The Stand Up India Scheme is one of the initiatives by the Government of India aimed at promoting entrepreneurship among underrepresented groups in India. Launched in 2016, this scheme has already completed 9 years of successfully empowering women and marginalized communities to create their own enterprises. In this blog, we have provided all the details about the Stand Up India Scheme features, benefits, and more.
What is the Stand Up India Scheme?
The Stand Up India Scheme is an initiative by the Ministry of Finance, Government of India. The primary goal of this scheme is to support entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and Women entrepreneurs. It provides financial assistance in the form of bank loans to help them set up Greenfield enterprises in the manufacturing, services, trading sectors, and activities allied to agriculture.
Greenfield enterprises refer to new businesses that are being established from scratch, rather than expanding or acquiring existing ones.
When Was the Stand Up India Scheme Launched?
The Stand Up India Scheme was officially launched on 5th April 2016. The scheme was introduced to provide financial support to SC/ST and women entrepreneurs to set up Greenfield enterprises in the manufacturing, services, trading sectors, and activities allied to agriculture.
Who Can Apply for the Stand Up India Scheme?
The scheme specifically targets SC/ST entrepreneurs and women entrepreneurs. Some key eligibility criteria include:
- The enterprise must be a Greenfield project.
- If the applicant is male, he must belong to the SC/ST category.
- The applicant must be at least 18 years of age.
- The applicant must not be a defaulter in any bank or financial institution.
- For non-individual enterprises, at least 51% shareholding and controlling stake should be held by an SC/ST or woman entrepreneur.
What Are the Objectives of the Stand Up India Scheme?
The Stand Up India Scheme was designed with multiple objectives in mind:
- Promote Entrepreneurship: Encourage SC/ST and women to start their own businesses in various sectors.
- Financial Inclusion: Facilitate access to loans ranging from ₹10 lakh to ₹1 crore per enterprise.
- Support Greenfield Enterprises: Focus on new businesses rather than expansion of existing ones.
- Inclusive Growth: Contribute to economic development by creating jobs and empowering underrepresented communities.
- Empower Women: Ensure at least one woman entrepreneur per bank branch receives loan assistance.
What Are the Features of the Stand Up India Scheme?
The scheme has several notable features that make it attractive for eligible borrowers:
- Loan Quantum: Composite loan (including term loan + working capital) of ₹10 lakh to ₹1 crore.
- Margin Money: Borrowers must contribute 10–15% of the project cost, even if they are eligible for government subsidies.
- Repayment Period: Loan repayment period is 7 years, with a maximum moratorium of 18 months.
- Rate of Interest: Effective interest rate is EBLR + 3.25% (currently 12.15% as of 15.02.2025).
- Collateral: Loans are covered under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGSSI), providing up to 80% coverage.
- Handholding Support: Assistance is available for training, skill development, mentoring, project report preparation, loan application, and subsidy guidance.
- Rupay Debit Card: Provided for borrowers to access funds conveniently.
- Target Groups: At least one SC/ST and one woman entrepreneur per bank branch.
What Are the Benefits of the Stand Up India Scheme?
The scheme provides multiple benefits to its beneficiaries:
- Financial Assistance: Easy access to loans without the burden of high collateral.
- Business Support: Handholding services help new entrepreneurs manage operations effectively.
- Skill Development: Training and mentoring programs enhance business knowledge and capability.
- Inclusive Economic Growth: Helps generate employment opportunities and encourages entrepreneurship in marginalized communities.
- Convenience: Online application process via the Stand Up Mitra Portal and support from banks or Lead District Managers.
How Does the Stand Up India Scheme Link with Other Programs?
The Stand Up India Scheme also works together with other government programs and initiatives to create multiple benefits for beneficiaries. Some key points include:
- Bhartiya Micro Credit (BMC) Initiative: When this program started, BMC distributed 5,100 E-Rickshaws under the Pradhan Mantri Mudra Yojana (PMMY).
- Purpose: To help pedal rickshaw pullers become E-Rickshaw owners and increase their income, potentially three times higher than before.
- Financial Inclusion: Beneficiaries of E-Rickshaws are also included in other government schemes such as:
- Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Atal Pension Yojana (APY)
- And eight more Prime Minister-led schemes
- Awareness and Support: BMC works to make sure poor and homeless people know about financial inclusion and social security programs.
- Funding: The Mudra Scheme provides the financial support for all these services.
- Environmental Benefits: Switching from pedal rickshaws to E-Rickshaws helps reduce pollution and supports the Swachh Bharat Abhiyan.
- Entrepreneurial Opportunities: Charging and servicing stations for E-Rickshaws will create small businesses and jobs, supporting more people to become independent.
- Integration with Stand Up India: By combining BMC E-Rickshaw initiatives with the Stand Up India Scheme, more people get a chance to stand on their feet, start businesses, and become financially independent.
How Much Loan Has Been Sanctioned Under the Stand-Up India Scheme So Far?
As of March 17, 2025, the Stand-Up India Scheme has achieved significant milestones in supporting entrepreneurship among women and Scheduled Caste/Tribe (SC/ST) communities. The scheme has sanctioned over ₹61,020.41 crore in loans to more than 2.7 lakh applicants since its launch in 2016.
