New Delhi, November 11: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the continuation of the Stand-Up India Scheme for five more years, up to 31 March 2031. The government said the extension aims to provide bank finance to an additional 2.5 lakh women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs over the period.
A Credit Guarantee Corpus of ₹4,111 crore has been approved to back the loans.
Who can borrow and how much
The scheme is open to women, SC and ST entrepreneurs setting up new, or greenfield, enterprises. Loans above ₹10 lakh and up to ₹1 crore can be taken either as a composite loan, combining working capital and a term loan, or as a term loan alone. Finance can cover up to 85% of the project cost.
Eligible activities include manufacturing, services, trading and agri-allied ventures.
Guarantee cover and fee
Loans under the scheme carry credit guarantee cover of 85% of the loan amount, which reduces the risk carried by lending banks. A standard guarantee fee of 0.50% applies.
Track record
Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, according to the government.
The government said the continuation would improve access to credit for these groups, support the creation of new enterprises and contribute to inclusive economic growth. For aspiring founders from these groups, the decision keeps a dedicated route to bank credit open until March 2031.
Related: Government expands support for women entrepreneurs under Startup India initiative