New Delhi, Nov 12: In a major push towards inclusive entrepreneurship, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Stand-Up India Scheme for another five years, until March 31, 2031. The extended scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs from women, Scheduled Castes (SCs) and Scheduled Tribes (STs), strengthening India’s efforts to make entrepreneurship more accessible to underserved communities.
Launched 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 is expected to widen access to institutional credit and encourage the creation of new businesses, particularly among first-generation entrepreneurs.
Under the scheme, eligible women and SC/ST entrepreneurs can obtain bank loans ranging from above Rs 10 lakh to Rs 1 crore for setting up greenfield enterprises. The loans can be structured as composite finance, combining term loans and working capital, or as term loans, subject to the scheme’s eligibility and lending conditions. Financial support can cover up to 85 per cent of the project cost.
The scheme covers manufacturing, services, trading and agriculture-allied activities, offering opportunities for aspiring business owners across a wide range of sectors. It also provides credit guarantee coverage of 85 per cent of the loan amount, with a standard guarantee fee of 0.50 per cent, helping reduce the risk associated with lending to eligible borrowers.
The extension is significant because access to affordable institutional finance remains one of the major challenges for small businesses, particularly those started by individuals with limited assets, business networks or credit histories. By facilitating bank finance, the scheme seeks to help entrepreneurs move beyond the idea stage and establish viable enterprises.
Beyond financial assistance, the initiative has the potential to generate local employment, strengthen small-business ecosystems and encourage greater participation of women and historically disadvantaged communities in India’s economic growth.
With a fresh target of 2.5 lakh beneficiaries over the next five years, the continued Stand-Up India Scheme reinforces the government’s focus on building an entrepreneurial ecosystem where access to opportunity is not restricted by gender or social background.
