Stand-Up India — ₹10 Lakh to ₹1 Crore Composite Loans for SC/ST and Women Entrepreneurs Setting Up a Greenfield Enterprise: Eligibility, 51% Ownership Rule, Margin and Collateral (CGFSI Guarantee), the One-SC/ST-and-One-Woman-per-Branch Mandate, Applying on standupmitra.in, and the 2025 Successor Scheme With Term Loans up to ₹2 Crore
Video Explanation & Insights
Bad CIBIL? How to still get a government-bank loan — Stand-Up India for women and SC/ST entrepreneurs
4 videos on this topic
What Stand-Up India gives — and to whom
Launched on 5 April 2016 by the Department of Financial Services, Stand-Up India tackles the under-financing of SC/ST and women entrepreneurs with a branch-level mandate rather than a subsidy: every scheduled commercial bank branch lends at least one composite loan of ₹10 lakh to ₹1 crore to an SC/ST borrower and one to a woman borrower for a first-time (greenfield) enterprise in manufacturing, services, trading or activities allied to agriculture. The loan covers up to 85% of the project cost; the borrower brings a margin of up to 15%, at least 10% of it as own funds (the balance may come from converging state or central subsidy schemes). Interest is the bank's lowest applicable rate for the category (not above base rate/MCLR + 3% + tenor premium), repayment is over up to 7 years with a moratorium of up to 18 months, and the Credit Guarantee Fund for Stand-Up India (CGFSI) covers the loan so no collateral or third-party guarantee is required — though primary security over the assets financed is taken. The scheme period ended on 31 March 2025 and applications sanctioned under it continue; the Union Budget 2025-26 announced a new scheme for five lakh first-time women, SC and ST entrepreneurs with term loans up to ₹2 crore over five years, along with online capacity-building — its guidelines were under preparation at the time of writing.
| Condition | Rule |
|---|---|
| Borrower | SC or ST entrepreneur, or a woman entrepreneur, aged 18 or above; not a defaulter with any bank/FI |
| Enterprise | Greenfield — the borrower's first venture in manufacturing, services, trading or allied agriculture (dairy, poultry, fisheries, bee-keeping etc.) |
| Non-individual entity | Partnership, LLP or company in which the SC/ST or woman entrepreneur holds at least 51% of shareholding and controlling stake |
| Loan | ₹10 lakh to ₹1 crore composite (term loan + working capital); the working-capital portion may be through a cash-credit limit or a RuPay debit card |
| Margin | Up to 15% of project cost; minimum 10% own contribution; subsidy schemes may fund the rest of the margin |
| Security | Primary security on the assets; no collateral — CGFSI guarantee (guarantee fee as per the fund's rules) |
| Repayment | Up to 7 years including a moratorium of up to 18 months |
The bad-CIBIL route — how it works and where it breaks
- •The idea in the video: where the husband's or father's CIBIL is damaged, the business is set up (or re-registered — GST, Udyam, current account) in the name of the wife, sister or an SC/ST family member who will own 51% or more and run it; that person applies under Stand-Up India, where the bank cannot demand collateral and has a mandate to lend.
- •Where it breaks: the applicant's own CIBIL must be clean; the bank runs the co-applicants' and guarantors' reports, and a family member with a default cannot be the guarantor — under Mudra the bank often asks for one, which is why the video prefers Stand-Up India (minimum ₹10 lakh) for these cases.
- •Greenfield means greenfield: switching an existing running business into a relative's name and calling it new is checked through GST history, premises and bank statements; the enterprise must be genuinely new and genuinely owned and managed by the applicant.
- •Alternatives the video mentions: PSB Loans in 59 Minutes for a running business in the new applicant's name; a smaller Mudra loan if a clean guarantor exists.
Applying — standupmitra.in and the branch
- 1Register on standupmitra.in (SIDBI's portal): personal details, category, business details, loan amount, and whether handholding (training, project report, registrations, margin-money subsidy schemes) is needed — the portal connects to Lead District Managers and handholding agencies.
- 2Or apply directly at any scheduled commercial bank branch (public, private, RRB, SFB); the Lead District Manager tracks the branch's Stand-Up India target.
- 3Documents: identity and address proof, caste certificate (SC/ST), proof of the entity and ownership (partnership deed/incorporation with 51% stake), project report with cost, means of finance and projections, quotations, premises proof, bank statements, Udyam registration, and any subsidy sanction used for margin.
- 4Sanction and disbursement: term loan disbursed to suppliers against invoices; working capital as a limit; the RuPay debit card for the working-capital portion where offered.
- 5Convergence: pair with PMEGP or a state margin-money scheme for the margin, and with a state interest subsidy (Rajasthan's Nari Shakti for women, DAUPY for SC/ST) on the same loan where the bank agrees.
Stand-Up India: questions we are asked
The scheme period ended on 31 March 2025; Budget 2025-26 announced a successor with term loans up to ₹2 crore for first-time women and SC/ST entrepreneurs — check standupmitra.in and DFS for the operative guidelines.
No — ₹10 lakh is the floor; use Mudra for smaller loans.
No collateral or third-party guarantee — the CGFSI guarantee covers the loan; the assets financed are the primary security.
Yes if she genuinely owns (51%+) and runs a new enterprise and her own report is clean; a co-applicant or guarantor with a default will still fail the file.
Yes — manufacturing, services, trading and allied agriculture are all eligible for greenfield enterprises.
Yes — entity and ownership structuring, project report, standupmitra.in/branch filing, convergence with margin-money and interest-subsidy schemes, and follow-up to sanction.