The Union Cabinet on Tuesday approved the continuation of the Stand-Up India scheme for five more years, till March 31, 2031, with a credit guarantee corpus of Rs 4,111 crore and a target of supporting 2.5 lakh more women, Scheduled Caste and Scheduled Tribe entrepreneurs.
The scheme, launched in 2016, provides bank loans of Rs 10 lakh to Rs 1 crore to at least one woman borrower and at least one SC or ST borrower per bank branch for setting up a greenfield enterprise. The loans cover manufacturing, services, trading and agriculture-allied activities.
The extension comes with a significantly larger credit guarantee corpus, which is meant to encourage banks to lend to first-time entrepreneurs who often lack collateral or a credit history. The guarantee cover reduces the risk for banks and makes it easier for borrowers from disadvantaged backgrounds to access formal credit.
Officials said the scheme has already supported lakhs of entrepreneurs since its launch, and the new target of 2.5 lakh additional beneficiaries reflects the government’s push to widen the base of entrepreneurship among women and marginalised communities. The focus remains on greenfield enterprises, meaning new ventures rather than expansion of existing businesses.
The Cabinet also approved the extension of the Credit Guarantee Fund for Micro Units, with a corpus of Rs 5,000 crore, till 2031. Together, the two decisions strengthen the credit guarantee architecture for small borrowers, a segment that has traditionally struggled to access bank finance.
For women entrepreneurs in particular, the scheme has been one of the few dedicated instruments that combine concessional credit with a clear mandate for bank branches. Beneficiaries have used the loans to set up ventures ranging from food processing units and textile workshops to IT services and transport businesses.
The extension is part of a broader package of Cabinet decisions announced on Tuesday, which also included the Rs 62,370-crore fertiliser subsidy for the Rabi season and the Rs 3,230-crore Yuge Yugeen Bharat museum project. The government has presented the decisions as a combined push for farmers, entrepreneurs and cultural infrastructure.
Entrepreneurs interested in the scheme can approach any scheduled commercial bank branch, where the loan application is processed under the Stand-Up India framework. The government has said it will monitor disbursement closely to ensure the benefits reach the intended beneficiaries across states.
Officials said the scheme’s extension will also be supported by handholding and training for first-time entrepreneurs, with banks and state agencies expected to help applicants prepare project reports and complete formalities. The aim, they said, is not just to sanction loans but to ensure the enterprises survive and grow.
