Union Budget 2026 may roll out Stand-Up India II with higher loan limits of up to ₹2 crore, aiming to boost women, SC and ST entrepreneurs and support the growth of small businesses across India.
Union Budget 2026: Stand-Up India II May Bring Bigger Loans and New Growth Opportunities for Entrepreneurs
The Union Budget 2026 is expected to put a strong spotlight on inclusive growth, with the government likely to roll out Stand-Up India II, an upgraded version of its flagship entrepreneurship scheme. The revamped plan is set to offer higher loan limits, making it easier for women, Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs to start and scale their businesses. By expanding access to credit and reducing financial barriers, Stand-Up India II aims to help small enterprises grow faster and play a bigger role in India’s economic story.
🚀 What’s New: Stand-Up India II Takes Shape
As India prepares for its Union Budget 2026 presentation on February 1, 2026, the government is gearing up to launch a refreshed version of the Stand-Up India scheme — popularly referred to as Stand-Up India II.
The big change? Loan limits are expected to double — from the existing cap of ₹1 crore to up to ₹2 crore. This is aimed at widening access to finance for small business owners, especially women, Scheduled Castes (SC), and Scheduled Tribes (ST) entrepreneurs.
📈 Why This Matters
Since its launch in 2016, the original Stand-Up India scheme has helped grow formal credit access for historically underserved founders, enabling them to kickstart greenfield ventures in manufacturing, services, trading, and allied sectors.
However, many early-stage businesses find themselves stuck once they outgrow smaller financing but aren’t yet big enough for mainstream corporate credit. Stand-Up India II aims to fill that financing gap by allowing more substantial loans without changing the core eligibility terms.
📊 What Changed So Far
Under the current scheme:
- Entrepreneurs receive bank loans from ₹10 lakh to ₹1 crore.
- The focus remains on SC, ST, and women borrowers, with at least one such borrower per scheduled commercial bank branch.
- Loans typically cover both term loan and working capital needs with a repayment period of up to 7 years.
Stand-Up India II is designed not to alter these basics but to expand capacity by increasing the maximum support businesses can get — helping them scale faster and more sustainably.
🧠How This Boosts Growth
Raising the loan cap offers several potential benefits:
- Enables firms to invest in new equipment and technology sooner.
- Helps small enterprises address gaps in working capital without turning to informal lenders.
- Encourages more first-generation entrepreneurs to dream bigger with support for larger, more ambitious projects.
At a recent finance summit, officials highlighted the push towards offering larger loans and expanding outreach, especially among SC and ST communities.
📌 Standing on Strong Ground
The Stand-Up India initiative has steadily widened its footprint since 2016. According to government and industry data:
- Total loan sanctions under the scheme climbed from around ₹14,431 crore in 2018 to well over ₹60,000 crore by early 2025.
- Accounts held by SC entrepreneurs and ST entrepreneurs have shown rapid growth in recent years.
- Participation by women entrepreneurs has been particularly strong — a key focus of the revamped plan.
With Stand-Up India II, policymakers aim to build on this momentum, offering higher credit access that matches the ambitions of a new generation of Indian business owners.
🧩 In a Nutshell
Stand-Up India II is shaping up to be one of the headline measures in the 2026 Union Budget, set to:
✔ Double the loan ceiling to ₹2 crore.
✔ Extend deeper credit support to under-served groups.
✔ Help small and first-generation enterprises grow without financing bottlenecks.
For millions of aspiring entrepreneurs across India, this move could be a game-changer — unlocking new opportunities and fuelling inclusive economic growth.