First-time Entrepreneurs Scheme vs. Stand-Up India: Choosing the Right Loan for Your Startup
Starting a new business is an exciting journey, and the Indian government is continuously introducing schemes to support aspiring entrepreneurs, especially from underserved communities. Two such powerful initiatives are the newly proposed Scheme for First-time Entrepreneurs and the established Stand-Up India Scheme. Both aim to empower women, Scheduled Castes (SC), and Scheduled Tribes (ST) to become successful business owners, but they have distinct features. Let's break down these schemes to help you decide which one is the perfect fit for your startup dream.
Understanding the Scheme for First-time Entrepreneurs
The Scheme for First-time Entrepreneurs, recently proposed in Budget 2025, is designed specifically for individuals taking their very first step into entrepreneurship. Its primary goal is to provide substantial financial backing to women, SC, and ST entrepreneurs who are launching their maiden ventures.
Key Features:
- Higher Loan Amount: Offers term loans up to an impressive Rs. 2 crore.
- Target Group: Exclusively for first-time entrepreneurs belonging to women, SC, and ST categories.
- Focus: Emphasizes encouraging new businesses from these specific communities, providing a significant boost right from the start.
This scheme is a game-changer for those who need a larger capital injection to kickstart their innovative ideas. For a comprehensive look at this new opportunity, including eligibility and application steps, refer to our detailed guide: Scheme for First-time Entrepreneurs: Complete Guide to Loans up to 2 Crore for Women, SC & ST - Eligibility, Benefits & How to Apply.
Understanding the Stand-Up India Scheme
The Stand-Up India Scheme, launched in 2016, has already helped countless entrepreneurs establish their businesses. It aims to facilitate bank loans between Rs. 10 lakh and Rs. 1 crore to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
Key Features:
- Loan Amount: Provides composite loans (including term loan and working capital) between Rs. 10 lakh and Rs. 1 crore.
- Target Group: At least one SC/ST entrepreneur and at least one woman entrepreneur per bank branch.
- Project Type: Exclusively for greenfield projects (meaning a new venture, not an expansion of an existing one) in manufacturing, services, or trading sectors.
- Assistance: Helps with not just loans but also hand-holding support for project preparation, credit training, and more.
First-time Entrepreneurs Scheme vs. Stand-Up India: Key Differences
While both schemes share a noble objective of empowering entrepreneurs from specific groups, their mechanisms and targets differ significantly. Here's a clear comparison:
1. Loan Amount
- First-time Entrepreneurs Scheme: Offers a higher potential, with term loans going up to Rs. 2 crore.
- Stand-Up India Scheme: Provides loans ranging from Rs. 10 lakh to Rs. 1 crore.
2. Eligibility & Target Beneficiaries
- First-time Entrepreneurs Scheme: Specifically targets women, Scheduled Castes, and Scheduled Tribes who are first-time entrepreneurs. If you've never run a business before, this scheme is tailored for you.
- Stand-Up India Scheme: Focuses on facilitating loans to at least one SC/ST and one woman entrepreneur per bank branch for establishing a greenfield enterprise. While it includes women and SC/ST, it doesn't strictly define them as