Stand-Up India Scheme Extended Till 2031: Bank Loans for Women, SC and ST Entrepreneurs
The Union Cabinet approved the continuation of the Stand-Up India Scheme for five more years, till 31 March 2031.
The scheme gives bank loans of above ₹10 lakh and up to ₹1 crore to women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs who are starting a new business in manufacturing, services, trading or agriculture-allied activities.
A credit guarantee corpus of ₹4,111 crore has been approved. The guarantee will cover 85% of the loan amount, and the guarantee fee has been standardised at 0.5%, with no extra risk premium.
Loans can now cover up to 85% of the project cost, as a term loan or a mix of term loan and working capital.
The extension aims to help at least 2.5 lakh more entrepreneurs over the next five years. The target remains an average of two loans per bank branch: one to a woman and one to an SC/ST entrepreneur.
Since its launch in April 2016, the scheme has helped more than 2.75 lakh entrepreneurs get loans.
Stand-Up India Scheme
Stand-Up India is a central government scheme that helps women, Scheduled Caste (SC) and Scheduled Tribe (ST) people start their own new business with a bank loan. Under it, banks give loans of above ₹10 lakh and up to ₹1 crore for a greenfield (brand new) enterprise. Every bank branch is expected to give at least one such loan to a woman and at least one to an SC or ST borrower. The government backs these loans with a credit guarantee, so banks feel safer lending to first-time business owners.
The Cabinet has extended Stand-Up India for five more years and made its guarantee stronger and cheaper: 85% cover at a flat 0.5% fee. This is meant to make bank branches more willing to lend to first-time women, SC and ST entrepreneurs, so that 2.5 lakh more new businesses can be started by 2031.
National Credit Guarantee Trustee Company Limited (NCGTC)
The National Credit Guarantee Trustee Company Limited (NCGTC) is a government-owned company that runs India's main credit guarantee funds. A credit guarantee is a promise to a bank: "If this borrower fails to repay, we will pay you most of your loss." NCGTC manages these promises for loans to students, micro businesses, women and SC/ST entrepreneurs, startups, exporters and others. It does not give loans itself and does not give grants; it only shares the lender's risk.
The Stand-Up India guarantee is run through NCGTC. The 2026 extension puts in a fresh corpus of ₹4,111 crore and sets the guarantee cover at 85% of the loan, with a flat 0.5% fee. This lowers the risk for banks and the cost for borrowers, which is the main lever the government is using to push more loans to women, SC and ST entrepreneurs.
- Stand-Up India extended till 31 March 2031 by the Union Cabinet on 11 November 2026
- Loan size: above ₹10 lakh and up to ₹1 crore, for greenfield enterprises of women, SC and ST entrepreneurs
- Credit guarantee corpus: ₹4,111 crore; guarantee cover: 85% of loan; fee: 0.5%, no extra risk premium
- Loan can cover up to 85% of project cost
- Target: at least 2.5 lakh additional entrepreneurs over five years; average two loans per bank branch
- Beneficiaries since 2016: over 2.75 lakh
- Scheme launched 5 April 2016; nodal department: Department of Financial Services
- Guarantee managed by NCGTC (incorporated 2014)