In a major push to strengthen entrepreneurship and promote inclusive economic growth, 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), expanding access to institutional credit and encouraging the creation of new enterprises. Since its launch in April 2016, the initiative has already facilitated loans to more than 2.75 lakh entrepreneurs, marking a significant step towards making entrepreneurship more accessible to traditionally underserved sections of society.
The continuation of the Stand-Up India Scheme reflects the government's commitment to creating an inclusive entrepreneurial ecosystem in which access to finance does not become a barrier to economic participation. By extending the programme until March 31, 2031, the government intends to build on its achievements over the past decade and encourage more women and entrepreneurs belonging to SC and ST communities to establish and expand their businesses.
Under the scheme, eligible beneficiaries can obtain loans ranging from above Rs. 10 lakh to Rs. 1 crore for establishing greenfield enterprises, meaning businesses being set up for the first time in the manufacturing, services, trading and agriculture-allied sectors. The financial assistance can be provided either as a composite loan covering working capital and term-loan requirements or as a term loan, depending on the nature and requirements of the proposed project. The loan can cover up to 85 per cent of the total project cost, reducing the financial burden on first-time entrepreneurs and helping them translate business ideas into viable enterprises.
Another important feature is the credit guarantee coverage of 85 per cent of the loan amount, which is intended to provide greater assurance to lending institutions and facilitate credit flow to eligible borrowers. The scheme carries a standard guarantee fee of 0.50 per cent. Such provisions are particularly relevant for entrepreneurs who may have viable business proposals but face difficulties in accessing conventional bank finance because of limited financial resources or inadequate collateral.
The scheme's expanded reach is expected to generate opportunities beyond individual business ownership. By encouraging entrepreneurship among women and members of SC and ST communities, it can contribute to employment generation, local economic development and the creation of new sources of income. Women-led enterprises, in particular, can strengthen financial independence and increase women's participation in productive economic activities. Similarly, improved access to institutional finance for SC and ST entrepreneurs can help address longstanding barriers to business ownership and economic advancement.
With an additional target of supporting 2.5 lakh entrepreneurs over the next five years, the government is seeking to take the benefits of formal credit and enterprise creation to a wider section of society. The continuation of Stand-Up India therefore represents not merely an extension of a financial assistance programme but also an effort to make entrepreneurship a more inclusive instrument of economic empowerment. Its success will ultimately depend on effective implementation, awareness among eligible beneficiaries and timely access to credit, enabling more aspiring entrepreneurs to transform their ambitions into sustainable businesses.
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