Questions

Stand-Up India FAQ

स्टैंड-अप इंडिया के आम सवाल

Short answers to the questions people ask most about Stand-Up India. Each answer links to the page with full details. Rules come from the Department of Financial Services, the Stand-Up India portal run by SIDBI, and PIB releases, including the Cabinet decision of 11 November 2026.

Scheme status

Is Stand-Up India still running in 2026? The earlier scheme period ended on 31 March 2025. On 11 November 2026 the Union Cabinet approved the continuation of Stand-Up India for five years, up to 31 March 2031 (PIB). Ask your bank whether it has started taking applications under the continued scheme.

When did Stand-Up India start? On 5 April 2016.

Why did it stop in March 2025? The Department of Financial Services says the scheme ran up to 31 March 2025 “in line with the 15th Finance Commission”, meaning it was approved for that funding cycle. Continuation needed a fresh approval, which the Cabinet gave on 11 November 2026.

What changed with the 2026 continuation? The loan can now be a composite loan or a term loan. The approval also sets guarantee cover at 85% of the loan with a standard fee of 0.50%, a ₹4,111 crore guarantee corpus, and a target of 2.5 lakh more entrepreneurs. See what Stand-Up India is.

Is Stand-Up India being replaced by the ₹2 crore scheme? No. The Budget 2025-26 announced a separate scheme for first-time women, SC and ST entrepreneurs with term loans up to ₹2 crore. It had not been launched on official pages as of 12 November 2026. Stand-Up India itself has been continued. Read the first-time entrepreneurs scheme.

How many people has Stand-Up India helped? More than 2.75 lakh women, SC and ST entrepreneurs since April 2016, according to the Cabinet release of 11 November 2026. Women make up the large majority of borrowers.

Eligibility

Who can apply for Stand-Up India? Women of any community, and SC and ST entrepreneurs, above 18 years of age, setting up a new (greenfield) enterprise, and not in default to any bank. See eligibility.

Can a general-category woman apply? Yes. Women qualify on gender alone.

Can an OBC man apply? Not as an individual. He can be part of a firm in which SC/ST and/or women hold at least 51% and control.

What does greenfield mean? Your first-time venture in manufacturing, services, agri-allied activities or trading.

Can I use Stand-Up India to expand my existing business? No. Expansion, enhancement and takeover of an existing business are not permitted.

What if I ran a different kind of business before? The scheme’s wording is “first time venture of the beneficiary” in the sector. Ask your bank how it reads your earlier business against the new one before you apply.

Can a company or LLP apply? Yes, if SC/ST and/or women entrepreneurs hold at least 51% of the shares and the controlling stake.

Are agricultural activities covered? Agri-allied activities are covered: dairy, poultry, fisheries, beekeeping, livestock, food and agro-processing, grading and sorting, agri-clinics and similar. Crop loans and land improvement, such as canals, irrigation and wells, are excluded.

Is there an upper age limit? The scheme sets a minimum (“above 18 years”) but no maximum. The bank considers repayment over the loan period.

Does a loan default stop me? Yes, if you are in default to any bank or financial institution. Clear it first and keep a no-dues letter.

Loan terms

How much can I borrow? Above ₹10 lakh and up to ₹1 crore, covering up to 85% of the project cost. See loan amount and interest.

What is the minimum loan? The loan must be more than ₹10 lakh. For smaller needs, look at Mudra.

What is margin money? The part of the project cost the bank does not lend: up to 15%. At least 10% of the project cost must be your own money. The rest can come from other central or state schemes.

What is the interest rate? Each bank sets it. It must be the bank’s lowest rate for your rating category and not above MCLR + 3% + tenor premium.

How long is repayment? Up to 7 years, including a moratorium of up to 18 months.

Is it a composite loan? It can be composite (term loan plus working capital) or, under the 2026 approval, a term loan alone.

How is working capital given? Up to ₹10 lakh as an overdraft with a RuPay debit card; above ₹10 lakh as a cash credit limit.

Can I buy land with the loan? Not for trading. For manufacturing or services, banks may consider it case by case if it is part of the project plan.

Is there a processing fee? Banks may charge reasonable processing fees and ask for insurance of assets and stock statements. Ask for the charges in writing.

Is there a subsidy? Not in Stand-Up India itself. Subsidies from other schemes can count towards the margin money.

Does the loan cover the cost of my project report? Ask your bank. The loan funds the project cost that the bank appraises and accepts.

Guarantee and collateral

Do I need collateral? Not necessarily. The loan can be covered by the Credit Guarantee Scheme for Stand-Up India (CGSSI) instead. The bank decides. See CGSSI.

