PIB TrackerCabinet extends Stand-Up India scheme to March 2031
The Cabinet has continued Stand-Up India for five years to 31 March 2031, aiming to reach another 2.5 lakh women, SC and ST entrepreneurs with an 85 per cent credit guarantee backed by a Rs 4,111 crore corpus.
What happened
- The Cabinet approved continuation of Stand-Up India for five years, up to 31 March 2031.
- Target: financial assistance to an additional 2.5 lakh entrepreneurs; the scheme has facilitated loans to more than 2.75 lakh since April 2016.
- Eligible: Women, SC and ST entrepreneurs setting up greenfield enterprises in manufacturing, services, trading and agri-allied activities.
- Loans of above Rs 10 lakh and up to Rs 1 crore, composite or term, up to 85 per cent of the project cost.
- A credit guarantee of 85 per cent of the loan, a 0.50 per cent fee and a Rs 4,111 crore corpus.
For Prelims
- Stand-Up India: launched in April 2016 to promote entrepreneurship among women, SC and ST borrowers through bank loans for new enterprises.
- Loan size: bank loans of Rs 10 lakh to Rs 1 crore for a new enterprise in manufacturing, services, trading or agri-allied activity.
- Greenfield enterprise: a new unit set up for the first time; the scheme funds only new or greenfield enterprises.
- Credit guarantee: cover of 85 per cent of the loan amount, a standard fee of 0.50 per cent and a corpus of Rs 4,111 crore.
- Overlap with Mudra: PM Mudra loans go up to Rs 20 lakh while Stand-Up India starts above Rs 10 lakh; the Cabinet continued the Mudra credit guarantee fund the same day.
- Track record: 2.75 lakh cumulative loans worth Rs 62,790 crore were sanctioned to SC, ST and women entrepreneurs as on 31 March 2025, according to PIB.
- Same end date: continuation runs to 31 March 2031, the same date as the Credit Guarantee Fund for Micro Units extension, whose cycle is FY 2026-27 to FY 2030-31.
- Target versus record: 2.5 lakh new beneficiaries in five years is about 50,000 a year, against about 31,000 a year since April 2016.
For UPSC: Stand-Up India continued to 31 March 2031: Rs 10 lakh to Rs 1 crore loans, women/SC/ST greenfield; 85 per cent guarantee, 0.50 per cent fee; Rs 4,111 crore corpus.
What it is NOT: The release does not give the amount sanctioned, the split of loans among women, SC and ST borrowers, defaults or guarantee claims paid. It does not say how the Rs 4,111 crore corpus was sized, whether the 2.5 lakh target counts new borrowers only, or how many loans went to first-time entrepreneurs. The 2.75 lakh figure matches the number reported for March 2025, so progress since then is not shown. It does not name the agency that runs the guarantee.
For Mains
Syllabus: GS2.12 · GS3.2 · Linkage L1
Anchor
Women, SC and ST households hold little collateral and face thin bank networks. A scheme that pairs a loan band with a guarantee targets the barrier at its source, which is the lender's fear of default.
Substantiation (data)
Stand-Up India continues to 31 March 2031 with an 85 per cent guarantee, a 0.50 per cent fee and a Rs 4,111 crore corpus. It has facilitated over 2.75 lakh loans since April 2016 and aims at 2.5 lakh more in five years.
Position
A band starting above Rs 10 lakh serves larger greenfield units than the average Mudra loan, which is about Rs 71,800 (PRID 2334976). The 85 per cent cover makes banks willing to lend to first-time owners.
Counterpoint
The target implies 50,000 loans a year against about 31,000 so far, yet the release gives no loan value, default data or caste and gender split. The same 2.75 lakh figure appears for March 2025, so recent progress is unclear.
Way forward
Publish yearly sanctions by group and State, track enterprise survival and jobs, require branch-level reporting on rejections, add handholding and market linkage, and test whether 85 per cent is the right cover.
Conclusion
The continuation keeps a purpose-built channel open. Its value rests on whether new greenfield units survive past the loan period.
Deploys into: Inclusive finance for women, SC and ST entrepreneurs · Credit guarantee and bank lending · Scheme continuation across Finance Commission cycles · Greenfield enterprise creation and jobs
Cabinet · 2026-11-11 · PRID 2334978 · PIB source ↗