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Stand-Up India
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Stand-Up India was launched by the Government of India on 5 April 2016 to support entrepreneurship among women and SC & ST communities. Stand Up India Loan Scheme is a government initiative launched by the Government of India in 2016 to promote entrepreneurship and facilitate bank loans to Scheduled Caste (SC) / Scheduled Tribe (ST) and women entrepreneurs in the country. The scheme aims to provide loans between Rs.10 lakhs and Rs.1 crore for setting up a greenfield enterprise in manufacturing, trading or services sector.[1]
Key Information
It is similar to but distinct from Startup India. Both are enablers and beneficiaries of other Government of India schemes, such as Make in India, Industrial corridor, Dedicated Freight Corridor, Sagarmala, Bharatmala, UDAN-RCS, Digital India, BharatNet and UMANG.
History
[edit]Prime Minister Narendra Modi launched the Stand-Up India scheme on 5 April 2016 as part of the government's efforts to support entrepreneurship among women and SC & ST communities.[2]
The scheme offers bank loans of between ₹10 lakh (US$12,000) and ₹1 crore (US$120,000) for scheduled castes and scheduled tribes and women setting up new enterprises outside of the farm sector.[3]
In April 2023, Bhagwat Karad, the Union Minister of State for Finance, Government of India, said that the scheme aligned with the National Mission for Financial Inclusion's objective of providing funding opportunities to marginalized groups. He said that over the previous seven years, more than 180,000 entrepreneurs had benefited from the scheme, and that of loans granted through the initiative, over 80% had been directed towards women entrepreneurs.[4]
See also
[edit]References
[edit]- ^ "About us". Retrieved 8 June 2023.
- ^ "'Stand Up India' will transform lives of Dalits, tribals: Modi", The Hindu, 5 April 2016
- ^ "Modi's Stand Up India scheme will ease pressure on job reservations", Hindustan Times, 6 April 2016
- ^ "More than Rs. 40,700 crore sanctioned to over 1,80,630 accounts under Stand-Up India Scheme in 7 years" (Press release).
External links
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Stand-Up India
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Overview and Objectives
Scheme Objectives
The Stand-Up India scheme primarily seeks to facilitate bank loans ranging from ₹10 lakh to ₹1 crore from Scheduled Commercial Banks to at least one borrower from the Scheduled Castes (SC) or Scheduled Tribes (ST) category and one woman borrower per bank branch. These loans target the establishment of greenfield enterprises in manufacturing, services, or trading sectors, with composite financing that includes term loans for capital assets and working capital for operational needs.[2][6] By mandating such lending quotas at the branch level, the scheme addresses systemic barriers to credit access for SC/ST and women entrepreneurs, who often face collateral shortages, limited financial literacy, or institutional biases in traditional banking. It promotes self-employment and entrepreneurial ventures as a pathway to economic inclusion, aiming to leverage untapped potential in marginalized communities for broader national growth.[7][8] Additional objectives encompass institutional support, including pre-loan training, project report preparation assistance, and post-disbursement handholding to enhance project viability and reduce default risks. This holistic approach underscores the scheme's focus on sustainable business incubation rather than mere loan disbursement, with refinance mechanisms provided by entities like the National Scheduled Castes Finance and Development Corporation to incentivize bank participation.[1][9]Core Components and Loan Structure
The Stand-Up India scheme centers on providing composite bank loans to support the establishment of greenfield enterprises, defined as new ventures without prior exposure in the same sector or location. These loans encompass both term loans for capital expenditure and working capital facilities to cover operational needs, enabling borrowers to initiate projects in manufacturing, services, trading, or agriculture-allied activities. The scheme mandates that each participating bank branch extend at least one loan to a Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one to a woman borrower, ensuring targeted outreach to underrepresented groups.[2][10] Loan amounts range from a minimum of ₹10 lakh to a maximum of ₹1 crore, covering up to 75% of the total project cost, with the borrower required to contribute the remaining margin, typically up to 15-25% depending on bank assessment. Loans are structured as composite facilities without the need for collateral in many cases, secured instead by hypothecation of project assets and supplemented by the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL), which offers guarantee coverage for the outstanding amount plus interest to mitigate lender risk. Repayment terms generally span seven years, including a moratorium period of up to 18 months on principal, with interest rates linked to the bank's repo-linked lending rate (RLLR) or equivalent benchmarks.