Politics · India · 9 hrs ago
India extends Stand-Up India and Mudra credit guarantee schemes for five years
India’s Union Cabinet extended two credit guarantee schemes for five years to support lending to entrepreneurs.
Stand-Up India is for women and members of Scheduled Castes and Scheduled Tribes starting new businesses, with loans above ₹10 lakh and up to ₹1 crore.
The government set aside ₹4,111 crore for Stand-Up India, which is intended to help at least 250,000 more entrepreneurs.
The scheme has already facilitated loans to more than 275,000 women and SC/ST entrepreneurs, according to the government.
The Cabinet also allocated ₹5,000 crore to the Mudra credit guarantee fund, which supports collateral-free loans, including Mudra loans of up to ₹20 lakh.
The annual guarantee fee for Mudra loans will fall from 1% to 0.75%, while Stand-Up India’s guarantee cover will be 85%.
The extension is intended to improve access to credit, and Stand-Up India will continue until March 31, 2031.
The Union Cabinet approved a five-year continuation of the Stand-Up India and Pradhan Mantri Mudra Yojana credit guarantee schemes.
It allocated ₹4,111 crore for the Stand-Up India fund and ₹5,000 crore for the Mudra fund.
Stand-Up India is set to continue until March 31, 2031, and aims to support at least 250,000 additional entrepreneurs.
The schemes are intended to expand collateral-free credit, including for women, SC/ST entrepreneurs and micro businesses.
The annual guarantee fee under the Mudra scheme will fall from 1% to 0.75%.
- Who
- The Union Cabinet approved the extensions.
- What
- It continued the Stand-Up India and Mudra credit guarantee schemes for five years and allocated funds to support them.
- When
- The Cabinet approved the extensions on Wednesday, November 11, 2026.
- Where
- India.
- Why
- To expand access to credit for entrepreneurs, including women, SC/ST and micro entrepreneurs.
This story does not have two clearly opposing sides.
The Stand-Up India scheme was launched.
The Union Cabinet approved the five-year continuation of the schemes.
The extended Stand-Up India scheme is scheduled to end.
- Stand-Up India corpus
- ₹4,111 crore
- Mudra fund allocation
- ₹5,000 crore
- Stand-Up India target
- At least 250,000 additional entrepreneurs
- Stand-Up India end date
- March 31, 2031
- Mudra annual guarantee fee
- Reduced from 1% to 0.75%