Extension of Stand-Up India Scheme up to 2031

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Key takeaways

The Cabinet extended the Stand-Up India Scheme for five years up to March 31, 2031, aiming to support 2.5 lakh new entrepreneurs.
Launched on April 5, 2016, the scheme has already provided bank loans to more than 75 lakh women, SC, and ST entrepreneurs.
The scheme offers composite loans between ₹10 lakh and ₹1 crore, funding up to 85% of the greenfield project cost across manufacturing, services, trading, and agri-allied sectors.
A newly approved credit guarantee corpus of ₹4,111 crore provides an 85% loan guarantee with a nominal 0.50% guarantee fee.

The Union Cabinet extended the Stand-Up India Scheme for another five years until March 31, 2031.
This extension aims to help at least 2.5 lakh new beneficiaries set up their businesses.

The Department of Financial Services under the Ministry of Finance manages this flagship program.
It helps underserved entrepreneurs get bank loans from Scheduled Commercial Banks to start new greenfield businesses.

The government launched this program on April 5, 2016, to help women and marginalized groups get formal bank loans.
Since its launch, the scheme has helped over 75 lakh women, SC, and ST entrepreneurs get business loans across India.

The main objective is to encourage local business owners and create new jobs.
It empowers women, SC, and ST individuals by giving them easy access to formal bank loans for new enterprises.

The scheme helps SC, ST, and women entrepreneurs who are above 18 years old set up new greenfield enterprises.
For non-individual businesses, SC, ST, or women owners must hold at least 51% of the shares and voting control.
Banks provide combined term loans and working capital ranging from ₹10 lakh to ₹1 crore.
This loan covers up to 85% of the total project cost.
The scheme supports new businesses in manufacturing, services, trading, and agriculture-related activities.
The government provides an 85% credit guarantee on loans, supported by a ₹4,111 crore fund with a 0.50% fee.
Every branch of Scheduled Commercial Banks must give loans to at least one SC or ST borrower and one woman borrower.
An online portal also helps borrowers with business training, project reports, and skill guidance.

The scheme reduces the need for collateral security, helping disadvantaged people start businesses and create jobs.
It strengthens businesses in rural and small towns, promoting equal economic growth and encouraging women leaders.