Cabinet approves extending credit guarantee fund for micro units, and Stand up India scheme; Aqua Line metro rail corridors extension gets nod
Economic Times - Policy · Published 11 November 2026 · Last updated
The Union Cabinet has approved the five-year extension of the Credit Guarantee Fund for Micro Units and Stand-Up India schemes until 2031, alongside clearing an 8.5-kilometer extension for the Noida-Greater Noida Aqua Line Metro corridor.
Key points
- The Union Cabinet approved extending the Credit Guarantee Fund for Micro Units and the Stand-Up India scheme for five years until March 2031.
- Union Information and Broadcasting Minister Ashwini Vaishnaw announced a Rs 5,000 crore corpus for the micro units fund and a Rs 4,111 crore credit guarantee corpus for Stand-Up India.
- The micro units fund extension is expected to facilitate Rs 12.6 lakh crore in loans under the Pradhan Mantri Mudra Yojana over the next five years.
- Eligible credit facilities for the micro units fund include Mudra loans up to Rs 20 lakh, overdrafts up to Rs 10,000 under Pradhan Mantri Jan Dhan Yojana accounts, and specified self-help group loans between Rs 10 lakh and Rs 20 lakh.
- The annual guarantee fee for the micro units fund has been reduced from 1% to 0.75%, while self-help groups will continue paying 0.25% in the first year and 0.50% in subsequent years.
- The continuation of Stand-Up India targets at least 2.5 lakh additional women, Scheduled Caste, and Scheduled Tribe entrepreneurs over five years.
- Under Stand-Up India, eligible borrowers can obtain loans above Rs 10 lakh and up to Rs 1 crore to establish new enterprises, with credit guarantee coverage set at 85% of the loan amount and a standard fee of 0.50%.
- The Cabinet approved an 8.5 kilometre extension of the Aqua Line Metro Rail Corridor from Noida Sector-51 to Greater Noida Sector-04, adding 5 elevated stations.
- Upon operationalization of the new metro corridor, the combined Noida and Greater Noida active metro network will reach 71.878 km and provide an interchange at Noida Sector-61 Blue Line.
Background
- The Stand-Up India scheme was originally launched in April 2016 to promote entrepreneurship among women and members of the Scheduled Castes and Scheduled Tribes.
- Since its inception in April 2016, the Stand-Up India scheme has facilitated loans to more than 2.75 lakh entrepreneurs from targeted social groups.
- The Credit Guarantee Fund for Micro Units has previously functioned to protect lending institutions against default risks through the National Credit Guarantee Trustee Company Limited.
Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: Economic Times - Policy