[11][10][12] Implementation involves scheduled commercial banks, with Small Industries Development Bank of India (SIDBI) providing refinancing support and the National Credit Guarantee Trustee Company (NCGTC) managing the CGFSIL fund to enhance credit flow without diluting prudent lending norms. Borrowers must demonstrate project viability through appraisals, often aided by handholding centers for training and mentoring, though the core financial structure remains bank-led with government-backed guarantees to address historical barriers in access to formal credit for SC/ST and women entrepreneurs.[13][14]Historical Development
Launch and Initial Framework
The Stand-Up India scheme was first announced by Prime Minister Narendra Modi on August 15, 2015, during his Independence Day address from the Red Fort, as part of a broader initiative to foster entrepreneurship under the "Start-up India, Stand-up India" campaign targeting scheduled castes (SC), scheduled tribes (ST), and women.[15] The Union Cabinet, chaired by the Prime Minister, formally approved the scheme on January 16, 2016, with the objective of promoting economic inclusion by facilitating access to credit for underrepresented groups.[16] The scheme was officially launched by Prime Minister Modi on April 5, 2016, in Hyderabad, coinciding with the commemoration of B.R. Ambedkar's 125th birth anniversary, emphasizing self-reliance (Atmanirbhar Bharat) through entrepreneurial ventures.[17] At launch, it mandated public sector banks to provide loans to at least one SC/ST borrower and one woman borrower per bank branch, aiming to benefit 2.5 lakh entrepreneurs over five years.[16] Under the initial framework, loans ranged from ₹10 lakh to ₹1 crore as composite financing, covering term loans for assets like plant and machinery and working capital, with up to 85% of the project cost funded by banks and a minimum 10% borrower contribution (supplementable via subsidies or NGOs).[11] Eligibility focused on greenfield projects—new, untried enterprises—in manufacturing, services, agri-allied activities, or trading sectors, excluding non-greenfield expansions or existing businesses.[18] Implementation involved a centralized portal (Standupmitra.in) for applications, handholding by entities like Dalit Indian Chamber of Commerce and Industry (DICCI), and oversight by the Department of Financial Services, with credit guarantees provided by the Stand-Up India Trustee Company under SIDBI.[19]Extensions and Policy Evolutions
The Stand-Up India Scheme, initially set for a three-year period following its launch on April 5, 2016, was extended until March 2025 as announced by Finance Minister Nirmala Sitharaman during the Union Budget 2019-20 presentation on July 5, 2019.[20] This extension aimed to sustain momentum in facilitating loans for greenfield enterprises among Scheduled Caste, Scheduled Tribe, and women entrepreneurs, amid observed growth in loan sanctions.[21] In the Union Budget 2021-22, the scheme underwent modifications to enhance accessibility, including a reduction in the borrower's required margin money contribution from up to 25% to up to 15% of the project cost, thereby lowering the financial barrier for eligible applicants.[22] These adjustments were implemented to address implementation challenges and boost participation, with the government emphasizing simplified credit delivery through participating banks.[23] The Union Budget 2024-25 announced plans to "step up" the Stand-Up India Scheme, signaling intensified efforts to expand its reach and impact, though specific operational changes were not detailed at the time.[24] Subsequently, in July 2025, reports indicated government intentions to revise and relaunch the scheme by September 2025, potentially doubling the composite loan limit from Rs 1 crore to Rs 2 crore to better align with inflation and entrepreneurial needs in sectors like manufacturing and services.[25] The Union Budget 2025-26 introduced a new credit guarantee scheme for micro and small enterprises, explicitly incorporating lessons from Stand-Up India's implementation to provide term loans up to Rs 2 crore over five years, representing an evolutionary offshoot rather than a direct amendment to the original framework.[26] These policy shifts reflect ongoing adaptations to economic conditions, with empirical data on sanctions—such as Rs 62,791 crore disbursed to over 2.75 lakh accounts by August 2025—informing refinements to promote sustained entrepreneurship without diluting core eligibility criteria.[27]Eligibility and Application Process
Target Beneficiaries
