Stand-Up India Scheme Extended Until 2031

On 11 November 2026, the Union Cabinet approved a five-year extension of the Stand-Up India Scheme, until 31 March 2031. The scheme aims to provide financial assistance to at least 2.5 lakh additional entrepreneurs and has a ₹4,111-crore credit guarantee corpus.

Loan terms and guarantee

The scheme supports women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs setting up new businesses in manufacturing, services, trading and agriculture-allied activities. Eligible borrowers can access loans above ₹10 lakh and up to ₹1 crore. Loans may be term loans or a combination of term loans and working capital, covering up to 85% of project cost.

The guarantee fee is standardised at 0.5%, with no additional risk premium. The guarantee covers 85% of the loan amount, reducing lending institutions’ risk.

Targets and reach

The scheme targets an average of two loans per bank branch: one to a woman entrepreneur and another to an SC/ST entrepreneur. It also offers support during loan applications and subsequent business development. Since its launch, it has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs. The government says the extension aims to widen credit access, support new enterprises and generate employment.

Important Facts for Exams

• Greenfield lending: Stand-Up India loans support setting up greenfield enterprises, a focus on new ventures rather than financing established businesses.
• Non-individual borrower eligibility: For a non-individual enterprise, eligibility requires at least 51% of its shareholding and controlling stake to be held by a woman or SC/ST entrepreneur.
• Repayment period: Stand-Up India loans may be repaid over a maximum of seven years, including a moratorium period of up to 18 months.
• Guarantee fund administrator: The Credit Guarantee Fund for Stand-Up India is administered by the National Credit Guarantee Trustee Company, a wholly owned Government of India company.