Cabinet extends Stand-Up India loan scheme for women, SC, ST to March 2031
The Union Cabinet has extended the Stand-Up India Scheme to 31 March 2031, aiming to fund 2.5 lakh more women, SC and ST entrepreneurs with loans of up to Rs 1 crore.
Key points
- The Union Cabinet approved the continuation of the Stand-Up India Scheme for five years, up to 31 March 2031.
- Loans above Rs 10 lakh and up to Rs 1 crore cover up to 85% of project cost, with an 85% credit guarantee at a 0.50% fee.
- Women, SC and ST entrepreneurs setting up a new enterprise can keep applying through banks; the target is 2.5 lakh more borrowers.
Photo: Budhesh / Wikimedia Commons, CC BY-SA 3.0 (cropped). Representational image.
The Union Cabinet on 11 November 2026 approved the continuation of the Stand-Up India Scheme for five more years, up to 31 March 2031, according to a Ministry of Finance release. The scheme helps women, Scheduled Caste and Scheduled Tribe entrepreneurs get bank loans of above Rs 10 lakh and up to Rs 1 crore to start a new business. The Cabinet also approved a credit guarantee corpus of Rs 4,111 crore for it.
What Happened
The government said the scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs over the five years. Since its launch in April 2016, it has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, according to the release.
The main features, as the release sets them out:
- Who can borrow: women, SC and ST entrepreneurs setting up a new, or "greenfield", enterprise.
- Loan size: above Rs 10 lakh and up to Rs 1 crore, covering up to 85% of the project cost.
- Loan type: a composite loan (working capital and a term loan together) or a term loan alone.
- Sectors: manufacturing, services, trading and agriculture-allied activities.
- Guarantee: 85% of the loan amount is covered by a credit guarantee, at a standard guarantee fee of 0.50%.
A credit guarantee means that if a borrower cannot repay, the guarantee fund covers a large part of the lender's loss. This makes banks more willing to lend to first-time entrepreneurs.
What It Means
For a woman, SC or ST entrepreneur planning a new business, the scheme remains open for loans sanctioned up to 31 March 2031. The loan can fund up to 85% of the project, so the borrower must arrange the rest. The scheme is for new enterprises, not for expanding an existing one.
Applications go through banks. A borrower who faces a problem with a bank over a loan application can complain to the bank first and then through the RBI's complaint portal at https://cms.rbi.org.in.
The release does not say whether any other terms of the scheme have changed.
Source: PIB press release
Sources & Citations
- PIB press release — Ministry of Finance