The Union Cabinet, chaired by Prime Minister Narendra Modi, has extended the Stand-Up India scheme for five more years, until March 31, 2031. The scheme gives bank loans to women and Scheduled Caste and Scheduled Tribe entrepreneurs who want to start a new business. The extension aims to support at least 2.5 lakh more such entrepreneurs.
What Stand-Up India offers
Stand-Up India was launched in April 2016 and is run under the Ministry of Finance. Its original goal was for each scheduled commercial bank branch to fund at least one SC or ST borrower and at least one woman borrower. The main features remain the same:
- Loan size: above Rs 10 lakh and up to Rs 1 crore
- Coverage: up to 85 per cent of the project cost
- Type of loan: a term loan, or a composite loan that combines a term loan with working capital
- Eligible sectors: manufacturing, services, trading and agriculture-allied activities
- Who can apply: women, SC and ST entrepreneurs aged 18 or above, for a new (greenfield) enterprise
Credit guarantee support
Loans under the scheme are backed by a credit guarantee. The guarantee covers 85 per cent of the loan amount, and the standard guarantee fee is 0.50 per cent. The credit guarantee corpus stands at Rs 4,111 crore, according to the report by Indian Masterminds. A guarantee lowers the risk for banks, which in turn makes them more willing to lend to first-time business owners who may not have much collateral.
How the scheme has done so far
Since 2016, Stand-Up India has supported more than 2.75 lakh women and SC/ST entrepreneurs. The new target of 2.5 lakh more beneficiaries over five years is close to what the scheme achieved in its first decade, so banks will need to keep lending at a similar pace.
Other Cabinet decisions this week
The Cabinet also took other notable decisions on November 12. It approved nutrient-based subsidy rates for phosphatic and potassic fertilisers, including DAP, for the Rabi 2026-27 season, with a budget estimate of about Rs 62,370 crore for October 2026 to March 2027. Separately, the Cabinet Committee on Economic Affairs cleared Rs 3,230 crore for the Yuge Yugeen Bharat National Museum, to be developed in the North and South Block buildings in New Delhi.
How to apply
Interested entrepreneurs can apply through their bank branch or through the official Stand-Up India portal run by SIDBI. It helps to have a clear project report, identity and caste documents where relevant, and a basic estimate of costs before approaching the bank.
Reporting based on Indian Masterminds, Vajiram & Ravi, Global Agriculture and Organiser.
Featured image: Pinakpani, via Wikimedia Commons (CC BY-SA 4.0)
