Want a business loan of up to Rs 1 crore? Cabinet extends Stand-Up India scheme

The Indian Cabinet has approved the continuation of the Stand-Up India Scheme for another five years, until March 31, 2031, to promote entrepreneurship among women and members of Scheduled Castes (SCs) and Scheduled Tribes (STs).

IBNS • 11 Nov 2026, 06:00 pm

The scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs over the next five years.

Since its launch in April 2016, the Stand-Up India Scheme has facilitated loans to more than 2.75 lakh women and SC/ST entrepreneurs.

Key Features of the Stand-Up India Scheme

1. Eligible Borrowers: Women entrepreneurs and entrepreneurs belonging to Scheduled Castes (SCs) and Scheduled Tribes (STs) seeking to establish new or greenfield enterprises.

2. Loan Amount: Eligible borrowers can avail of composite loans (covering working capital and term loans) or term loans ranging from above Rs 10 lakh to Rs 1 crore, covering up to 85 per cent of the project cost.

3. Eligible Sectors: Manufacturing, services, trading and agriculture-allied activities.

4. Credit Guarantee Coverage: Credit guarantee coverage of 85 per cent of the loan amount.

5. Guarantee Fee: A standard guarantee fee of 0.50 per cent.