Key Facts

The Union Cabinet chaired by Prime Minister Narendra Modi approved a five-year extension of the Stand-Up India Scheme up to 31 March 2031, continuing its mission to facilitate institutional credit to underprivileged entrepreneurs. Launched in April 2016, the scheme facilitates bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch of all scheduled commercial banks for setting up greenfield enterprises. The extension incorporates modified guidelines to expand coverage to non-farm services, agro-allied enterprises, and green-energy startups, reinforcing economic self-reliance and inclusive financial architecture.

GK Context

The Stand-Up India Scheme is anchored by the Department of Financial Services (DFS) under the Ministry of Finance, with operations supported by the Small Industries Development Bank of India (SIDBI) and the National Credit Guarantee Trustee Company (NCGTC), which provides credit guarantee cover through the Credit Guarantee Scheme for Stand-Up India (CGSSI). Borrowers receive handholding support, skill development, and financial literacy through the Stand-Up India portal. In 2021, the margin money requirement was reduced from up to 25% to up to 15%, easing initial capital burdens on marginalised entrepreneurs.