Stand-Up India is back and is back with a bigger safety net. The Union Cabinet has extended the scheme for a further five years (to 31st March 2031) and has approved a \u20b94,111 crore credit guarantee corpus in support of it. The objective is to bring in another 2.5 lakh women, SC and ST entrepreneurs into formal bank credit.<\/p>\n
The economics are what make this news for business. Eligible entrepreneurs can borrow in excess of \u20b910 lakh and up to \u20b91 crore for a new venture with bank finance covering up to 85% of the project cost. Lenders get guarantee cover on 85% of the loan at a standard rate of 0.50% with no additional risk premium.<\/p>\n
That ticket size is what enables a first time entrepreneur to build something of real substance: not a shop or a single machine, but a full greenfield manufacturing unit with a shed, a production line and working capital. Agro-processing, leather goods, hygiene products, precast concrete and garment exports all fall into that bracket. For the MSME, the manufacturer, the investor and the startup the renewal creates five years of new factory demand from a group which has long been underserved by formal credit. (Stand-Up India Scheme)<\/p>\n