What’s Stand-Up India financing scheme? Benefits, how to apply online, documents required after Cabinet extension nod

The Union Cabinet on Wednesday approved the continuation of the Stand-Up India scheme for another five years, extending it until March 31, 2031.

The scheme aims to provide financial assistance to at least 2.5 lakh additional entrepreneurs from women, Scheduled Castes (SCs) and Scheduled Tribes (STs) over the next five years. According to the Press Information Bureau (PIB), the government has also approved a credit guarantee corpus of ₹4,111 crore to support lending under the programme.

Launched in April 2016, the initiative has facilitated loans to more than 2.75 lakh women and SC/ST entrepreneurs so far. But what exactly does the scheme offer, who can apply and what documents are required? Here's everything you need to know.

The Stand-Up India scheme is a government-backed credit initiative designed to encourage entrepreneurship among women and SC/ST communities by facilitating bank loans for setting up new businesses.

Under the scheme, eligible entrepreneurs can obtain loans ranging from above ₹10 lakh to ₹1 crore for establishing greenfield enterprises, which means businesses being set up for the first time by the beneficiary.

According to the Ministry of Finance, the scheme covers manufacturing, services, trading and activities allied to agriculture. Loans are provided through Scheduled Commercial Banks.

The scheme offers several financial and business-related benefits to eligible entrepreneurs.

1. Loans up to ₹1 crore: Eligible borrowers can access loans exceeding ₹10 lakh and up to ₹1 crore to establish a new enterprise.

2. Composite loan facility: Applicants can seek a composite loan combining term-loan and working-capital requirements, or a term loan, depending on the project's requirements.

3. Credit guarantee coverage: The Cabinet-approved framework provides credit guarantee coverage of 85% of the loan amount. The standard guarantee fee has been set at 0.50%, according to the PIB.

4. Repayment flexibility: Under the scheme's existing framework, the loan repayment period can extend up to seven years, including a moratorium of up to 18 months.

5. Margin money assistance: Margin money support of up to 15% of the project cost can be arranged through convergence with eligible Central and state government schemes. However, the borrower must contribute at least 10% of the project cost from their own funds.

The scheme is available to women and SC/ST entrepreneurs aged 18 years and above who want to establish a greenfield enterprise.

For non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an eligible woman or SC/ST entrepreneur.

The applicant should not be in default with any bank or financial institution. The proposed business must fall under manufacturing, services, trading or agriculture-allied activities.

Eligible applicants can explore the application process through the following steps:

• Visit the official Stand-Up India portal.

2. Register as a prospective borrower and provide basic details, including the applicant's category, business activity, location and proposed investment.

3. Select whether you require handholding assistance or are ready to approach a bank for financing.

4. Provide details of the proposed enterprise, project cost, own contribution and working-capital requirements.

5. Identify the appropriate lending bank and submit the loan application along with the required documents.

6. Track the application and respond to any additional information or documentation requests from the bank.

Applicants can also explore the application facility through the government's JanSamarth portal.

While the final checklist may vary depending on the lending bank and the nature of the business, applicants should generally keep the following documents ready:

• Identity proof: Aadhaar card, PAN card, passport or voter ID.

2. Address proof: Electricity bill, telephone bill, passport or other accepted residence documents.

3. Category proof: SC/ST certificate, wherever applicable.

4. Business documents: Partnership deed, certificate of incorporation or memorandum and articles of association, depending on the business structure.

5. Project report: Details of the proposed business, estimated investment, machinery, suppliers, expected revenue and projected expenses.

6. Financial documents: Bank statements, income-tax returns and assets and liabilities statements, wherever required.

7. Business premises proof: Rent agreement, lease deed or ownership documents.

8. Registration documents: Udyam and GST registration, wherever applicable.

9. Promoter contribution proof: Evidence of the applicant's own investment in the proposed enterprise.

For larger loan applications, banks may also seek detailed project reports, projected balance sheets, details of existing borrowings and financial statements of associated businesses.

Applicants should confirm the latest documentation requirements with their selected bank before submitting the application, as the checklist is indicative and may differ between lenders.

Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X

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