India, Nov. 12 -- The Union Cabinet on Wednesday approved the continuation of two credit guarantee schemes for five years, allocating Rs.4,111 crore for the Stand-Up India fund and Rs.5,000 crore for the Micro Units fund under the Pradhan Mantri Mudra Yojana (PMMY), aimed at expanding collateral-free credit to women, SC/ST and micro entrepreneurs, according to an official release.

According to the government, the Credit Guarantee Fund for Stand-Up India will guarantee loans above Rs.10 lakh and up to Rs.1 crore for women and SC/ST entrepreneurs setting up greenfield enterprises.

The scheme targets an average of two loans per bank branch-one to a woman entrepreneur and one to an SC/ST entrepreneur. The guarantee fee will be 0.50% annuall...