New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Stand-Up India Scheme for five more years until March 31, 2031.
The scheme aims to promote entrepreneurship among women, Scheduled Castes (SCs) and Scheduled Tribes (STs), with a target of providing financial assistance to an additional 2.5 lakh entrepreneurs over the next five years.
As part of the approval, the government has also approved a Credit Guarantee Corpus of ₹4,111 crore to support the implementation of the Stand-Up India Scheme.
Since its launch in April 2016, the Stand-Up India Scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs.
The extended scheme aims to expand access to institutional credit and encourage the creation of new enterprises among underserved communities.
Stand-Up India Scheme: Key Features
The Stand-Up India Scheme provides financial assistance to eligible women, SC and ST entrepreneurs for establishing new or greenfield enterprises across various sectors.
The key features of the scheme include:
Eligible Borrowers: Women, Scheduled Caste and Scheduled Tribe entrepreneurs setting up new or greenfield enterprises are eligible to avail of loans under the scheme.
Loan Amount: Eligible borrowers can access loans ranging from above ₹10 lakh to ₹1 crore. The loan can be provided either as a composite loan covering working capital and term loan requirements or as a term loan.
Project Cost Coverage: Loans can cover up to 85% of the project cost.
Eligible Sectors: The scheme covers manufacturing, services, trading and agriculture-allied activities.
Credit Guarantee Coverage: The credit guarantee coverage under the scheme is 85% of the loan amount.
Guarantee Fee: A standard guarantee fee of 0.50% is applicable.
Stand-Up India Scheme Targets 2.5 Lakh Additional Entrepreneurs
The continuation of the Stand-Up India Scheme is expected to extend credit access to women, SC and ST entrepreneurs and facilitate the establishment of new businesses.
With a target of covering at least 2.5 lakh additional beneficiaries over five years, the scheme aims to strengthen entrepreneurship across underserved communities.
The government said the initiative will support enterprise creation, improve access to credit for eligible entrepreneurs and contribute to inclusive economic growth.
Since its introduction in April 2016, the Stand-Up India Scheme has already facilitated loans to more than 2.75 lakh women and SC/ST entrepreneurs. Its continuation until March 31, 2031, is intended to expand this support further.