What does the guarantee cover? Under the 2026 approval, 85% of the loan amount, with a standard guarantee fee of 0.50%.

Who runs the guarantee? The National Credit Guarantee Trustee Company (NCGTC). Your bank arranges it.

If I have collateral, must I take the guarantee? No. You may offer collateral instead. Discuss it with your bank.

Applying

How do I apply? At any Scheduled Commercial Bank branch, on standupmitra.in, or through your Lead District Manager. See how to apply.

Is there an online application? Yes, on standupmitra.in. Registration is free.

Can I apply on JanSamarth? The Department of Financial Services says loans can also be applied for on jansamarth.in. The June 2026 JanSamarth list of 16 schemes did not show Stand-Up India, so check the live list first.

What are ready and trainee borrowers? On the portal, a ready borrower needs no support and the application goes to the chosen bank. A trainee borrower is first linked to the LDM and SIDBI or NABARD for training and other help.

Which banks give Stand-Up India loans? All branches of Scheduled Commercial Banks, including public, private and foreign banks, and regional rural banks according to the bankers’ FAQ.

How long does the bank take? For complete applications, within 3 weeks for loans from ₹5 lakh to ₹25 lakh, and within 6 weeks above ₹25 lakh, as set out in the scheme guidelines.

Can I change my application after submitting? On the portal you can upload more documents, and use “Withdraw to reapply” before the first disbursement.

Do I need an agent? No. Applying is free. Be wary of anyone who charges to “get your loan passed”.

Does every bank branch have to lend under the scheme? The scheme’s objective is that each branch of a Scheduled Commercial Bank lends to at least one SC or ST borrower and at least one woman borrower. Every branch is covered, but each loan still depends on the bank’s appraisal of the project.

Can I apply to a bank I did not choose at first? Yes. The portal lets you approach banks beyond your preferred ones, and any bank or branch can pick up an application from the portal’s marketplace.

Can a trainee borrower become a ready borrower? Yes. Once your handholding needs are met to the satisfaction of the LDM and you, the portal generates your loan application for the bank.

Do I need a techno-economic viability report? For composite loans up to ₹25 lakh, the bankers’ FAQ says it may not be insisted on. A clear project report is still needed.

Documents and handholding

What documents do I need? Identity and address proof, category proof (SC/ST certificate if relevant), firm documents for non-individuals, a project report, quotations, proof of your own contribution and premises papers. Your bank’s checklist is final. See documents.

Who helps me make a project report? Handholding support covers project reports. Project profiles are available from SIDBI, NABARD and District Industries Centres. See handholding and the LDM.

Is training free? Portal registration is free. Training agencies charge their own fees, paid to them directly.

What is a Stand-Up India Connect Centre? A SIDBI or NABARD office that arranges handholding and follows up with banks.

After sanction

What happens after the loan is sanctioned? You deposit your margin money, complete the bank’s paperwork and draw the loan as the unit is set up. Connect centres remain available to you, and quarterly district events support new borrowers.

What if I cannot repay on time? Talk to your bank early. The Ministry of Finance has told Parliament that banks use measures such as rescheduling or restructuring of loans and settlement routes for struggling borrowers.

Complaints

Where do I complain if my application is stuck? First the branch and the bank’s grievance officer, then the Lead District Manager and the District Level Credit Committee. If the bank does not reply within 30 days, go to the RBI complaint portal, cms.rbi.org.in. See the grievance route.

What is the Stand-Up India helpline? The portal has published toll-free 1800-180-1111. Check the portal’s contact page for current details.

Can RBI overturn a loan rejection? The RBI ombudsman handles service failures, such as delay or no reason given. It does not overrule a bank’s commercial decision on whether to lend.

Other schemes

How is Stand-Up India different from Mudra? Mudra gives loans up to ₹10 lakh (₹20 lakh under Tarun Plus) to any eligible individual. Stand-Up India gives loans above ₹10 lakh to ₹1 crore to women, SC and ST founders for new businesses. See the comparison.

How is it different from PMEGP? PMEGP gives a subsidy of up to 35% on new micro units with projects of up to ₹50 lakh (manufacturing) or ₹20 lakh (services). Stand-Up India gives no subsidy but covers larger loans.

Is Stand-Up India the same as Start-Up India? No. Start-Up India supports innovative, technology-led startups of any founder category. Stand-Up India is a bank loan scheme for women, SC and ST entrepreneurs.

Back to the Stand-Up India overview.

Last reviewed: 12 November 2026.