India's Union Cabinet has extended the Stand-Up India scheme for five more years, until 31 March 2031, backing it with a Rs 4,111 crore credit guarantee corpus to support a new wave of women and Scheduled Caste and Scheduled Tribe entrepreneurs.

The decision, taken on 11 November, aims to provide financial assistance to at least 2.5 lakh additional entrepreneurs over the next five years. The scheme offers bank loans of above Rs 10 lakh and up to Rs 1 crore to women, SC and ST entrepreneurs setting up greenfield enterprises. Lenders get guarantee cover of 85 per cent of the loan amount, with a standard guarantee fee of 0.50 per cent.

A scheme running since 2016

Stand-Up India was launched in April 2016 to help first-time entrepreneurs from groups that have historically found it hardest to access business credit. Announcing the extension, Information and Broadcasting Minister Ashwini Vaishnaw said: “The programme was designed to help SC, ST and women entrepreneurs start their own businesses. It has been very successful, which is why its continuation for another five years was approved today.”

Mudra guarantees extended too

At the same meeting, the Cabinet also extended the Credit Guarantee Fund for Micro Units, which backs lending under the Pradhan Mantri Mudra Yojana, until 31 March 2031 with a corpus of Rs 5,000 crore. The government expects it to facilitate Rs 12.6 lakh crore of Mudra loans over five years. Together, the two decisions put Rs 9,111 crore of guarantee backing behind small-business lending. Read the announcement from the Press Information Bureau.