The Stand-Up India scheme primarily targets entrepreneurs from Scheduled Castes (SC), Scheduled Tribes (ST), and women, aiming to promote inclusive entrepreneurship by addressing barriers such as access to credit for these groups.[28] Loans are extended to at least one SC/ST borrower and one woman borrower per scheduled commercial bank branch, facilitating greenfield ventures in manufacturing, services, or trading sectors with project costs between ₹10 lakh and ₹1 crore.[17] [2] Eligibility requires beneficiaries to be SC/ST individuals or women aged 18 or above, with the scheme explicitly encouraging participation without income criteria for SC/ST entrepreneurs to broaden access.[9] [29] For non-individual enterprises, such as partnerships or companies, at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur to qualify.[2] [11] This structure ensures that the scheme's benefits directly empower these demographics in establishing new enterprises, excluding expansions or existing businesses.[30] The focus on SC/ST and women reflects recognition of systemic challenges, including discrimination and limited collateral, faced by these groups in formal lending, with data indicating that approximately 68% of loans disbursed have gone to women entrepreneurs as of mid-2025.[28] [31] Beneficiaries must demonstrate project viability through bank appraisals, often supported by handholding mechanisms, but the scheme does not impose caste or gender quotas beyond the per-branch mandate.[32]Application and Approval Mechanisms
Prospective borrowers initiate the application for Stand-Up India loans through the official portal at www.standupmitra.in, a bank branch, or the Lead District Manager (LDM).[18] Upon accessing the portal, applicants answer 8-10 preliminary questions regarding location, borrower category (SC/ST or woman), and proposed business nature to determine status as either a "Ready Borrower" or "Trainee Borrower."[18] For Ready Borrowers, the portal generates an application number and notifies the relevant bank, LDM, and Stand-Up Connect Centre (SUCC). Trainee Borrowers, requiring preparatory support, are linked to the LDM and SUCC—designated offices of SIDBI or NABARD—for handholding services, including financial literacy training, skill development, Detailed Project Report (DPR) preparation, margin money assistance, and mentoring through partners like the Dalit Indian Chamber of Commerce and Industry (DICCI) or women entrepreneur associations.[18] Once handholding requirements are satisfied, as verified by the LDM, the portal generates the formal loan application, which is submitted digitally or at the bank branch.[18] Banks appraise the application for project viability, borrower eligibility (including 51% ownership/control by SC/ST or woman, and 10% own contribution), and compliance with scheme norms, adhering to processing timelines of 2 weeks for loans up to ₹5 lakh, 3 weeks for ₹5-25 lakh, and 6 weeks for amounts exceeding ₹25 lakh, assuming complete documentation.[18] The LDM sensitizes banks and resolves bottlenecks, while SIDBI and NABARD facilitate follow-up through SUCC; loans are collateral-free, covered under the Credit Guarantee Scheme for Stand-Up India (CGSSI) via the National Credit Guarantee Trustee Company (NCGTC).[18] Upon approval, banks sanction the composite loan (term loan plus working capital) covering up to 75% of project cost, with the portal enabling real-time tracking of application status and quarterly reviews by District Level Coordination Committees (DLCC).[18] Grievances are addressed by banks within 15 days, with portal-based logging and feedback.[18]Implementation and Support Ecosystem
Role of Financial Institutions
Scheduled commercial banks (SCBs) serve as the principal financial institutions responsible for originating, appraising, and disbursing loans under the Stand-Up India scheme, providing composite financing that includes term loans covering up to 75% of project costs and working capital facilities.[33] These institutions process applications submitted through the Stand-Up Mitra portal or directly at branches, verifying borrower eligibility as first-time entrepreneurs from Scheduled Castes (SC), Scheduled Tribes (ST), or women categories establishing greenfield enterprises in manufacturing, services, trading, or agri-allied sectors.[2] Loan amounts range from Rs. 10 lakh to Rs. 1 crore, with no collateral requirement due to the integrated credit guarantee coverage.[12] Banks conduct due diligence on project viability, including techno-economic appraisal, to ensure loans support feasible greenfield ventures, while adhering to a seven-year repayment tenure with up to 18 months moratorium.[10] Post-disbursement, they monitor utilization and recovery, contributing to the scheme's cumulative sanctions exceeding Rs. 62,791 crore across 2.75 lakh accounts as of August 2025.[27] To meet scheme targets, each bank branch must extend credit to at least one SC/ST borrower and one woman borrower, fostering grassroots entrepreneurship across over 1.5 lakh branches nationwide.