India’s economic growth story is incomplete without the empowerment of underrepresented communities. The Stand-Up India Scheme is a flagship initiative by the Government of India that promotes inclusive entrepreneurship among Scheduled Castes (SCs), Scheduled crews (STs), and women entrepreneurs. Launched in April 2016, the scheme aims to provide financial support and facilitate a sustainable entrepreneurial ecosystem that drives both economic and social upliftment.
What is the Stand-Up India Scheme?
The Stand-Up India Scheme is tailored to offer bank loans between ?10 lakh and ?1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. The term “greenfield” indicates a new business venture in the manufacturing, services, agri-allied or trading sector. The scheme is managed by the Department of Financial Services (DFS), Ministry of Finance, Government of India.
The core mission is to create a level playing field by addressing the financial hurdles faced by marginalized groups who wish to enter the world of entrepreneurship.
Eligibility Criteria for Stand-Up India Scheme
To avail of benefits under the Stand-Up India Scheme, the following conditions must be met:
- The applicant must be either a Scheduled Caste (SC), Scheduled crew (ST), or a woman entrepreneur.
- The applicant must be 18 years or older.
- The loan must be used for a greenfield project in manufacturing, services, trading, or agri-allied activities.
- In case of a non-individual enterprise, at least 51% shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.
- The applicant should not be in default to any bank or financial institution.
Objectives and Importance of the Stand-Up India Scheme
The Stand-Up India Scheme is not merely a loan disbursal program—it is a bold step towards inclusive nation-building. The key objectives are:
- Bridging the gap in access to credit for SC/ST and women entrepreneurs.
- Fostering job creation by empowering first-time business owners.
- Encouraging innovation and self-reliance among underrepresented groups.
- Promoting inclusive economic development and reducing socio-economic disparities.
By offering structured support and access to capital, the scheme enhances the capacity of new entrepreneurs to contribute meaningfully to the national economy.
Loan Structure and Repayment Terms
The Stand-Up India Scheme provides composite loans (including term loan and working capital) between ?10 lakh to ?1 crore. These loans can be used for business setup, acquisition of assets, working capital needs, and more.
Key features of the loan include:
- Interest rate: Competitive rates, not exceeding MCLR + 3% + tenor premium.
- Repayment period: Maximum of 7 years, with a moratorium period of up to 18 months.
- Collateral: The loan may be secured through credit guarantee under the Credit Guarantee Scheme for Stand-Up India loans.
The flexible and favorable repayment structure eases the burden of loan servicing for new entrepreneurs.
Role of SIDBI and Handholding Support
To ensure effective implementation, the Small Industries Development Bank of India (SIDBI) has developed an extensive Stand-Up India portal. The portal serves as a digital bridge connecting entrepreneurs with banks, training centers, and other handholding agencies.
Support includes:
- Preparation of business plans
- Skill development training
- Financial literacy programs
- Legal and operational guidance
This handholding support is crucial for aspiring entrepreneurs who lack prior business experience.
Benefits of the Stand-Up India Scheme
The Stand-Up India Scheme stands out for its inclusive and development-oriented benefits:
- Empowers women and marginalized communities to become job creators.
- Facilitates access to formal banking channels, often denied to SC/ST and women entrepreneurs.
- Drives regional and rural development by promoting businesses across diverse sectors.
- Enhances credit culture and strengthens the micro and small enterprise ecosystem.
With over 1.5 lakh loans sanctioned since its inception, the scheme has made remarkable progress in reshaping India’s entrepreneurial landscape.
Steps to Apply for the Stand-Up India Scheme
Applying for the Stand-Up India Scheme involves a systematic and guided approach:
- Visit the official portal: www.standupmitra.in
- Register and fill in details about the proposed business.
- Select handholding support if needed—this includes mentorship, training, and guidance.
- Choose your bank and submit the application for loan processing.
- Track the application status online through the portal.
Applicants can also visit their nearest bank branch or contact District Industries Centres (DICs) for in-person assistance.
Sectors Supported Under Stand-Up India Scheme
The scheme is sector-agnostic, encouraging participation across a broad range of industries:
- Manufacturing: Small-scale units, machinery production, apparel units
- Services: IT services, salons, repair workshops, mobile service centers
- Trading: Retail outlets, supply chains, wholesale trading
- Agri-allied: Poultry farms, dairy units, organic farming, agro-processing
This sectoral diversity allows entrepreneurs to pursue ventures aligned with their skills, regional demands, and innovation capacity.
Success Stories and Impact of the Scheme
Over the years, the Stand-Up India Scheme has transformed thousands of lives:
- Rural women entrepreneurs have successfully set up tailoring units, bakeries, and dairy farms.
- SC/ST tech entrepreneurs have launched IT-enabled services and digital platforms.
- First-generation business owners from tier-2 and tier-3 cities have achieved financial independence and inspired community-level change.
These success stories reinforce the transformative power of the scheme in nurturing dreams into scalable enterprises.
Challenges Faced and Way Forward
Despite its success, the Stand-Up India Scheme faces some challenges:
- Lack of awareness in remote and rural areas
- Initial hesitancy among banks in lending to first-time borrowers
- Skill and digital literacy gaps
To address these, a multi-stakeholder approach involving government departments, NGOs, banks, and training institutes is essential. Improved awareness campaigns, simplified procedures, and localized training can further enhance the scheme’s outreach and effectiveness.
Why the Stand-Up India Scheme is a Game-Changer
Systemic inequalities often hinder entrepreneurship in the country, but the Stand-Up India Scheme emerges as a game-changer. By democratizing access to credit and creating an enabling environment, it brings inclusive growth to the forefront of India’s economic strategy.
It is more than just a loan program—it’s a nation-building movement that empowers the marginalized to dream big and contribute to India’s vibrant startup ecosystem.
Conclusion
The Stand-Up India Scheme is a bold and transformative initiative that plays a vital role in fostering inclusive entrepreneurship across India. By offering structured financial support and extensive handholding, it breaks down the traditional barriers that SC/ST and women entrepreneurs have long faced. The scheme not only promotes economic self-reliance but also contributes significantly to employment generation and regional development.
As more aspiring entrepreneurs leverage this opportunity, the ripple effects will be felt across communities, industries, and the nation’s economy. With continued awareness, policy support, and stakeholder collaboration, the Stand-Up India Scheme has the potential to create a new generation of empowered, confident, and successful business leaders from India’s most underrepresented sections.
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