India told every bank branch to fund at least one SC/ST entrepreneur and one woman entrepreneur. The scheme that did it has now quietly run its course, with a bigger one waiting in the wings.
Timeline
- 5 April 2016: The Prime Minister launched the Stand-Up India Scheme (SUPI). It aimed to promote entrepreneurship among Scheduled Castes, Scheduled Tribes, and women.
- 20 July 2021: The government extended the scheme’s validity to 2025. In the same Budget cycle, it cut margin money requirements from 25% to 15%, and added agriculture-allied activities as an eligible sector.
- 1 February 2025: In the Union Budget for FY 2025-26, the Finance Minister announced a new, successor scheme. It targets 5 lakh first-time SC/ST and women entrepreneurs, with loans up to ₹2 crore.
- 31 March 2025: Stand-Up India’s approved implementation cycle concluded, in line with the 15th Finance Commission period. Its final tally: 2.75 lakh loans, worth ₹62,790 crore.
Must Know
- The Stand-Up India Scheme (SUPI) launched on 5 April 2016. It promotes entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and women.
- The scheme requires every Scheduled Commercial Bank branch to support at least one SC/ST borrower, and at least one woman borrower, for setting up a greenfield enterprise.
- A greenfield enterprise means a new venture, in manufacturing, services, trading, or activities allied to agriculture.
- Loans range from ₹10 lakh to ₹1 crore. Repayment can run up to seven years, including an 18-month moratorium period.
- To be eligible, an applicant must be over 18, and it must be their first venture. For non-individual enterprises, at least 51% shareholding and control must rest with an SC/ST person or a woman.
- Applicants apply through the dedicated standupmitra.in portal, or via the government’s broader jansamarth.in loan portal.
- The scheme’s approved cycle ran through 31 March 2025, tied to the 15th Finance Commission period. By then, it had sanctioned 2.75 lakh loans, worth ₹62,790 crore, per the same figures already cited in IndEco0132 — Financial Inclusion in India.
Good to Know
- The government does not directly fund Stand-Up India loans. Banks lend under their own commercial and Board-approved policies, following RBI guidelines.
- Loans are backed by the Credit Guarantee Fund for Stand-Up India (CGFSI). The government contributed ₹500 crore in FY 2016-17, another ₹500 crore in FY 2017-18, and ₹100 crore in FY 2020-21, to build this corpus.
- The scheme was extended once already, on 20 July 2021, pushing its validity out to 2025. That same policy update reduced margin money from 25% to 15%, and brought agriculture-allied activities into scope.
- Borrowers must still contribute at least 10% of the project cost themselves, even after margin-money support.
- Being tied to the 15th Finance Commission period explains why the scheme’s approved cycle ended specifically on 31 March 2025, rather than at an arbitrary later date.
Test Yourself
Great to Know
- Mandating “at least one SC/ST and one woman borrower per bank branch” is a distinctive design choice. Rather than only offering interest subsidies or eligibility rules, it places a direct distributional obligation on the banking network itself.
- The scheme’s own funding structure is notable: government money backs a credit guarantee corpus, but doesn’t directly finance the loans. This keeps loans on commercial banks’ own books, while still de-risking that lending.
- The government has said the coming successor scheme will “incorporate lessons from the successful Stand-Up India scheme.” That is an unusually direct acknowledgment that a concluding scheme’s real operational experience is shaping its replacement’s design.
Current Affairs
- Stand-Up India’s approved implementation cycle formally concluded on 31 March 2025, in line with the 15th Finance Commission period. (Source: Department of Financial Services)
- In the Union Budget for FY 2025-26, presented 1 February 2025, the Finance Minister announced a new scheme for 5 lakh first-time SC/ST and women entrepreneurs, offering term loans up to ₹2 crore over the next 5 years. (Source: Business Standard)
- As of the Department of Financial Services’ own current page, this successor scheme’s EFC (Expenditure Finance Committee) note is still under preparation. Inter-ministerial consultation is ongoing, and it has not yet formally launched. (Source: Department of Financial Services)
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