The Union Cabinet approved the continuation of Stand-Up India for five years up to 31 March 2031 on 11 November 2026. The scheme is intended to expand formal business credit for women and Scheduled Caste and Scheduled Tribe entrepreneurs setting up new enterprises.
Key terms announced for the extended scheme
| Feature | Confirmed term |
|---|---|
| Scheme period | Continued for five years up to 31 March 2031. |
| Eligible borrowers | Women and SC/ST entrepreneurs establishing new or greenfield enterprises. |
| Loan amount | Above ₹10 lakh and up to ₹1 crore. |
| Loan structure | Composite loan covering working capital and term finance, or a term loan. |
| Project-cost ceiling | Loan may cover up to 85% of project cost. |
| Eligible sectors | Manufacturing, services, trading and agriculture-allied activities. |
| Credit-guarantee cover | 85% of the loan amount. |
| Standard guarantee fee | 0.50%. |
Who can apply?
The Cabinet release identifies women and SC/ST entrepreneurs setting up a new or greenfield enterprise. The established scheme criteria also require an individual applicant to be at least 18 years old.
Where the borrower is a company, partnership, LLP or another non-individual enterprise, at least 51% of the shareholding and controlling stake must be held by an eligible woman or SC/ST entrepreneur. The borrower should not be in default to a bank or financial institution.
“Greenfield” means the applicant’s first venture in the relevant manufacturing, services, trading or agriculture-allied activity. The scheme is not a general refinancing route for any existing business loan.
How much can the bank finance?
The approved range is above ₹10 lakh and up to ₹1 crore, subject to a maximum of 85% of project cost. The ceiling is not a promise that the bank will finance 85% in every case: the final amount depends on appraisal, eligible project cost, repayment capacity and the lender’s sanction.
A composite facility may combine term finance for assets with working capital. The release also permits a term-loan-only structure. Applicants should separate one-time capital costs from operating cash needs in the project report so that the proposed structure is clear.
What does 85% credit-guarantee coverage mean?
The Government’s credit-guarantee mechanism covers 85% of the loan amount for the lender, with a standard guarantee fee of 0.50%. This support is designed to improve access to credit; it does not cancel the borrower’s repayment obligation, create a grant or remove the bank’s appraisal process.
An applicant should ask the lender how the guarantee fee and other permitted charges will be treated in the sanction. The Cabinet release states the standard guarantee fee but does not prescribe every borrower-level charge or interest rate.
What should an applicant prepare?
- Eligibility evidence. Keep identity, age and applicable SC/ST or women-promoter documentation ready.
- Ownership and control records. For a non-individual enterprise, demonstrate at least 51% eligible shareholding and controlling stake.
- A greenfield explanation. Describe the proposed activity and why it is the promoter’s first venture in that line of business.
- A practical project report. Set out products or services, market, location, approvals, implementation schedule, project cost, funding plan, sales assumptions and cash flow.
- Separate term and working-capital needs. Link each requested facility to a supported use of funds.
- Promoter contribution evidence. Since the scheme loan may cover up to 85% of project cost, explain how the balance and any ineligible expenditure will be funded.
- Credit and default checks. Review existing borrowings and resolve inaccuracies or overdue amounts before application.
- Sector approvals. Identify registrations, licences, land or lease documents, quotations and environmental or local permissions needed for the proposed activity.
How to start the application
An eligible entrepreneur can approach a branch of a scheduled commercial bank or use the official Stand-Up India portal for guidance and connection with a lender. The Lead District Manager is another recognised route for assistance.
- confirm that the proposal is genuinely greenfield and falls within an eligible sector;
- choose the correct borrowing entity and complete its ownership structure before submission;
- prepare a realistic project report and supporting quotations rather than applying only for the maximum amount;
- submit through the official portal or an eligible bank branch and retain the acknowledgement; and
- respond promptly to appraisal questions and compare the sanction with the project’s actual cash-flow capacity.
Important cautions
- Approval is not automatic. The bank must still assess the proposal and borrower.
- Guarantee cover is for credit support. It does not make the loan non-repayable.
- The ₹1 crore figure is a ceiling. The appropriate loan depends on the eligible project and repayment capacity.
- Use official channels. Do not pay an intermediary who promises guaranteed sanction or asks for banking credentials.
- Check the sanction terms. Interest, security arrangements, repayment, moratorium and charges must be read from the lender’s written offer; the Cabinet release does not set one universal package for every loan.
Reviewed on 14 November 2026. The Cabinet decision was announced on 11 November 2026 and continues Stand-Up India up to 31 March 2031.