by Stand Up India is a flagship initiative launched by the Government of India in April 2016 to promote entrepreneurship among women and marginalized communities, particularly Scheduled Castes (SC) and Scheduled Tribes (ST). The scheme provides financial support in the form of bank loans ranging from ₹10 lakh to ₹1 crore to set up greenfield enterprises in manufacturing, services, or trading sectors.
Loans under Stand Up India are collateral-free and offered through Scheduled Commercial Banks, ensuring easy access to credit. The scheme also includes guidance on business planning, project management, and financial literacy, empowering entrepreneurs to manage and grow their ventures successfully.
By targeting underrepresented groups, Stand Up India fosters inclusive economic growth, job creation, and social empowerment, strengthening the startup ecosystem and encouraging self-employment in both urban and rural areas of India.
Objectives of Stand up India:
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Promote Entrepreneurship among Women
A primary objective of Stand Up India is to encourage women to become entrepreneurs by providing easy access to finance, mentorship, and training. Women, particularly in rural and semi-urban areas, often face challenges such as limited capital, social constraints, and lack of guidance. By offering collateral-free loans and business advisory support, the scheme empowers women to establish greenfield enterprises in manufacturing, services, and trading sectors. This initiative promotes economic independence, skill development, and decision-making power for women, while contributing to overall inclusive growth and strengthening India’s startup ecosystem.
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Facilitate Entrepreneurship for SC/ST Communities
Stand Up India aims to support Scheduled Castes (SC) and Scheduled Tribes (ST) in establishing businesses. These communities often face systemic barriers to accessing credit and entrepreneurship opportunities. By providing bank loans ranging from ₹10 lakh to ₹1 crore, along with mentoring and financial literacy programs, the scheme helps SC/ST entrepreneurs create self-employment opportunities. This promotes inclusive economic development, social empowerment, and poverty alleviation, allowing marginalized communities to participate actively in the formal economy. The initiative strengthens financial inclusion and contributes to a diversified, equitable, and sustainable startup ecosystem in India.
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Facilitate Greenfield Enterprises
The scheme specifically encourages the establishment of greenfield enterprises, which are new ventures set up from scratch rather than expanding existing businesses. This objective ensures that beneficiaries start businesses that generate employment, innovation, and economic activity, fostering entrepreneurship in underserved sectors. By focusing on greenfield projects, Stand Up India supports new market entrants, stimulates economic dynamism, and reduces reliance on informal or low-productivity work. This approach strengthens the ecosystem for first-time entrepreneurs, enabling them to leverage financial, advisory, and mentorship support to grow sustainable businesses, contributing to national economic growth and self-reliance.
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Promote Financial Inclusion and Access to Credit
Stand Up India aims to bridge the credit gap for women and SC/ST entrepreneurs by providing easy access to formal financial resources. Many first-time entrepreneurs lack collateral, credit history, or knowledge of banking procedures, which restricts their access to loans. By offering collateral-free loans through Scheduled Commercial Banks, the scheme ensures that underserved segments can avail timely financing for working capital, equipment, and operational needs. Financial inclusion empowers beneficiaries to start and grow businesses, promotes self-employment, reduces dependency on informal lenders, and strengthens the overall economic participation of marginalized groups in India’s formal economy.
Eligibility of Stand Up India:
The Stand Up India scheme targets women and marginalized communities, specifically Scheduled Castes (SC) and Scheduled Tribes (ST), who aspire to become first-time entrepreneurs. Eligible applicants must be Indian citizens and can establish greenfield enterprises in the manufacturing, services, or trading sectors. The scheme primarily focuses on promoting inclusive entrepreneurship by assisting those who traditionally face barriers to accessing finance and business support. Applicants should be first-time borrowers from banks for starting a business, ensuring the initiative benefits new entrepreneurs rather than existing enterprises seeking expansion.
Loans under Stand Up India range from ₹10 lakh to ₹1 crore, and applicants must demonstrate the viability of their business plan, including financial projections, operational strategy, and growth potential. The enterprise should be located in India, and the borrower must comply with all legal, regulatory, and licensing requirements for the chosen business sector. While collateral-free loans are available, banks may require security in line with internal credit policies. By meeting these criteria, eligible entrepreneurs gain access to financial assistance, mentoring, and business advisory support, enabling them to establish sustainable ventures and contribute to economic empowerment, employment generation, and inclusive growth.
Benefits of Stand Up India:
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Promotes Entrepreneurship among SC/ST and Women
The scheme’s core benefit is fostering inclusive entrepreneurship by mandating bank loans for at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per branch of Scheduled Commercial Banks. This directly targets and empowers historically underrepresented groups in the business ecosystem. It provides them with the necessary capital to become job creators, breaking traditional socio-economic barriers and promoting equitable wealth distribution. This leads to greater social upliftment and the emergence of a more diverse and resilient entrepreneurial landscape in India.
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Provides Collateral-Free Access to Bank Credit
A significant barrier for new entrepreneurs is the lack of collateral. Stand Up India addresses this by offering loans from ₹10 lakh to ₹1 crore for setting up a greenfield enterprise without requiring the borrower to provide third-party collateral or guarantors. This is made possible through the credit guarantee cover provided by the Credit Guarantee Fund for Stand Up India (CGFSI). This benefit de-risks the entrepreneurial journey for borrowers and makes formal institutional credit accessible to those who have business ideas but lack tangible assets to pledge.
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Offers Comprehensive Support and Hand-holding
Beyond financing, the scheme provides critical non-financial support to ensure the sustainability of the enterprise. This includes pre-loan guidance in developing a business plan, facilitating bank loans, and skill development. Furthermore, it offers post-loan hand-holding support through a network of agencies for assistance with marketing, accounting, and navigating regulatory compliances. This end-to-end support system is a crucial benefit that helps first-time entrepreneurs navigate the initial challenges of starting a business, thereby increasing the success rate of the ventures and reducing the likelihood of loan defaults.
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Encourages Greenfield Ventures in the Trading/Manufacturing/Services Sector
The scheme specifically targets the establishment of new (greenfield) projects in the manufacturing, trading, or services sector. This focus helps diversify the rural and urban economy beyond traditional agriculture. By funding new enterprises, it stimulates local economic activity, creates supply chains, and meets unmet local demand. This benefit channels entrepreneurial energy into productive, income-generating ventures that contribute directly to the local and national GDP, fostering balanced regional development and creating a culture of innovation and enterprise at the grassroots level.
