Government to revamp Stand-Up India Scheme to boost SC/ST and Women entrepreneurs

The Union government is preparing to introduce a revamped version of the Stand-Up India Scheme to provide improved support for Scheduled Castes (SC), Scheduled Tribes (ST), and women entrepreneurs seeking to establish new enterprises. Finance Minister Nirmala Sitharaman announced the move in the Lok Sabha on Monday while responding to a supplementary question.

Launched in 2016, the scheme aimed to promote entrepreneurship among underrepresented communities by facilitating bank loans for setting up greenfield enterprises. Since its inception, the scheme has benefited more than 2.75 lakh SC/ST and women entrepreneurs across India, with women accounting for over 80 per cent of the beneficiaries. The programme, however, expired on March 31, 2025.

Sitharaman said the government is working on a revised framework for the scheme after analysing the experience gained during its implementation. Studies conducted by NITI Aayog and other institutions have also been taken into consideration while redrafting the programme.

“Based on the studies and feedback received, the scheme is being redrafted. Soon, a proposal will be placed before the Cabinet, following which we will launch a new scheme to continue the benefits of Stand-Up India for SC/ST and women entrepreneurs across the country,” the minister said. She added that the revised scheme will be rolled out after the Union Cabinet grants its approval, though a specific timeline for the launch has not yet been announced.

Under the original scheme, eligible entrepreneurs could obtain bank loans ranging from ₹10 lakh to ₹1 crore at the lowest applicable interest rate offered by the lending bank for that category. The loans carried a repayment period of up to seven years, with a maximum moratorium period of 18 months.

The scheme was largely designed to be collateral-free through a credit guarantee mechanism, although banks could seek primary security in the form of assets created using the loan amount and, in some cases, additional security based on their risk assessment.

When asked whether the loan limits would be increased in the revised scheme, Sitharaman said the government is exploring various options. She also noted that other financing avenues are available for businesses, including the Pradhan Mantri Mudra Yojana and assistance from the Small Industries Development Bank of India .

Additionally, the Startup India programme supports innovative ventures, particularly in urban areas. The proposed revamp of the Stand-Up India scheme is expected to further expand access to institutional finance and encourage greater participation of SC/ST and women entrepreneurs in India’s growing enterprise ecosystem.