On April 5, 2016, Indian Prime Minister Narendra Modi launched the “Stand up India Scheme” to promote entrepreneurship among Scheduled Caste/Schedule Tribe and Women for loans in the range of Rs. 10 Lakhs to Rs. 100 Lakhs. The Scheme was aimed to benefit large number of such entrepreneurs, as it is intended to facilitate at least two such projects per bank branch (Scheduled Commercial Bank) on an average one for each category of entrepreneur. Explaining his vision for converting job seekers into job creators, the Indian Prime Minister while launching the Stand-Up India initiative remarked that it will transform the lives of the Dalits and the Adivasis. The Prime Minister said that India’s development journey will be stronger when it is scripted by the poor.
The Stand-Up India Scheme provides financial assistance to SC/ST individuals and women entrepreneurs above 18 years of age. However, the borrower must not be a defaulter with any bank or financial institution. Under this scheme, a composite loan ranging from ₹10 lakh to ₹1 crore is provided through Scheduled Commercial Banks (SCBs). The main purpose of the loan is to help set up a new enterprise in the manufacturing, services, agri-allied activities, or trading sectors by SC/ST individuals or women entrepreneurs.
The size of the loan covers up to 85% of the project cost, including the term loan and working capital. If the borrower’s contribution along with scheme support exceeds 15% of the project cost, this rule does not apply. The interest rate is the lowest applicable bank rate for the category, not exceeding the base rate plus a 3% tenor premium. For security, primary security is required, and collateral or coverage under the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) may be provided as per the bank’s decision.
The repayment period of the loan is up to 7 years, with a maximum moratorium period of 18 months. Working capital support is also available, with an overdraft facility of up to ₹10 lakh through a Rupay debit card. For amounts above ₹10 lakh, a cash credit limit is provided. Additionally, margin money of up to 15% is supported through central or state government schemes, but a minimum of 10% of the project cost must come from the borrower’s own contribution.
The Stand-Up India Scheme has shown remarkable growth over the years, with the total amount sanctioned increasing from Rs. 14,431.14 crore as of 31st October 2018 to an impressive Rs. 61,020.41 crore by 17th March 2025, since its launch. This reflects a substantial increase, highlighting the scheme’s expanding impact in empowering entrepreneurs across the country.
There has been a significant rise in the number of accounts opened by beneficiaries from Scheduled Castes (SC), Scheduled Tribes (ST), and Women Entrepreneurs. For the SC category, the number of accounts increased from 9,199 in 2018 to 46,248 in 2024. Similarly, for the ST category, the number of accounts rose from 2,841 in 2018 to 15,228 in 2024. The most notable growth is seen among women entrepreneurs, where the number of accounts increased from 55,664 in 2018 to 1,90,844 in 2024.
The sanctioned amount under the scheme has also witnessed substantial growth across all categories. For Scheduled Castes, the sanctioned amount increased from ₹1,826.21 crore in 2018 to ₹9,747.11 crore in 2024. For Scheduled Tribes, it rose from ₹574.65 crore in 2018 to ₹3,244.07 crore in 2024. Women entrepreneurs received the highest sanctioned amount, which increased from ₹5,453.57 crore in 2018 to ₹43,984.10 crore in 2024.
Overall, the data clearly indicates that the Stand-Up India Scheme has expanded its reach and impact over the years. There has been a consistent rise in both the number of beneficiaries and the financial assistance provided, with women entrepreneurs emerging as the largest beneficiaries in terms of both accounts opened and the amount sanctioned.
