Stand-Up India Scheme 2026: Status and What to Use Instead

The Stand-Up India scheme, which gave SC/ST and women entrepreneurs bank loans of ₹10 lakh to ₹1 crore for a first enterprise, is no longer open for new loans. It ran from April 2016 to 31 March 2025, and in March 2026 the Finance Minister told Parliament that a revamped version is being redrafted. As of October 2026 we could not find an official notification of the new scheme, so if you are an SC, ST or woman entrepreneur today, the practical route is a CGTMSE-backed MSE loan, PMEGP or Mudra, explained below.

Some bank and aggregator pages still show Stand-Up India as open, and a few claim it has been "relaunched". We checked the Department of Financial Services (DFS) statements in Parliament and PIB, and the official position as of October 2026 is the one above. Ask your bank in writing which scheme it can sanction under before you prepare a project report.

What happened to Stand-Up India

Loans sanctioned before the scheme ended continue on their original terms.

How the old scheme worked (for reference)

This helps you compare the new scheme when it is notified.

• Who: SC/ST and/or women entrepreneurs aged 18 or above. For a company or firm, at least 51% of the shareholding and control had to be with an SC/ST or woman entrepreneur.
• What: Greenfield (first-time) enterprises in manufacturing, services, trading or agri-allied activities.
• Loan: ₹10 lakh to ₹1 crore as a composite loan (term loan plus working capital), expected to cover up to 75% of the project cost.
• Own contribution: at least 10% of the project cost.
• Rate: the bank's lowest rate for that rating category, capped at MCLR + 3% + tenor premium.
• Repayment: up to 7 years with a moratorium of up to 18 months.
• Security: primary security, plus collateral or a guarantee under the Credit Guarantee Fund for Stand-Up India Loans (CGFSIL), as decided by the bank.
• Portal: standupmitra.in, which connected applicants with banks and handholding agencies.

Coverage numbers in government replies show the scheme mostly reached women: as of January 2025, loans had been sanctioned to about 1.95 lakh women entrepreneurs, against about 49,000 SC and 16,000 ST entrepreneurs.

What to use instead in 2026

None of these is labelled for SC/ST or women only, but each has specific benefits for them.

Two caveats: PMEGP's approval for the 2021-26 cycle ended on 31 March 2026, and the government said continuation was under appraisal, so confirm on the KVIC portal that applications are open. And CGTMSE cover depends on the bank's own credit appraisal: it removes the need for collateral, not the need for a viable plan. See our guides to CGTMSE collateral-free loans and the PMEGP loan subsidy.

Worked example: a ₹30 lakh first enterprise today

A woman entrepreneur in a city wants to start a small garment unit with a total project cost of ₹30 lakh. Under the old Stand-Up India she would have brought at least ₹3 lakh and asked for a composite loan. Here are two routes available now, with an illustrative 11% interest rate and 7-year (84-month) repayment.

Route A: bank term loan with CGTMSE cover

• Own contribution 10% = ₹3,00,000; bank loan = ₹27,00,000
• EMI = P × r × (1 + r)^n / [(1 + r)^n − 1], with r = 11 / 12 / 100 = ₹46,231
• Total interest over 7 years = about ₹11,83,369
• Plus an annual guarantee fee on the loan, which the bank may pass on; women borrowers get a 10% discount on the fee rate

Route B: PMEGP (if open), special category, urban

• Own contribution 5% = ₹1,50,000; bank loan = ₹28,50,000
• Subsidy 25% of ₹30,00,000 = ₹7,50,000, held as a deposit and later adjusted against the loan
• Interest-bearing debt = ₹28,50,000 − ₹7,50,000 = ₹21,00,000
• EMI on ₹21,00,000 = ₹35,957; total interest = about ₹9,20,398

The PMEGP route is simplified (the subsidy is adjusted only after three years, and the bank sets the schedule), but it shows why a capital subsidy saves more than a guarantee. Check your own numbers in the EMI calculator.

How to apply now, step by step

1. Register your business on Udyam (free). It records you as a micro or small enterprise and lets you prove women or SC/ST ownership. See Udyam registration benefits for MSME loans.
2. Prepare a project report with machinery quotations, working capital needs and realistic sales.
3. Check your credit report before you approach a bank; a past default is a common reason for rejection. Use our guide on how to check your CIBIL score free.
4. Apply on the Jan Samarth portal or at a branch for a CGTMSE-covered MSE loan, or on the KVIC PMEGP portal if it is open.
5. Ask for the Key Fact Statement and check the interest rate, guarantee fee and whether any collateral is being asked for on a loan up to ₹20 lakh.

Common reasons for rejection

• Weak project report: sales that do not cover the EMI with a margin.
• Credit history problems: a written-off or settled loan.
• Existing enterprise presented as new for a scheme that needs a greenfield unit (old Stand-Up India, PMEGP).
• Ownership not clearly with the woman or SC/ST promoter, which matters for the higher CGTMSE cover and fee discount.

How to complain

If a bank sits on your application or asks for collateral it is not allowed to take, complain in writing to the branch and then the bank's grievance officer. RBI requires credit decisions on MSE loans up to ₹25 lakh within 14 working days. If there is no satisfactory reply in 30 days, file at cms.rbi.org.in. For delays by a government office, use pgportal.gov.in. Never pay an agent who promises a "Stand-Up India sanction" for a fee; the scheme is closed to new loans.

Key takeaways

• Stand-Up India stopped new sanctions on 31 March 2025; a revamp was announced but had not been notified as of October 2026.
• The Budget 2025-26 promise of term loans up to ₹2 crore for first-time women, SC and ST entrepreneurs is the likely successor; watch PIB and the DFS website.
• Today, use a CGTMSE-backed MSE loan (up to 90% cover for women-led units), PMEGP if open, or Mudra.
• Banks cannot take collateral on MSE loans up to ₹20 lakh sanctioned from 1 April 2026.
• Existing Stand-Up India borrowers continue on their sanctioned terms.