The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Stand-Up India Scheme for five years until March 31, 2031, with a target of extending financial assistance to an additional 2.5 lakh entrepreneurs.
The scheme aims to promote entrepreneurship among women, Scheduled Castes (SCs) and Scheduled Tribes (STs) by facilitating loans for setting up greenfield enterprises. Since its launch in April 2016, it has supported more than 2.75 lakh women, SC and ST entrepreneurs.
Under the scheme, eligible borrowers can avail composite loans (working capital and term loans) or term loans ranging from above Rs. 10 lakh to Rs. 1 crore, covering up to 85% of the project cost.
The scheme covers manufacturing, services, trading and agriculture-allied activities, with credit guarantee coverage of 85% of the loan amount and a standard guarantee fee of 0.50%.
The extension is aimed at improving access to institutional credit, encouraging enterprise creation and promoting inclusive economic growth.