Understanding the Stand-Up India initiative - features and benefits

Understanding the Stand-Up India initiative - features and benefits

9 January, 2025

Synopsis: 

  • The Stand-Up India program encourages Scheduled Castes (SC), Scheduled Tribes (ST), and women to become entrepreneurs by granting loans worth ₹10 lakh to ₹1 crore.  
  • The initiative is backed by the Indian government and executed by the Finance Ministry.  
  • All branches of scheduled commercial banks offer the subsidy in the Stand-Up India initiative to at least one SC/ST candidate and at least one women entrepreneur.  


The Indian government has introduced many initiatives to help citizens become entrepreneurs. The Stand-Up India program is one such initiative. It focuses on supporting minorities, such as SCs, STs, and women, by facilitating loans.  

The Stand-Up India initiative is different from the Startup India scheme, and one must not be confused. Under the Stand-Up India subsidy, SC/ST and women entrepreneurs can obtain a bank loan of ₹10 lakh to ₹1 crore to start a greenfield enterprise.  

Previously, the scheme’s benefit was offered to at least one SC or ST individual and at least one woman applicant per bank branch. However, the benefit now extends to eligible enterprises as well.  

This post discusses the Stand-Up India scheme features and benefits to help you gain more knowledge about it.  

Features of the Stand-Up India scheme 

Here are some key features of the Stand-Up India scheme subsidy:  

  • The Stand-Up India loan subsidy is an initiative by the financial services department, including the Finance Ministry. Its objective is to promote entrepreneurship amongst minorities. 

  • The scheme’s loan limit ranges from ₹10 lakh to ₹1 crore. Applicants can obtain the amount to start a new enterprise or business.  

  • The best Stand-Up India benefit is that each bank branch assists two entrepreneurial projects, distinguished for women entrepreneurs and SC and ST candidates.  

  • The scheme’s loan type is a composite loan, which combines Working Capital and Term Loans.  

  • The loan’s repayment period is seven years. The maximum moratorium period is 18 months.  

  • The loan amount limit is up to 85% of the project cost. The limit changes if the borrower contributes over 15% to the project cost.  

  • The Stand-Up India subsidy scheme’s interest rate is the lowest applicable by the bank for that category. It is not more than the base rate of MCLR + 3% + tenor premium.  

  • Applicants are given a special RuPay Debit Card for convenient individual withdrawal.  

  • If the borrower contributes a minimum of 10% of the project’s cost, 15% margin money is available under eligible state or central government schemes.  

Benefits of the Stand-Up India scheme 

The objective of every government scheme and initiative is to benefit the citizens. Here’s a look at the benefits of the Stand-Up India subsidy:  

  • The Stand-Up India scheme benefits SCs, STs, and women. These categories have traditionally been sidelined.  

  • The initiative motivates SCs, STs, and women to think of new business ideas, become entrepreneurs, and reduce unemployment.  

  • The Stand-Up India scheme subsidy covers a major portion of the project, reducing the burden and pressure on the entrepreneurs.  

  • The time to repay the Stand-Up India loan subsidy is seven years, which is sufficient for borrowers and does not stress them out.  

  • Apart from financial assistance, the entrepreneur support scheme gives borrowers handholding support in skill development, training, application filling, project report preparation, subsidy schemes, work shed/utility support services, etc., through different agencies. 

  • Depending on specific conditions, the applicant is eligible for a subsidy under the Differential Rate of Interest (DRI) scheme.  

  • The applicant can access loan-related information, registration details, and loan application status on the Stand-Up India portal.  

  • The subsidy for the Stand-Up India scheme promotes financial and social inclusion and can promote other government initiatives like ‘Make in India’ and ‘Skill India.’ 

The Stand-Up India initiative benefits different sections of society, enabling them to start their entrepreneurial journey. It eases the process of obtaining loans of up to ₹10 lakh to ₹1 crore. You can apply for the loan online from the scheme’s portal, Jan Samarth.  

HDFC Bank’s staff assists existing HDFC Bank customers in registering on the Jan Samarth portal. This service makes the online loan application and document submission process easier. You can visit the nearest HDFC Bank branch to learn more about the scheme and start your application.  

Disclaimer: *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. 

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