The Stand-Up India Scheme was launched on 5 April 2016 with the aim of promoting entrepreneurship at the grassroots level. It focuses on empowering women, Scheduled Castes (SC), and Scheduled Tribes (ST) by helping them start their own businesses. The scheme not only supports economic growth but also creates employment opportunities across the country. Due to its success, the scheme has been extended up to the year 2025.
Objective of the Scheme
The main objective of the scheme is to encourage people from weaker sections of society to become entrepreneurs instead of job seekers. It aims to reduce inequality by providing financial support to those who often face difficulties in getting bank loans. The scheme promotes setting up greenfield enterprises, which means starting a business for the first time in manufacturing, services, trading, or agriculture-related sectors.
Another important goal is to ensure that every bank branch of Scheduled Commercial Banks supports at least:
- One SC/ST borrower
- One woman borrower
This helps in spreading the benefits of the scheme across all regions of India.
Loan Features and Financial Support
Under the Stand-Up India Scheme, banks provide loans ranging from ₹10 lakh to ₹1 crore to eligible applicants. These loans can be used for setting up new businesses.
Key financial features include:
- The borrower must contribute at least 10% of the project cost
- Up to 15% margin money can be arranged through other government schemes
- Loans are provided at reasonable interest rates
- Both term loans and working capital are included
This financial structure ensures that even first-time entrepreneurs can start their ventures without facing heavy financial pressure.
Eligibility Criteria
To ensure that the scheme benefits the right people, certain conditions must be fulfilled:
- The applicant must be a woman or belong to SC/ST category
- The applicant must be above 18 years of age
- The business should be a first-time venture (greenfield project)
- In case of companies or partnerships, at least 51% ownership must be with SC/ST or women
- The applicant should not have defaulted on any bank loan
These criteria ensure that genuine and deserving entrepreneurs get support.
Application Process
Applicants can apply for loans under this scheme through multiple channels:
- By visiting a bank branch directly
- Through the official Stand-Up India portal (standupmitra.in)
- With the help of the Lead District Manager (LDM)
This flexible system makes it easy for applicants from both urban and rural areas to apply.
Handholding and Support System
One of the biggest strengths of the scheme is its strong support system. It not only provides loans but also guides entrepreneurs at every step.
The portal developed by the Small Industries Development Bank of India plays an important role. It offers:
- Training programs
- Help in preparing business plans
- Assistance in filling loan applications
- Mentorship support
More than 8,000 Handholding Agencies are connected with the scheme. These include:
- Skilling centres
- Entrepreneurship Development Institutes
- District Industries Centres
This ensures that entrepreneurs get full support from idea to execution.
Achievements of the Scheme
The scheme has shown strong performance since its launch. As of 21 March 2023:
- Total amount sanctioned: ₹40,710 crore
- Total accounts supported: 1,80,636
Category-wise Distribution
| Category | Number of Accounts | Sanctioned Amount (₹ Crore) |
|---|---|---|
| SC | 26,889 | 5,625.50 |
| ST | 8,960 | 1,932.50 |
| Women | 1,44,787 | 33,152.43 |
| Total | 1,80,636 | 40,710.43 |
A major highlight is that over 80% of loans have been given to women entrepreneurs, showing strong progress in women empowerment.
Impact of the Scheme
The Stand-Up India Scheme has created a positive impact in many ways:
- Encouraged people to start their own businesses
- Helped in job creation, especially in rural and semi-urban areas
- Improved the standard of living of beneficiaries and their families
- Promoted financial inclusion by bringing more people into the banking system
- Supported the idea of “funding the unfunded”
It has also helped in building confidence among new entrepreneurs who earlier lacked access to finance.
Government’s View
Union Finance Minister Nirmala Sitharaman said that the scheme is a matter of pride as it has supported over 1.8 lakh entrepreneurs. She highlighted that it has created a strong ecosystem for business growth and job creation.
Minister of State for Finance Bhagwat Kisanrao Karad emphasized that the scheme is based on the principle of “funding the unfunded.” He stated that it has improved the lives of entrepreneurs, their employees, and their families.