The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Stand-Up India Scheme for five years, until March 31, 2031. The extended scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs from women, Scheduled Castes (SCs) and Scheduled Tribes (STs) communities, strengthening entrepreneurship and promoting inclusive economic growth.
The Cabinet has also approved a Credit Guarantee Corpus of ₹4,111 crore to support the scheme’s lending framework and improve access to institutional finance for eligible borrowers.
Launched in April 2016, the Stand-Up India Scheme has so far facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs. Its continuation is intended to build on this progress by enabling more individuals from these communities to establish and expand enterprises.
Under the scheme, eligible women, SC and ST entrepreneurs can obtain loans to set up new, or greenfield, enterprises. The financial assistance is available for businesses in the manufacturing, services and trading sectors, as well as activities allied to agriculture.
The loan may be provided either as a composite facility combining working capital and a term loan or as a term loan. The eligible loan amount ranges from above ₹10 lakh to ₹1 crore and can cover up to 85 per cent of the project cost.
To strengthen lender confidence and facilitate credit flow, the scheme provides credit guarantee coverage of 85 per cent of the loan amount. A standard guarantee fee of 0.50 per cent is applicable.
The continuation of the scheme is expected to improve access to formal credit for entrepreneurs who may face barriers in securing finance. By supporting the creation of new enterprises, it seeks to encourage self-employment, expand business opportunities and strengthen the participation of women and members of SC and ST communities in India’s entrepreneurial ecosystem.
With a target of reaching at least 2.5 lakh additional beneficiaries over the next five years, the extended Stand-Up India Scheme aims to deepen financial inclusion and contribute to broad-based economic development.
(PIB)
