The Union Cabinet has approved the continuation of the Stand-Up India Scheme for another five years, extending the programme until March 31, 2031. The initiative aims to promote entrepreneurship among women and members of Scheduled Castes and Scheduled Tribes by improving access to institutional finance.
The decision was announced on November 11, 2026, with a target of providing financial assistance to at least 2.5 lakh additional entrepreneurs during the extended period. The Cabinet has also approved a Credit Guarantee Corpus of ₹4,111 crore as part of the scheme's lending framework.
Editorial Insight
Key Highlights
Important points readers should notice.
Scheme extended until March 31, 2031.
Additional target of at least 2.5 lakh entrepreneurs.
₹4,111 crore Credit Guarantee Corpus approved.
Eligible beneficiaries include women, SC and ST entrepreneurs.
Loan amounts range above ₹10 lakh and up to ₹1 crore.
Loans are intended for new or greenfield enterprises.
Launched in April 2016, the Stand-Up India Scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, according to the Ministry of Finance.
Under the scheme, eligible women and SC/ST entrepreneurs can obtain bank loans above ₹10 lakh and up to ₹1 crore for establishing new or greenfield enterprises. These loans are intended for setting up new businesses rather than financing the expansion of existing enterprises.
The financial assistance can be provided as a term loan or a composite loan combining working capital and term-loan requirements. The scheme covers businesses in manufacturing, services, trading and agriculture-allied activities.
Editorial Analysis
Why This Matters
Access to institutional finance is an important requirement for establishing new businesses. The continuation of the Stand-Up India Scheme provides an extended lending framework for women and entrepreneurs belonging to SC and ST communities. The additional target of at least 2.5 lakh entrepreneurs highlights the government's intention to expand access to formal business finance over the next five years. The credit guarantee corpus is also an important part of the lending framework, supporting the guarantee mechanism for eligible loans. The programme's progress will depend on implementation by lending institutions, eligible applications and the establishment of new enterprises.
Eligible loans can cover up to 85 per cent of the project cost, subject to the scheme's conditions. Separately, the credit guarantee framework provides coverage of 85 per cent of the loan amount. The standard guarantee fee is 0.50 per cent.
The ₹4,111 crore Credit Guarantee Corpus is intended to support the guarantee mechanism associated with lending under the programme. It is not a direct cash grant distributed to entrepreneurs.
The extended scheme will continue to focus on improving access to formal credit for women and entrepreneurs belonging to SC and ST communities. Its additional beneficiary target will be a key measure of implementation through March 2031.
