Stand-Up India Loan: A Guide for Women and SC/ST Entrepreneurs in Bihar

If you are a woman, or from a Scheduled Caste or Scheduled Tribe, and want to start a business bigger than a small shop, the Stand-Up India loan was designed for you. It helps first-time entrepreneurs get bank loans of ₹10 lakh to ₹1 crore for a new enterprise, with online handholding support. This guide explains eligibility, how much you must bring yourself, how to apply, and what to check about the scheme's current status in 2026.

What is the Stand-Up India scheme?

Stand-Up India was launched on 5 April 2016 by the Department of Financial Services. Every branch of a scheduled commercial bank was asked to support at least one SC or ST borrower and at least one woman borrower with a loan between ₹10 lakh and ₹1 crore for a greenfield (brand new) enterprise.

The loan is a composite loan: it can cover both the term loan (machinery, interiors, equipment) and working capital (stock, raw material, running costs). SIDBI runs the online portal standupmitra.in, which connects applicants with banks and with training and mentoring agencies.

As per government data, lakhs of accounts have been sanctioned since 2016, and a large majority of them went to women entrepreneurs.

Current status: read this first

The Department of Financial Services states that the scheme was approved up to 31 March 2025, in line with the 15th Finance Commission period. In the Union Budget 2025-26, the government announced a new scheme for 5 lakh first-time women, SC and ST entrepreneurs with term loans of up to ₹2 crore over five years, built on lessons from Stand-Up India.

What this means for you: before preparing your file, ask your bank branch or check standupmitra.in and jansamarth.in to see which scheme is currently accepting applications and on what terms. The process described below (project report, own contribution, greenfield rule) is very likely to remain similar, so your preparation won't be wasted.

Who is eligible for a Stand-Up India loan?

• Women of any caste or community, or SC/ST men and women
• Age 18 years or above
• The enterprise must be greenfield, meaning your first venture in that line of activity
• Allowed sectors: manufacturing, services, trading, and activities allied to agriculture such as dairy, pisciculture, poultry, food processing and agri-clinics (crop loans are not covered)
• For a partnership or company, at least 51% shareholding and controlling stake must be held by an SC/ST person or a woman
• You must not be a defaulter with any bank or financial institution

Trading is allowed here, which is a big difference from PMEGP. A woman in Bhagalpur can use Stand-Up India to open a wholesale silk fabric outlet, which PMEGP would not allow.

How much do you need to invest yourself?

Stand-Up India reduced the margin money burden in 2019:

• Margin money can be up to 15% of the project cost
• At least 10% of the project cost must come from your own pocket
• The remaining margin (up to 5%) can come from another central or state scheme that gives margin money support
• The bank loan can therefore cover up to about 85% of the project cost

Working capital up to ₹10 lakh can be given as a cash credit or overdraft limit, and borrowers receive a RuPay debit card to draw it.

Interest rate, repayment and collateral

• Interest rate: the lowest applicable rate of the bank for that category, not exceeding the bank's base rate (MCLR) + 3% + tenor premium. Actual rates vary by bank and your credit profile.
• Repayment: up to 7 years, which can include a moratorium of up to 18 months.
• Security: the loan is secured by the assets you create (machines, stock). It can also be covered under the Credit Guarantee Fund for Stand-Up India Loans (CGFSI), so collateral may not be needed. Banks decide case by case, so ask. Our guide to collateral-free loans under CGTMSE explains how such guarantees work.

Worked example: a bakery in Muzaffarpur

Rekha, a woman in Muzaffarpur, wants to open a bakery unit with a small retail counter.

• Oven, mixer, proofer, display counters: ₹10,50,000
• Shop interiors and electrical work: ₹3,00,000
• Working capital (flour, sugar, packaging, first month's wages): ₹4,50,000
• Total project cost: ₹18,00,000

Financing:

• Own contribution (10%): ₹1,80,000
• If she gets no other margin support, she brings 15%: ₹2,70,000
• Bank loan (85%): ₹15,30,000, split into a term loan and a working-capital limit

At an illustrative interest rate of 10%, repaying ₹15.3 lakh over the 66 months left after an 18-month moratorium means an EMI of roughly ₹30,000 a month. Her project report must show that the bakery can comfortably earn that after all costs and her own household drawings. Our guide on how to write a business plan for a bank loan shows how to do that with DSCR.

Documents for a Stand-Up India loan

• Aadhaar, PAN and photographs of the applicant (and all partners/directors)
• Caste certificate for SC/ST applicants
• Address proof of residence and business premises
• Rent agreement or ownership papers for the unit site
• Project report with cost break-up, quotations and 5-year projections
• Partnership deed or company documents, if applicable
• Bank statements (6-12 months) and ITR, if you have any
• Udyam registration once the enterprise is set up

How to apply for Stand-Up India: step by step

1. Visit standupmitra.in and register as a borrower. The portal asks whether you need handholding.
2. If you choose "trainee borrower", the portal links you to support agencies for skill training, EDP, mentoring, project report help and help with licences. In Bihar these include District Industries Centres, lead banks and training institutes.
3. If you are "ready borrower", fill in business details, loan amount and preferred bank, and the application goes to that bank.
4. You can also apply directly at any scheduled commercial bank branch, or contact the Lead District Manager (LDM) of your district. Every district in Bihar, from Patna to Purnia, has an LDM office, usually at the lead bank.
5. The bank checks your credit report, visits the site and appraises the project.
6. On sanction, you sign the documents, bring in your margin, and the bank disburses in stages.

Before applying, check your credit report. Even a small old overdue can delay the file. Our CIBIL score guide for business owners explains what banks look at.

Common mistakes to avoid

• Applying for an existing business. Stand-Up India is for new enterprises only.
• Using a woman's name only on paper while someone else runs the business. Banks check who is actually in control.
• Asking for less than ₹10 lakh. Smaller needs are better met through a Mudra loan.
• Not keeping 10% own contribution ready in the account.
• Overestimating sales. A bakery in a Tier-3 town won't sell like one on Patna's Boring Road in the first year.

Stand-Up India vs PMEGP vs Mudra

• Mudra: up to ₹20 lakh (Tarun Plus), any micro business including trading, no subsidy.
• PMEGP: up to ₹50 lakh (manufacturing) or ₹20 lakh (service), 15-35% subsidy, no pure trading. See our PMEGP loan and subsidy guide.
• Stand-Up India: ₹10 lakh to ₹1 crore for women and SC/ST first-time entrepreneurs, trading allowed, no subsidy but lower margin and handholding.

Hindi readers can read स्टैंड-अप इंडिया लोन: महिला और SC/ST उद्यमी.

Next steps

Confirm with your bank or the LDM which scheme is open right now, prepare a realistic project report, and keep your own contribution ready. You can find nearby banks and finance consultants on our Rohtas banking and financial services page. Once your business starts, list your business free on Bihar Directory so customers can call, WhatsApp and find directions to you.

This is general information, not legal or financial advice. Confirm current scheme rules with your bank, the Lead District Manager or standupmitra.in.