Stand-Up India

A greenfield enterprise means a brand-new business being started for the first time in a particular activity. If the same promoter already runs a business in the same sector, that new unit is not considered greenfield and will not qualify. The scheme is designed for first-time entrepreneurs in a given activity — it does not fund expansion of existing operations.

Banks cannot charge more than MCLR + 3% on Stand-Up India loans, which typically works out to 9–11% p.a. The repayment tenure is 7 years with a moratorium period of up to 18 months, during which only interest is payable.

Not for the same project, but technically possible for two separate projects. PMEGP funds a manufacturing or service unit with a margin money subsidy, while Stand-Up India provides a composite term loan. Using both for the same business would mean double-financing the same asset, which banks flag as a risk. Consult your CA or district MSME office for your specific situation.

Yes — Stand-Up India is mandated across all scheduled commercial banks. Every branch is required to facilitate at least one SC/ST borrower and one woman borrower under this scheme. However, SIDBI's standupmitra.in portal is the faster route: it lets you register online and connects you to the nearest eligible branch, avoiding the walk-in queue at a retail branch that may not handle the scheme regularly.

Collateral may be required depending on the bank and loan size. Unlike PMEGP (which is collateral-free under CGTMSE for amounts up to ₹10 lakh), Stand-Up India does not come with automatic CGTMSE cover. However, borrowers can separately apply to CGTMSE to get collateral-free cover on their Stand-Up India loan — check with the sanctioning bank at the time of application.

Udyam Registration is not a stated eligibility condition for Stand-Up India. However, banks processing the loan will typically ask for it as part of the KYC and MSME status proof, especially for manufacturing units. Getting Udyam registered before applying speeds up the bank's appraisal significantly.

If the bank rejects the application, request a written reason — banks are required to provide one. Common rejection causes are: lack of project viability in the business plan, NPA status with any bank, or the enterprise not qualifying as greenfield. A CA-reviewed project report and a clean credit history are the two things that move most files forward on the second attempt.