Stand-Up India extended to 2031: who can get a loan of ₹10 lakh to ₹1 crore and how it works

The Union Cabinet has approved the continuation of the Stand-Up India scheme for five more years, until 31 March 2031. The scheme gives loans to women and Scheduled Caste and Scheduled Tribe entrepreneurs.

1. What changed

The scheme continues to 31 March 2031 and aims to support another 2.5 lakh entrepreneurs. Since its launch in April 2016 it has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, the government said.

2. Who can borrow

Women, SC and ST entrepreneurs setting up new, greenfield enterprises.

3. How big the loan is

Composite loans (working capital plus term loan) or term loans above ₹10 lakh and up to ₹1 crore, covering up to 85% of the project cost.

4. Which businesses

Manufacturing, services, trading and activities allied to agriculture.

5. The guarantee

The loan carries a credit guarantee of 85% of the loan amount, with a standard guarantee fee of 0.50%. In plain terms, if a borrower defaults, the guarantee covers most of the lender’s loss (BDT’s plain-language reading), which is meant to make banks more willing to lend to first-time entrepreneurs.

What the release does not say

It does not give interest rates, the application process or any change to the rules. Check with your bank branch or the scheme’s official portal for those.

The government says the continuation will widen credit access for underserved communities and support inclusive growth.

This is an explainer, not financial advice.