The Indian Union Cabinet on November 11 approved a five-year extension of the Stand-Up India Scheme until March 31, 2031, allocating Rs 4,111 crore toward a credit guarantee fund aimed at supporting at least 2.5 lakh additional entrepreneurs. The initiative seeks to expand access to business financing for women and individuals belonging to Scheduled Caste (SC) and Scheduled Tribe (ST) communities, encouraging entrepreneurship and employment generation across the country.
Announcing the decision during a Cabinet briefing, Union Minister Ashwini Vaishnaw said the programme had successfully helped entrepreneurs from historically underserved communities establish businesses since its introduction in April 2016. According to government figures, more than 2.75 lakh women, SC and ST entrepreneurs have received loans under the initiative so far. The latest extension is intended to build on that progress by improving access to institutional credit over the next five years.
Under the scheme, eligible applicants can obtain bank loans exceeding Rs 10 lakh and extending up to Rs 1 crore to establish new enterprises in manufacturing, services, trading and agriculture-allied activities. Financial assistance may be provided through term loans or a combination of term loans and working capital, covering up to 85% of the total project cost. The government has also approved credit guarantee protection covering 85% of the loan amount, reducing lending risks for participating financial institutions.
As part of the revised framework, the guarantee fee has been standardized at 0.5%, with no additional risk premium. The programme targets an average of two loans per bank branch, including one for a woman entrepreneur and another for an entrepreneur belonging to an SC or ST community. Beyond financing, the scheme also offers assistance throughout the loan application process and subsequent stages of business development.
The government expects the extended programme to encourage the establishment of new businesses, strengthen financial inclusion and generate additional employment opportunities. By providing credit guarantees and targeted lending support, the initiative aims to reduce financing barriers for entrepreneurs from underserved communities while promoting broader participation in India’s economic development.
