Stand Up India Scheme Rules: Loan Eligibility & Upgraded Limits

Stand Up India Scheme

The original timeline for the Stand-Up India framework run concluded in 2025. Following extensive departmental reviews of its socioeconomic impact, the government is introducing an updated, revamped version designed to address evolving digital credit parameters and modern small-business ecosystems.

Why in the News?

Prime Minister acknowledged Stand-Up India’s role in empowering the SC/ST communities, women, and job creation at the completion of 7 years of the Scheme

Quick Facts

Purpose: To empower every Indian & enable them to stand on their own feet

Type: Central Sector Scheme

Enterprises covered: Greenfield enterprise in manufacturing, services, Agri-allied activities or the trading sector

Refinancing agency: Small Industries Development Bank of India (SIDBI).

Objective Of Stand Up India Scheme

To facilitate bank loans between Rs.10 lakh and Rs. 1 Crore to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

Salient Features of Stand Up India Scheme :

Loan extending entity:

Loans under the Scheme are extended by all the branches of the Scheduled Commercial Banks as per commercial parameters.

Loan security:

Besides primary security, the loan may be secured by collateral security or guarantee of CGFSI as decided by the banks.

To extend Collateral free coverage the government has set up Credit Guarantee Fund for Stand Up India (CGFSI).

However, Government does not allocate funds for loans under the Scheme

Rate of Interest (RoI):

RoI would be the lowest applicable rate of the bank for that category (rating category) not to exceed Bank’s base rate (MCLR) +3%+ tenor premium.

Loan repayment:

The loan is repayable in 7 years with a maximum moratorium period of 18 months

Stand-up Connect Centres:

The Scheme also envisages extending handholding support to the potential borrowers.

The offices of SIDBI and NABARD are designated as Stand-up Connect Centres, who will arrange for the support required.

Convergence with other scheme:

This scheme also provides for convergence with Central/State Government scheme

Sukanya Samriddhi Yojana (SSY) Rules, Interest Rate & Benefits

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