Stand-Up India Scheme Extended to 2031: Loans for Women, SC and ST Founders

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation of the Stand-Up India Scheme on 11 November 2026. The scheme now runs for another five years, up to 31 March 2031, backed by a credit guarantee corpus of ₹4,111 crore.

If you are a woman, Scheduled Caste or Scheduled Tribe founder planning a new business, this scheme is built for you. It is a bank loan, not a grant, but the government guarantee behind it is what makes a lender more willing to say yes.

What the Cabinet approved

According to the PIB release on the decision:

• The scheme continues for a period of 5 years, up to 31 March 2031.
• The Cabinet approved a credit guarantee corpus of ₹4,111 crore.
• The scheme aims to provide financial assistance to an additional 2.5 lakh entrepreneurs over five years. The release's headline describes this as a target to cover a minimum of 2.5 lakh beneficiaries.
• Its stated purpose is to promote entrepreneurship among women, Scheduled Castes (SCs) and Scheduled Tribes (STs).

The scheme is not new. It was launched in April 2016, and since then it has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, according to the official statement.

Who can borrow

The PIB release lists the eligible borrowers as women, SC and ST entrepreneurs setting up new or greenfield enterprises.

Two things stand out for a founder:

• It is for new enterprises. The release speaks of setting up new or greenfield enterprises. It does not describe support for expanding a business you already run.
• The release does not list further conditions. Detailed eligibility rules beyond the borrower categories and the new-enterprise requirement are not part of the Cabinet announcement we reviewed.

How much you can borrow, and in what form

Under the salient features in the PIB release:

• Loan size: above ₹10 lakh and up to ₹1 crore.
• Share of the project: the loan can cover up to 85% of the project cost.
• Loan form: either a composite loan (working capital plus a term loan) or a term loan alone.

The 85% cap on project cost means you should expect to bring the rest of the money from your own funds or other sources. The release does not say how the remaining share must be arranged.

Which sectors are covered

The PIB release lists four eligible sectors:

• Manufacturing
• Services
• Trading
• Agri allied activities

That is broad. Most product, service and trading businesses a first-time founder would start fall into one of these groups.

The guarantee and its fee

This is the part that matters most to a lender:

• Credit guarantee coverage: 85% of the loan amount.
• Guarantee fee: a standard fee of 0.50%.

A guarantee means that if a covered loan goes bad, the guarantee pays the lender a large share of the loss. That lowers the bank's risk and is the main reason a scheme like this can help a founder without a long credit history or much collateral. The release does not say who pays the guarantee fee or how it is collected.

The ₹4,111 crore corpus approved by the Cabinet is the pool that backs these guarantees.

Where the reports differ

The reports agree on the main figures. A few small differences in wording:

• BizzBuzz described the loan range as ₹10 lakh to ₹1 crore. The PIB release says amounts above ₹10 lakh and up to ₹1 crore. Going by the PIB release, a loan of exactly ₹10 lakh is below the range.
• The Hans India (IANS) described guarantee coverage as up to 85% of the loan amount. The PIB release states it as 85% of the loan amount, and we follow the PIB wording.

What has not been announced

The Cabinet release is about continuing the scheme, so it leaves out the practical details a borrower needs:

• How to apply. None of the reports describe the application process, and The Hans India report notes that its article does not cover it.
• Interest rates, tenure and repayment terms. Not stated in the sources.
• Collateral and margin rules. Not stated, beyond the 85% project-cost cap.
• Any changes from the earlier version of the scheme. The release does not say whether any terms have changed with this continuation.

Until operating guidelines for the extended period are published, ask your bank directly rather than relying on older summaries.

What this means for you

• Check that you fit the basics. You should be a woman, SC or ST entrepreneur, and the loan should be for a new enterprise in manufacturing, services, trading or agri allied activities.
• Size your project before you go to the bank. The loan runs from above ₹10 lakh up to ₹1 crore and can cover up to 85% of the project cost, so work out the full project cost and how you will fund the rest.
• Decide what you need the money for. If you need both working capital and a term loan, ask about the composite option. If you only need to buy assets, a term loan may be enough.
• Talk to your bank branch. Ask whether it lends under Stand-Up India, what documents it wants and what interest rate it would offer. These details were not part of the Cabinet decision.
• There is no rush. The scheme now runs until 31 March 2031, so take the time to prepare a solid project plan rather than applying with a thin one.

Sources: PIB release on the Cabinet decision; BizzBuzz report; The Hans India (IANS) report.

Cover photo: Samiul Haque Bhuyan on Unsplash