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Difference Between Stand-Up India and Start-Up India Schemes

By Tata Capital
29 December 2025
9 mins read
3235

Introduction

The Government of India launches schemes from time to time for the benefit and upliftment of a particular industry or group of citizens within the country. Here is everything one needs to know about two such schemes – Stand-up India and Start-up India Schemes.

What is Stand Up India Scheme? Objectives & Features

Stand-Up India scheme is a scheme initiated by the Government of India, keeping women, scheduled castes and scheduled tribes in mind. It has been launched to provide finance and business opportunities to these categories. These individuals can avail Stand-up India loans anywhere between 10 lakhs to 1 crore.

This scheme promotes the establishment of greenfield enterprises in the form of a manufacturing unit, agriculture sector or trading purpose. A greenfield enterprise refers to a first venture of the eligible person in the aforementioned sectors.

Under this scheme, the funds are transferred directly to the recipient’s account. The Stand-up India loan provides 85% of the project funding; the remaining 15% must be borne by the eligible individuals. While the Stand-up India loan interest rate is kept minimal, the tenure of the loan is typically 7 years. However, an extension of 18 months may be given in some cases.

Eligibility for Stand-Up India Scheme

Any scheduled caste or scheduled tribe and / or woman entrepreneur is eligible for this scheme. However, such a person should be above 18 years of age.
Stand-up India Loans can be used only for greenfield projects, i.e. it has to be entrepreneurs’ first project in the manufacturing, trading or agriculture sector.
In the case of a joint venture or partnership, the applicant should hold a 51% stake and should have the controlling stake of the company.
Borrowers should have a clean record, meaning the applicant should not be a defaulter in any bank or financial institution.

What is Start Up India Scheme? Objectives & Features

The Start-up India Scheme is an initiative by the Indian Government to help young entrepreneurs develop unique business ideas and help them establish or grow their business. Under this scheme, the government helps a start-up or individual by providing financing with tax exemptions. It also ensures that creating a start-up is a smooth and straightforward process. The only condition to be considered is that the business should qualify as a Start-up.

Start-up India Scheme Eligibility

The company should be registered as a private limited, a registered partnership firm or a limited liability partnership.
The company should not be registered for more than 10 years.
The company’s annual turnover should not exceed over 100 crores for any financial year since its registration.
The company should not be formed by reconstruction or splitting up an old business.
The company should be a scalable business model and should be an innovative idea.
The company should consistently work towards improving the innovative product.

Benefits provided under the Start-up India scheme:

Simple online application

The Government of India has launched a website and an app for registration under this scheme. Eligible applicants can simply fill out a form and upload the necessary documents to apply.

Cost reduction

The government provides lists of facilitators for trademarks and patents. The facilitator fees are borne by the Government, while the Start-up bears the statutory fees. While filing patents, start-ups are given a reduction of 80% in the cost.

Fund allocation

The government has set Rs 10,000 crore fund as venture capital for eligible start-ups.

Tax-exemption

Eligible Start-ups will be exempted from income tax for 3 years, provided they hold the certificate from Inter-Ministerial Board (IMB).

Research and development facility

7 new research parks have been set up to help start-ups in the R&D sector.

Tax-exemption for investors

People investing their capital in venture funds will get exempted from capital gains.

Liberty to choose your investor

Eligible Start-ups have the option to choose between various venture capitalists.

Stand Up India vs Start Up India: Key Differences

The difference in the purpose of the schemes.

The Stand-up India scheme provides business opportunities to the minority groups (scheduled castes and scheduled tribes) and women entrepreneurs. On the other hand, Start-up India provides business opportunities to companies that fall in the category of Start-up and may not generate adequate revenue.

The difference in the benefits of the schemes.

Stand-up India scheme loan covers 85% of the project, and individuals can apply for loans between 10 lakhs to 1 crore. Whereas in the Start-up India scheme, the start-ups get various financing options to fund their company and are also exempted from tax.

The difference in eligibility

The eligibility for the Stand-up India scheme is that the person applying should belong to SC/ST category or should be a woman entrepreneur. The Start Up India scheme eligibility requires the company to be recently founded with an innovative idea and the annual turnover should not be more than 100 crores.

The Government is supporting a new age of self-reliant India by promoting entrepreneurs and innovators. Tata Capital supports the government’s mission and provides a wide range of business loan offerings for start-ups and new entrepreneurs. Check your business loan eligibility and get started today!

Eligibility Comparison: Stand Up India vs Start Up India

Understanding Stand Up India scheme and Start Up India schemes is crucial for entrepreneurs. Here’s a clear comparison of eligibility criteria for both schemes:

Basis of Differentiation	Stand Up India Scheme	Start Up India Scheme
Target Entrepreneurs	Scheduled caste, scheduled tribe, and/or women entrepreneurs above 18 years.	Any entrepreneur forming a private limited company, partnership firm, or LLP.
Business Stage	Only greenfield projects (first project in manufacturing, trading, or agriculture).	New businesses registered within the last 10 years, not formed by splitting old businesses.
Ownership Requirement	In joint ventures/partnerships, applicant must hold ≥51% controlling stake.	No specific ownership requirement; company must have scalable and innovative business model.
Financial/Legal Standing	Must have a clean credit record; no defaulters allowed.	Annual turnover should not exceed ₹100 crore in any financial year; focus on innovation and scalability.

