 18 years. For enterprises that are not individually owned: at least 51% stake must be held by an SC/ST or woman borrower. The enterprise must be a greenfield (new) venture — Stand-Up India does not fund expansion of existing businesses. Loan range: Minimum ₹10 lakh, maximum ₹1 crore — or 85% of the project cost (whichever is lower). The borrower must bring 15% margin money from own funds. Loan cover: Working capital, machinery, equipment, building construction, shop furnishing — essentially all capital expenditure for setting up the enterprise. Eligible sectors: Manufacturing, services, and agri-allied activities (not primary agriculture). All non-farm income-generating activities are covered.

Interest Rate and Repayment Terms

Interest rate: Base Rate (or MCLR) + 3% + Tenor Premium — effectively 11–14% p.a. for most borrowers in 2026. This is slightly higher than regular business loans because Stand-Up India targets first-time borrowers who may not have a credit history. Repayment tenure: Up to 7 years. A moratorium of up to 18 months is allowed — meaning you do not need to repay the loan for the first 18 months while your business is starting. This is a significant advantage: most businesses need 12–18 months to stabilise cash flows before they can service a loan. Working capital component is structured as a Composite Term Loan + Working Capital (Cash Credit) — the bank determines the split based on the project report.

Why Banks Are Actively Sanctioning Stand-Up India Loans

Each scheduled commercial bank branch is mandated to sanction at least one Stand-Up India loan to an SC/ST borrower and one to a woman borrower. As of 2026, this target remains unmet at thousands of branches. This creates a situation where banks proactively reach out to eligible borrowers — or are more receptive to Stand-Up India applications than regular business loan applications. CIBIL requirements: No minimum CIBIL score is specified — but a score above 650 significantly improves approval chances. Banks typically accept first-time credit seekers with no CIBIL history for Stand-Up India if the project report is strong. Credit guarantee: Stand-Up India loans are covered under CGFSIL (Credit Guarantee Fund Scheme for Stand-Up India Loans) — meaning no collateral is required for loans up to ₹1 crore.

How to Apply at standupmitra.in

Step 1: Visit standupmitra.in and click 'Register as Borrower'. Fill your name, mobile number, Aadhaar, and category (SC/ST/Woman). Step 2: The portal shows your nearest bank branches with unfilled Stand-Up India quotas — contact them directly. Step 3: Prepare your project report. The portal has a free project report template. The report must include: business activity description, market demand validation, total project cost, margin money availability proof, employment to be generated (minimum 1 beyond the promoter). Step 4: Submit the application with all documents at the identified bank branch. The bank has 30 days to sanction or reject under RBI guidelines. Step 5: Track application status on standupmitra.in using your application number.

Frequently Asked Questions