For Prelims: Greenfield enterprise, Composite loan, Credit guarantee
For Mains: Economy: Financial inclusion and credit; Society: Inclusive development and entrepreneurship
Source:
PIB
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- Stand-Up India was launched in April 2016.
- The scheme has been approved for continuation until 31 March 2031.
- The continuation targets financial assistance to an additional 2.5 lakh entrepreneurs.
- The approved credit guarantee corpus is ₹4,111 crore.
- The standard guarantee fee is 0.50%.
The news
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the continuation of the Stand-Up India Scheme for five years until 31 March 2031. The decision, announced on 11 November 2026, aims to provide financial assistance to an additional 2.5 lakh women, Scheduled Caste and Scheduled Tribe entrepreneurs. A credit guarantee corpus of ₹4,111 crore was also approved to support lending under the scheme.
Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs. Eligible borrowers can seek loans above ₹10 lakh and up to ₹1 crore for new or greenfield enterprises, with financing covering up to 85% of the project cost. The credit guarantee covers 85% of the loan amount, and a standard guarantee fee of 0.50% is charged. Manufacturing, services, trading and allied agricultural activities are eligible sectors.
Why in the news?
The Union Cabinet approved the continuation of the Stand-Up India Scheme for five more years with a ₹4,111 crore credit guarantee corpus, targeting an additional 2.5 lakh women, SC and ST entrepreneurs. The decision matters because it extends a key credit-support channel for underserved communities beyond its original term.
How does the scheme work?
Stand-Up India provides composite loans—combining term finance and working capital—or term loans for greenfield enterprises. Loans are available above ₹10 lakh and up to ₹1 crore, with financing of up to 85% of the project cost. The credit guarantee covers 85% of the loan amount, reducing lenders' risk, while borrowers pay a standard guarantee fee of 0.50%. Eligible sectors include manufacturing, services, trading and allied agricultural activities.
What has the scheme achieved and what remains?
Since its launch in April 2016, the scheme has facilitated loans to more than 2.75 lakh women, SC and ST entrepreneurs, establishing a credit-support channel for groups that may face barriers when setting up enterprises. The continuation targets an additional 2.5 lakh entrepreneurs over five years. Effective implementation should focus on awareness, accessible application processes and monitoring whether credit reaches eligible entrepreneurs across sectors. Tracking loan sanction, enterprise survival and repayment outcomes would help assess inclusion. Enterprise guidance and market access can complement credit without treating loan approval alone as proof of business success.
Facts and terms for exams
- Greenfield enterprise:
- A new enterprise established from the beginning rather than through the expansion of an existing business.
- Composite loan:
- A loan combining term finance for longer-term requirements and working capital for day-to-day business operations.
- Credit guarantee:
- An arrangement under which a guarantor covers a specified share of a lender's eligible loss if a borrower defaults.
Why it matters for exams
Exams: UPSC, BPSC, UPPSC, MPPSC, RPSC RAS, HPSC HCS, UKPSC, SSC, Bank
Syllabus: Economy: Financial inclusion and credit; Society: Inclusive development and entrepreneurship
Common mistake: Examiners may swap the two 85% limits: project-cost financing is up to 85% of project cost, while guarantee coverage is 85% of the loan amount. The minimum loan is above ₹10 lakh, not ₹10 lakh or above.
Mains question
Examine the role of the Stand-Up India Scheme in promoting entrepreneurship among women and Scheduled Caste and Scheduled Tribe communities. Discuss its achievements and the challenges in ensuring inclusive credit access.
Stuck? Get it in one tap
Stand-Up India helps eligible women and Scheduled Caste and Scheduled Tribe entrepreneurs obtain loans to start new businesses. A credit guarantee covers a specified share of the loan amount, helping protect lenders against eligible losses. The scheme has been approved to continue until March 2031.
- Stand-Up India was launched in April 2016.
- The scheme has been approved for continuation until 31 March 2031.
- The continuation targets financial assistance to an additional 2.5 lakh entrepreneurs.
- The approved credit guarantee corpus is ₹4,111 crore.
- The standard guarantee fee is 0.50%.
- Economy: Financial inclusion and credit
- Society: Inclusive development and entrepreneurship
Related concepts: Greenfield enterprise, Composite loan, Credit guarantee
Practice questions
Pick an answer, then read the explanation.
- Q1Hard
Consider the following statements about Stand-Up India as continued until 2031:
- 1.Eligible borrowers include women, Scheduled Caste and Scheduled Tribe entrepreneurs establishing greenfield enterprises.
- 2.The scheme provides credit guarantee coverage of 0.50% of the loan amount.
- 3.Eligible sectors include allied agricultural activities.
Which of the statements given above are correct?
Explanation: Statements 1 and 3 correctly identify eligible entrepreneurs and a covered sector. Statement 2 is incorrect: guarantee coverage is 85% of the loan amount, whereas 0.50% is the standard guarantee fee.
- Q2Medium
What credit guarantee corpus was approved for Stand-Up India in November 2026?
Explanation: The approved credit guarantee corpus is ₹4,111 crore. The other amounts differ from the approved corpus.
- Q3Medium
What is the principal objective of the Stand-Up India Scheme continued until 2031?
Explanation: Stand-Up India supports eligible entrepreneurs in setting up new enterprises. It offers loans rather than replacing them with grants, covers several sectors and permits term or composite loans.
Frequently asked questions
1. Until when has Stand-Up India been extended?
The scheme has been approved for continuation until 31 March 2031.
2. Who can benefit from Stand-Up India?
Women and Scheduled Caste and Scheduled Tribe entrepreneurs setting up new or greenfield enterprises are eligible.
3. What is the loan range under Stand-Up India?
Eligible loans are above ₹10 lakh and up to ₹1 crore, with financing of up to 85% of project cost.
4. What credit guarantee corpus was approved for Stand-Up India?
A credit guarantee corpus of ₹4,111 crore was approved.
All sources
- Original11 November 2026 · Read story
- Merged11 November 2026 · Read story
