Union Cabinet Extends Stand-Up India Scheme Till March 2031
The Union Cabinet has approved the extension of the Stand-Up India Scheme for five more years until March 31, 2031. The scheme facilitates bank loans ranging from above ₹10 lakh to ₹1 crore for greenfield enterprises set up by women and SC/ST entrepreneurs.
What happened
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation and extension of the Stand-Up India Scheme. The scheme is now valid for five more years, extending its operation up to March 31, 2031.
Along with the extension, the Cabinet cleared a Credit Guarantee Corpus of ₹4,111 crore to support lending under the scheme. The extended scheme targets providing financial assistance to a minimum of 2.5 lakh additional entrepreneurs over the five-year period.
Important dates
| Scheme Launch Date | April 2016 |
|---|---|
| New Extension Validity | March 31, 2031 |
Eligibility
- Individual applicants must be women or belong to Scheduled Castes (SC) or Scheduled Tribes (ST), and must be above 18 years of age.
- For non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by an SC/ST or woman entrepreneur.
- Loans are provided strictly for establishing new (greenfield) enterprises in manufacturing, services, trading, and agriculture-allied activities.
- Loan amounts range from above ₹10.00 lakh up to ₹1.00 crore, covering up to 85% of the project cost.
📌 Static GK links
- The Stand-Up India Scheme was launched on April 5, 2016.
- The National Credit Guarantee Trustee Company Limited (NCGTC) operates under the Ministry of Finance.
- The scheme offers 85% credit guarantee coverage with a standard guarantee fee of 0.50%.
What candidates should do
- Note down the exact extension year (2031) and the target beneficiaries (women, SC, and ST entrepreneurs) for objective questions.
- Memorize the loan limits (above ₹10 lakh up to ₹1 crore) and the administrative ministry for banking and financial awareness sections.
- Revise the role of the National Credit Guarantee Trustee Company Limited (NCGTC) in managing the credit guarantee.
PrepZen analysis
The extension of the Stand-Up India Scheme till March 2031 underscores the government's continued focus on grassroots entrepreneurship and financial inclusion. By targeting women and marginalized communities (SC/ST) for greenfield enterprises, the scheme bridges credit gaps in the manufacturing, services, trading, and agriculture-allied sectors. For aspirants preparing for banking and regulatory exams like IBPS, SBI, RBI, and NABARD, this update is crucial for questions related to government schemes, credit guarantee mechanisms, and financial inclusion targets.
Practice questions
Q1. The Stand-Up India Scheme has been extended until which date by the Union Cabinet?
Q2. What is the loan amount range provided under the Stand-Up India Scheme?
Q3. Which entity manages the credit guarantee fund for the Stand-Up India Scheme?
The scheme is now valid for five more years, until March 31, 2031.
It supports greenfield enterprises by women and SC/ST entrepreneurs.
Loans range from over ₹10 lakh to ₹1 crore, backed by credit guarantee.
🎯 Key Point: Stand-Up India scheme extended until March 31, 2031.
FAQs
When was the Stand-Up India Scheme originally launched?
The Stand-Up India Scheme was launched in April 2016.
Who are the eligible beneficiaries under the Stand-Up India Scheme?
The scheme targets women entrepreneurs as well as individuals belonging to Scheduled Castes (SC) and Scheduled Tribes (ST).
What type of enterprises are eligible for loans under this scheme?
Loans are provided strictly for setting up greenfield (new) enterprises in manufacturing, services, trading, and agriculture-allied activities.
Which ministry administers the Stand-Up India Scheme?
The scheme is administered by the Department of Financial Services under the Ministry of Finance, Government of India.
Sources and references
- insightsonindia.com (www.insightsonindia.com)
- livemint.com (www.livemint.com)
- scribd.com (www.scribd.com)
Prepared by PrepZen for exam preparation. Consult the linked sources for original announcements and current details. Corrections policy. Spotted an error? Write to prepzen.app@gmail.com.
Practice Quiz — 12 November 2026
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