Loan Sanctioned to Date
- Total Sanctioned Amount: ₹61,020.41 crore
- Total Number of Applicants: Over 2.7 lakh
Breakdown by Beneficiary Group (as of November 2024)
- Scheduled Caste (SC) Entrepreneurs:
₹9,747.11 crore sanctioned across 46,248 accounts - Scheduled Tribe (ST) Entrepreneurs:
₹3,244.07 crore sanctioned across 15,228 accounts - Women Entrepreneurs:
₹43,984.10 crore sanctioned across 1,90,844 accounts
What Documents Are Required for the Stand Up India Scheme?
To avail of the loan, applicants need to provide several documents:
- Proof of Identity & Residence: PAN, voter ID, passport, driving license, utility bills
- Business Proof: Company incorporation certificate, partnership deed, SSI/MSME registration
- Financial Documents: Assets & liabilities statement, last 3 years balance sheets, projected balance sheets, project report (for term loans)
- SC/ST/Woman Proof: Relevant caste or gender certificates
- Additional Documents: Rent agreement, pollution clearance, collateral or lease deeds
- For Loans Above ₹25 Lakh: Detailed company profile, machinery details, suppliers, buyers, production & sales projections, staff plans, competitor analysis, financial assumptions
The Stand Up India Scheme has completed over 9 years of empowering SC/ST and women entrepreneurs across India. By providing financial support, training, mentoring, and guidance, it has created opportunities for marginalized groups to contribute to economic growth. The scheme not only supports entrepreneurship but also promotes inclusive and sustainable development.
Types of Questions Asked in Bank and SSC Exams Based on Stand Up India Scheme
1. When was the Stand Up India Scheme launched?
a) 15th August 2015
b) 5th April 2016
c) 26th January 2017
d) 2nd October 2016
2. Which ministry implements the Stand Up India Scheme?
a) Ministry of Skill Development
b) Ministry of Finance
c) Ministry of Rural Development
d) Ministry of Commerce
3. Who are the primary beneficiaries of the scheme?
a) Small traders only
b) SC/ST and Women Entrepreneurs
c) Farmers only
d) Micro-enterprises without caste/gender restrictions
4. What type of enterprise is eligible under this scheme?
a) Expansion of existing business
b) Greenfield enterprises
c) Only agriculture-related enterprises
d) Only manufacturing
5. What is the minimum loan amount under the scheme?
a) ₹5 lakh
b) ₹10 lakh
c) ₹50 lakh
d) ₹1 crore
6. What is the maximum loan amount under the scheme?
a) ₹50 lakh
b) ₹75 lakh
c) ₹1 crore
d) ₹5 crore
7. What is the repayment period for loans under the scheme?
a) 5 years
b) 7 years
c) 10 years
d) 3 years
8. What is the maximum moratorium period allowed?
a) 6 months
b) 12 months
c) 18 months
d) 24 months
9. What is the current interest rate of the scheme (as of 15.02.2025)?
a) 10.5%
b) 12.15%
c) 13.5%
d) 9.75%
10. What is the required minimum stakeholding for non-individual enterprises?
a) 33%
b) 40%
c) 51%
d) 60%
11. Which portal is used to apply online for the scheme?
a) www.mudra.in
b) www.standupmitra.in
c) www.sidbi.in
d) www.pmmy.gov.in
12. Who can apply if the applicant is male?
a) Any male applicant
b) Male applicants from SC/ST only
c) Male applicants from general category only
d) Any male entrepreneur under 40
13. What type of loan is provided under the scheme?
a) Term loan only
b) Working capital loan only
c) Composite loan (term + working capital)
d) Overdraft facility only
14. What is the minimum margin money required from the applicant?
a) 5%
b) 10%
c) 15%
d) 20%
15. What is the maximum credit guarantee coverage under CGSSI?
a) 50%
b) 70%
c) 80%
d) 100%
16. What kind of support is offered apart from loans?
a) Handholding support, mentoring, and skill development
b) Only financial support
c) Only marketing support
d) Only tax exemptions
17. Can a person with default in bank/financial institution apply?
a) Yes
b) No
c) Yes, with collateral
d) Only if female
18. Which scheme funds the BMC E-Rickshaw program linked to Stand Up India?
a) Atal Pension Yojana
b) Pradhan Mantri Jan Dhan Yojana
c) Pradhan Mantri Mudra Yojana
d) Pradhan Mantri Jeevan Jyoti Bima Yojana
19. How does switching from pedal rickshaws to E-Rickshaws support the environment?
a) Reduces pollution
b) Increases traffic
c) Reduces employment
d) No environmental impact
20. Which of the following is not a feature of the Stand Up India Scheme?
a) Loan for Greenfield enterprises
b) Financial assistance only for SC/ST and women
c) Handholding support
d) Loan amount ₹10 lakh – ₹1 crore
Answer Key
| Question | Answer | Question | Answer | Question | Answer | Question | Answer |
| Q1 | b | Q2 | b | Q3 | b | Q4 | b |
| Q5 | b | Q6 | c | Q7 | b | Q8 | c |
| Q9 | b | Q10 | c | Q11 | b | Q12 | b |
| Q13 | c | Q14 | b | Q15 | c | Q16 | a |
| Q17 | b | Q18 | c | Q19 | a | Q20 | b |
FAQs
Answer: The Stand Up India Scheme was launched on 5th April 2016.
Answer: The Ministry of Finance, Government of India implements the scheme.
Answer: The scheme targets SC/ST and women entrepreneurs.
Answer: The minimum loan amount is ₹10 lakh.
Answer: The maximum moratorium period is 18 months.
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