The Union Cabinet has extended the Stand-Up India scheme, according to reporting by Indiablooms. The scheme backs bank loans of up to Rs 1 crore for new businesses.
If you're a woman or from the SC or ST community, this matters to you. You can still plan a first business loan under the scheme. Ask your bank for the exact end date and terms.
Key takeaways
- The Cabinet has extended Stand-Up India, as reported by Indiablooms.
- Loans under the scheme usually run from Rs 10 lakh to Rs 1 crore.
- It is meant for women and SC or ST first-time entrepreneurs.
- You still need to put in your own share of the project cost.
- Check your bank's exact terms before you apply.
How the Stand-Up India scheme works
Stand-Up India began in 2016. Its goal is simple. It helps women and SC or ST entrepreneurs start a new business using bank credit.
Each bank branch is expected to lend to at least one woman and one SC or ST borrower. The loan is for a brand-new venture, often called a greenfield project. It can be in manufacturing, services or trading.
It's usually a composite loan. That means one loan covers both machinery and the money to run the business day to day. Repayment can stretch up to seven years. You may also get a short break before repayments begin.
These are the standing rules of the scheme. Your bank will confirm the details that apply to you.
What it means for your wallet
Banks usually fund up to 75% of the project cost. You bring the remaining 25%. Here's how that looks at different project sizes.
| Project cost | Your 25% share | Bank loan at 75% |
|---|---|---|
| Rs 20 lakh | Rs 5 lakh | Rs 15 lakh |
| Rs 40 lakh | Rs 10 lakh | Rs 30 lakh |
| Rs 80 lakh | Rs 20 lakh | Rs 60 lakh |
| Rs 1.33 crore | about Rs 33 lakh | about Rs 1 crore |
Take the Rs 30 lakh loan. Say the rate is 11% a year, which is only an example. Over seven years, the EMI is roughly Rs 51,000 a month. EMI means the fixed amount you pay the bank every month.
Rates differ from bank to bank. Try the EMI calculator with your own numbers before you decide.
Who is affected
The main winners are women and SC or ST entrepreneurs who want to start something new. A shop, a small factory or a service business can all fit. If you already run a business, this scheme is usually not meant for that unit.
Banks are affected too. They keep a clear target for lending to first-time founders. If you're outside these groups, other options exist. You can look at business loan schemes or a personal loan for small needs, though costs differ.
What to do now
You don't need to rush. The extension gives you time to get ready. Use these steps.
- Write a simple project plan with costs and expected monthly sales.
- Work out your 25% share and where the money will come from.
- Check your credit history and the basics on the eligibility page.
- Visit a scheduled commercial bank branch and ask about Stand-Up India.
- Compare the quoted rate with the interest rates tables.
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Frequently asked questions
Who can get a Stand-Up India loan?
Women and SC or ST entrepreneurs starting a new business can apply. Your bank will confirm the full rules.
Do I need my own money?
Yes. Banks usually expect you to put in about 25% of the project cost.
Is the loan always Rs 1 crore?
No. Rs 1 crore is the top limit. Your loan depends on your project cost and your plan.
BankCreds analysis
The extension keeps a door open. It doesn't make loans easier to get. Banks still check your plan, your credit record and your ability to repay.
What it means for a first-time founder
Take a woman planning a Rs 40 lakh tailoring unit. She needs Rs 10 lakh of her own money. The EMI on the remaining loan is near Rs 51,000 a month. If her expected profit can't cover that comfortably, the plan is too big. Start smaller.
Don't over-read the headline. Rs 1 crore is the ceiling, not what most borrowers get. Many will qualify for far less. An extension also doesn't promise approval. Keep a cushion of at least three months of EMIs before you sign.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Indiablooms — originating report https://www.indiablooms.com/finance/want-a-business-loan-of-up-to-rs-1-crore-cabinet-extends-stand-up-india-scheme/details
- Press Information Bureau — Official government announcements on Cabinet decisions and the Stand-Up India scheme https://www.pib.gov.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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