Cabinet continues Stand-Up India with credit guarantee corpus until 2031

The Union Cabinet approved the continuation of Stand-Up India on 11 November 2026. The five-year approval runs until 31 March 2031 and provides for a credit guarantee corpus of ₹4,111 crore. The government aims to help at least 2.5 lakh additional entrepreneurs during this period. The scheme supports women and members of Scheduled Castes and Scheduled Tribes who are establishing new, or greenfield, enterprises.

Support may take the form of a term loan or a composite loan that combines a term loan with working capital. The approved loan range is above ₹10 lakh and up to ₹1 crore, with financing able to meet up to 85% of project cost. Eligible activities include manufacturing, services, trading and agriculture-related business. Credit guarantee coverage is 85% of the loan amount, and the standard guarantee fee is 0.50%. A credit guarantee supports the lending arrangement; the borrower still receives a loan rather than a cash grant.

Facts to remember

• Approval date: 11 November 2026; continuation until 31 March 2031.
• Credit guarantee corpus: ₹4,111 crore; target: at least 2.5 lakh additional entrepreneurs.
• Eligible groups: women and Scheduled Caste or Scheduled Tribe entrepreneurs establishing greenfield enterprises.
• Loan range: above ₹10 lakh and up to ₹1 crore.

Background

Stand-Up India began in April 2016. Since launch, it has facilitated loans to more than 2.75 lakh entrepreneurs from its eligible groups. The scheme links access to institutional credit with new enterprise creation, while its guarantee arrangements address a portion of the risk borne by the lender.

Why it matters for exams

For CLAT Economy and government schemes, distinguish the guarantee corpus, individual loan limit and targeted beneficiary groups.