[2] [21] The Small Industries Development Bank of India (SIDBI) acts as the nodal agency, managing the online portal for application tracking and coordinating a network of handholding institutions for pre-loan training and mentoring to aid banks in borrower preparation.[34] Additionally, SIDBI facilitates refinance support for eligible loans, while the National Credit Guarantee Trustee Company (NCGTC) administers the Credit Guarantee Scheme for Stand-Up India (CGSSI), offering coverage of 80% for defaults on loans up to Rs. 50 lakh and 75% for higher amounts up to Rs. 1 crore, thereby mitigating risk for lending institutions.[12] Regional Rural Banks (RRBs) and select cooperative banks also participate as eligible lenders, extending the scheme's reach in underserved areas, with refinance from entities like the National Scheduled Castes Finance and Development Corporation (NSFDC) for SC-focused projects.[9] This institutional framework ensures streamlined credit delivery while addressing historical barriers to finance for target groups, though banks must balance scheme mandates with prudent lending practices amid varying default experiences reported in official data.[33]Training and Handholding Support
The Stand-Up India scheme incorporates handholding support to assist potential borrowers, particularly trainee entrepreneurs requiring guidance beyond financial credit. This support is facilitated through the scheme's web portal, managed by the Small Industries Development Bank of India (SIDBI), which connects applicants to a network of specialized agencies for targeted assistance.[18][11] Applicants initially respond to a questionnaire on the portal assessing their readiness, business type, location, and specific needs, categorizing them as "ready" or "trainee" borrowers; trainees are then directed to local resources for further development.[18] Handholding is structured across seven key areas of expertise to build entrepreneurial capacity: vocational skilling, financial literacy training, entrepreneurship development programs, mentoring, project report preparation, loan application assistance, and access to work sheds or margin money subsidies via District Industries Centres (DICs).[11] Vocational and technical training occurs at designated centres such as Vocational Training Providers (VTPs) or other specialized outlets, while financial literacy is delivered through Financial Literacy Centres (FLCs). Entrepreneurship development programs (EDPs) are conducted by institutions including MSME Development Institutes (MSME-DIs), DICs, and Rural Self-Employment Training Institutes (RSETIs). Mentoring draws from networks like the Dalit Indian Chamber of Commerce and Industry (DICCI) and women entrepreneur associations, with SIDBI and the National Bank for Agriculture and Rural Development (NABARD) serving as primary "Stand-Up Connect Centres" to coordinate detailed project reports (DPRs), subsidy linkages, and bottleneck resolution.[18] Implementation involves collaboration with Lead District Managers (LDMs) who monitor progress and link trainees to SIDBI (with 80 offices) or NABARD (with 419 offices) for localized support, including quarterly reviews by District Level Coordination Committees (DLCCs) to share experiences and address issues.[18] Banks and these institutions sensitize officers via training-of-trainers programs, ensuring ongoing liaison for grievance redressal and project viability enhancement, though empirical data on utilization rates remains limited in public disclosures.[18] This ecosystem aims to reduce entry barriers for SC/ST and women entrepreneurs in greenfield ventures, complementing the core loan provision of ₹10 lakh to ₹1 crore.[17]Achievements and Empirical Impact
Sanction and Disbursement Statistics
As of August 2025, banks had sanctioned ₹62,791 crore in loans to 275,291 accounts under the Stand-Up India Scheme since its launch in April 2016.[27] This represents an increase from ₹61,020.41 crore sanctioned across approximately 252,000 accounts as of March 17, 2025.[1] Sanctions have shown steady growth, though recent fiscal years indicate flattening: 39,907 loans were sanctioned in FY23 compared to 39,643 in FY24.[35] Women entrepreneurs dominate, comprising over 70% of beneficiaries; as of November 2024, they held 190,844 accounts with ₹43,984.10 crore sanctioned.[1] Scheduled Caste (SC) beneficiaries numbered 46,248 accounts with ₹9,747.11 crore, while Scheduled Tribe (ST) beneficiaries had 15,228 accounts with ₹3,244.07 crore as of the same period.[1] Disbursement figures trail sanctions due to processing and verification delays. In FY24, only 17,374 loans were disbursed out of the 39,643 sanctioned.[36] Cumulative disbursement data is less granular in official reports, but sanctioned amounts to active beneficiaries imply substantial release, with total exposure exceeding ₹62,000 crore by mid-2025 across categories.[21]| Category (as of November 2024) | Accounts | Sanctioned Amount (₹ crore) |
|---|---|---|
| Women Entrepreneurs | 190,844 | 43,984.10 |
| SC Entrepreneurs | 46,248 | 9,747.11 |
| ST Entrepreneurs | 15,228 | 3,244.07 |