This table simplifies the difference between Stand Up India and Start Up India, helping you understand Stand Up India vs Start Up India eligibility at a glance.

Both schemes aim to boost entrepreneurship, but the choice depends on your profile, business type, and growth potential. Knowing the nuances of Start Up India and Stand Up India can help Jaipur entrepreneurs plan strategically for funding and business expansion.

Benefits Comparison: Finance, Tax, & Support Differences

When exploring Stand Up and Start Up India, understanding the benefits each scheme offers is key. In terms of finance, what is Stand Up India scheme primarily offers bank loans ranging from ₹10 lakhs to ₹1 crore, targeting SC/ST and women entrepreneurs for greenfield projects. In contrast, Start Up India provides a broader set of funding options, including government-backed funds, angel investors, and venture capital support, catering to innovative startups across sectors.

On the tax front, Start Up India and Stand Up India schemes differ significantly. Startups enjoy tax exemptions on profits for three consecutive years and exemptions on capital gains, while Stand Up India loans focus more on financial accessibility rather than tax incentives.

Regarding support, Stand Up India vs Start Up India shows a clear distinction: Stand Up India emphasises mentoring and guidance for first-time entrepreneurs in manufacturing, trading, or agriculture. Start Up India offers extensive incubation, networking, and skill development programs for scalable, innovative businesses.

By comparing the difference between Stand Up India and Start Up India, entrepreneurs can choose the scheme that best aligns with their business stage, sector, and growth goals.

Loan Process Under Stand Up India Scheme (Step by Step)

Understanding what is Stand Up India scheme and its objectives makes the application process smoother. Designed to promote entrepreneurship among women and SC/ST communities, this scheme differs from typical business loans and is often compared with the Start Up India initiative.

While Stand Up and Start Up India share the goal of fostering entrepreneurship, their eligibility criteria, target audience, and funding structures vary, making it essential to understand the difference between Stand Up India and Start Up India before applying.

Here’s a simple step-by-step guide to the loan process:

Step 1: Visit the official Stand Up India portal.

Step 2: Select the option for Stand Up India loan.

Step 3: Fill in the application form with personal, business, and financial details.

Step 4: Upload the required documents in the prescribed format.

Step 5: Submit the application for verification.

Step 6: Upon approval, the sanctioned funds are credited to the borrower’s account.

Following these steps helps ensure a smooth experience when availing of the scheme.

Required Documents for Stand Up India Scheme

To apply under the Stand Up India Scheme, applicants must prepare certain documents to ensure a smooth approval process. Understanding what is Stand Up India scheme and how it differs from other initiatives can help you navigate the application efficiently.

We’ve already addressed Stand Up India vs Start Up India previously. Now, let’s explore the documents required for Stand Up India Scheme:

Identity proof: Aadhaar card, PAN card, voter ID, or passport
Address proof: Utility bills, rental agreement, or ration card
Caste certificate: Applicable for SC/ST applicants
Business plan or project report outlining your proposed venture
Bank statements for the last six months
Proof of business premises (if available)

Being prepared with these documents under the Stand Up and Start Up India framework ensures faster processing and a smoother loan journey.

Application Process for Start Up India Scheme

Applying under the Start Up India scheme is a streamlined and fully online process, making it easier for entrepreneurs to access government support and resources. Understanding the application process also helps differentiate between Stand Up India vs Start Up India, as both schemes target business growth but cater to different needs.

Here’s how you can get started with Start Up India scheme:

Register on the Startup India Portal: Visit the official website and click the ‘Register’ button. Provide basic details like name, email ID, mobile number, and password.
Verify with OTP: Enter the OTP sent to your email and submit additional information such as startup type, stage, and founder details.
Create Startup Profile: Once submitted, your Startup India profile is ready.
Explore Programs and Benefits: Access incubation programs, mentorship opportunities, funding options, learning resources, and government schemes directly from the portal.

Now, you’re one step closer to leveraging the benefits under Stand Up and Start Up India programs.

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FAQs

What is Stand Up India Scheme and how is it different from Start Up India?

The Stand Up India Scheme provides loans to women and SC/ST entrepreneurs for setting up businesses. Start Up India supports all startups with funding, mentorship, and incubation. Stand Up India vs Start Up India highlights these focus differences above.

Who is eligible for Stand Up India vs Start Up India schemes?

The Stand Up India scheme targets SC, ST, and women entrepreneurs above 18 years starting their first greenfield project. Start Up India is open to any new business registered within 10 years with a scalable, innovative model.

Can a woman entrepreneur apply for both Stand Up India and Start Up India?

Yes, a woman entrepreneur can apply for both Stand Up India and Start Up India schemes, provided she meets the eligibility criteria for each, allowing access to funding, mentorship, and other support.

What type of business is covered by Stand Up India but not Start Up India?

Stand Up India primarily supports SC/ST and women entrepreneurs to start greenfield enterprises in manufacturing, services, or trading. On the other hand, Start Up India focuses on innovative startups across sectors.

What are the key financial benefits under Stand Up India scheme?

Under the Stand Up India scheme, key financial benefits include easy access to bank loans for SC/ST and women entrepreneurs, funding for greenfield projects, and support for business growth.

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