Ten years after its launch, critically evaluate how far the Stand-Up India Scheme has helped turn Women, SC and ST job-seekers into job-creators.

Stand-Up India was launched in April 2016. It helps Women, SC and ST entrepreneurs get bank loans of over Rs 10 lakh and up to Rs 1 crore to start greenfield enterprises [1]. The Cabinet has now renewed it to 2031, so its record can be judged. It has partly succeeded: it has turned many women into job-creators, some SCs, and very few STs.

Achievements

• Reach: More than 2.75 lakh entrepreneurs have received loans since 2016 [1]. Every Scheduled Commercial Bank branch is expected to lend to at least one SC/ST borrower and one woman borrower [2].
• Loan size: Rs 40,710 crore went to 1,80,636 accounts by March 2023 [3]. That is about Rs 22.5 lakh per loan, enough for a unit that can hire workers.
• Credit for women: Over 1.44 lakh loans worth Rs 33,152 crore went to women [3].
• Lower risk for banks: An 85% credit guarantee for a 0.50% fee makes it easier for banks to lend without collateral [1]. Manufacturing, services, trading and agri-allied activities are all eligible [1].

Limitations

• Few ST borrowers: As on 27 January 2025, 15,962 ST borrowers had loans, against 49,031 SC and 1,94,804 women borrowers [4]. STs are only about 6% of the total. SC and ST share one slot per branch [2], so a branch can meet the rule without lending to any ST borrower.
• Slow pace: About 26,000 borrowers a year so far. The new target of 2.5 lakh in five years [1] needs almost double that pace.
• Upfront cost: The loan covers at most 85% of project cost [1]. The borrower must bring the other 15% in cash. Expanding an existing business is not allowed, so a Mudra borrower who has repaid and wants to grow cannot use the scheme.
• Weak bank incentive and no results data: With 85% of any loss covered, banks may check projects and follow up with borrowers less carefully. Official figures count loans sanctioned, not loans repaid or units still running, so the number of jobs created is unknown.
• Overlap: Budget 2025-26 announced term loans up to Rs 2 crore for 5 lakh first-time women, SC and ST entrepreneurs [5]. The same borrower could be counted under both schemes.

Way forward

• Publish defaults, guarantee claims and three-year survival rates, separately for SC, ST and women borrowers.
• Give ST borrowers their own branch slot, with targets set by district.
• Set clear, separate eligibility rules for the two schemes. Link new units to government buyers through the National SC-ST Hub.

Overall, Stand-Up India has given marginalised groups large loans, but its gains are uneven. Measuring results and setting ST-specific targets would bring it closer to Article 46, which asks the State to promote the economic interests of SCs and STs, and to the goal of inclusive growth.