The Union Cabinet has approved a five-year extension of the Stand-Up India Scheme until March 31, 2031, with a 41.11-billion-rupee credit guarantee corpus to support lending to women and entrepreneurs from Scheduled Castes and Scheduled Tribes. The government aims to provide financial assistance to at least 250,000 additional entrepreneurs over the next five years, according to an official statement.

The scheme, launched in April 2016, has facilitated loans to more than 275,000 entrepreneurs from eligible categories.

Under the extended scheme, borrowers can obtain loans exceeding ₹1 million and up to ₹10 million to establish new enterprises in manufacturing, services, trading and agriculture-allied activities.The loans can cover up to 85% of project costs and may comprise term loans, working capital or a combination of both.

The credit guarantee mechanism will cover 85% of the loan amount, with a standard guarantee fee of 0.50%. The government said the extension would improve access to institutional credit for underserved entrepreneurs and support the creation of new businesses.

The guarantee corpus is intended to support bank lending by providing credit-risk protection, rather than directly financing the full value of loans sanctioned under the scheme.