Starting a business in India takes more than a strong idea and personal drive. You also need timely credit, practical mentorship, and clear, step-by-step support. For many women and entrepreneurs from Scheduled Castes (SC) and Scheduled Tribes (ST), access to these essentials can still be harder than it should be.
Launched on 5 April 2016, the Stand Up India Scheme supports first-time entrepreneurs. To achieve this, it enables banks to offer loans to one borrower from the SC or ST community and one woman borrower per branch.
It provides ₹10 lakh to ₹1 crore for greenfield ventures across manufacturing, services, trading, and allied agricultural activities, helping first-time entrepreneurs start fresh ventures. Let’s understand how this flagship initiative strengthens financial inclusion and promotes entrepreneurship across India.
Accessible Financing for First-time Entrepreneurs
The Stand Up India Scheme offers loans at the lowest applicable interest rate determined by the bank, not exceeding the base rate or MCLR + 3% + tenor premium. Borrowers can repay the amount within seven years, with a moratorium period of up to 18 months. This structure allows entrepreneurs sufficient time to stabilise their businesses before repayments begin.
A unique feature of the scheme is its inclusivity. These loans can be used to meet project costs such as machinery, working capital, or other essential business requirements. By addressing a key barrier to business creation, access to affordable finance, the Stand Up India Scheme helps many individuals turn early-stage ideas into viable enterprises.
Encouraging Participation and Financial Inclusion
The Stand Up India Scheme plays a vital role in ensuring financial inclusion for underrepresented communities. Many women and SC/ST entrepreneurs previously lacked collateral or a credit history, making access to bank finance nearly impossible.
Through this initiative, each eligible borrower is linked directly with Scheduled Commercial Banks (SCBs) and supporting agencies, improving transparency and confidence. The handholding process ensures that applicants receive guidance on business plans, eligibility, and required documentation.
This personalised support, combined with credit availability, has encouraged thousands of individuals to take their first entrepreneurial steps.
Eligibility For the Stand Up India Scheme
To qualify under the Stand Up India Scheme, the applicant and the enterprise must meet specific conditions linked to borrower category, business status, and ownership structure.
- Eligible Borrower Categories
Applicants must be women entrepreneurs or individuals from the SC or ST community.
- Greenfield Enterprise Requirement
The business must be a greenfield enterprise, meaning a first-time venture in manufacturing, services, trading, or allied agricultural activities.
- Loan Support Expectation at the Branch Level
Each bank branch is expected to support one SC or ST borrower and one woman borrower.
- Ownership Rules for Non-individual Entities
For partnership firms, limited liability partnerships, or companies, at least 51% ownership and the controlling stake must be held by the eligible applicant.
- Standard Bank Credit Assessment Applies
Applicants must meet the bank’s usual credit appraisal norms, including documentation and viability checks for the proposed business.
Significant Progress and Measurable Outcomes
Since its inception, the Stand Up India Scheme has recorded impressive growth in the number of beneficiaries. The increase in accounts and sanctioned amounts between April 2022 and March 2025 shows the scale of its success:
| Category | Number of Loan Accounts | Amount Sanctioned (₹ Crore) |
| SC | 30,145 | 6,437.59 |
| ST | 9,625 | 2,037.15 |
| Women (General) | 86,738 | 20,521.41 |
| Total | 1,26,508 | 28,996.15 |
*Source: PIB
These figures demonstrate how the Stand Up India Scheme has empowered thousands of entrepreneurs and significantly contributed to the country’s inclusive growth.
Women make up the largest group of beneficiaries, reflecting the scheme’s strong impact on women-led businesses. By supporting both urban and rural entrepreneurs, it has created employment opportunities and encouraged self-reliance in local communities.
Role in Strengthening the MSME Ecosystem
The Stand Up India Scheme works alongside other MSME government schemes to expand access to formal credit and improve business readiness for underserved entrepreneur groups.
- Builds a More Connected Funding Ecosystem
It fits into a wider network of MSME government schemes, helping entrepreneurs find finance routes that match sector needs and business stages.
- Improves Credit Access for Priority Borrower Groups
By focusing on SC, ST, and women borrowers, it directs support to groups that face higher credit barriers.
- Encourages First-time Entrepreneurship Through Greenfield Focus
Its emphasis on new enterprises supports the creation of new businesses, which increases local economic activity and broadens the base of job providers.
- Strengthens Enterprise Resilience Through Structured Lending
Access to formal credit helps micro and small enterprises plan cash flow better, manage working capital, and reduce reliance on informal borrowing.
- Supports Inclusive Economic Development Outcomes
When more underrepresented entrepreneurs participate in formal business activity, the impact extends to employment, local supply chains, and community income stability.
Take the Next Step Towards Inclusive Entrepreneurship
The Stand Up India Scheme stands as a key pillar in India’s journey toward inclusive economic development. By offering accessible credit, structured mentorship, and digital guidance, it empowers women and SC/ST entrepreneurs to transform ideas into sustainable enterprises.
Its measurable success highlights the potential of inclusive policies to create jobs, strengthen the MSME sector, and expand financial inclusion. Alongside other MSME government schemes, it continues to play a vital role in shaping India’s entrepreneurial future.
Financial institutions like HDFC Bank contribute to this effort by helping individuals access the resources and confidence they need to start and grow their businesses. With sustained support and awareness, the Stand Up India vision can continue to inspire and uplift generations of entrepreneurs across the country.
