Q. With reference to ‘Stand Up India Scheme’, which of the following statements is/are correct?

  1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
  2. It provides for refinance through SIDBI,

Select the correct answer using the code given below.

  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2

Answer: (c) Both 1 and 2

Stand-Up India Scheme:
  • Stand up India Scheme was launched by Ministry of Finance on 5th April 2016 to promote entrepreneurship at grassroot level focusing on economic empowerment and job creation.
  • This scheme has been extended up to the year 2025.
  • Purpose:
    • Promote entrepreneurship amongst women, Scheduled Caste (SC) and Scheduled Tribe (ST) category.
    • Provide loans for greenfield enterprises in manufacturing, services or the trading sector and activities allied to agriculture.
    • Facilitate bank loans between Rs.10 lakh and Rs.100 lakh to at least one SC/ST borrower and at least one-woman borrower per bank branch of Scheduled Commercial Banks.
  • Facilitates Bank Loans:
    • The scheme aims to encourage all bank branches in extending loans. The desiring applicants can apply under the scheme:
      • Directly at the branch or,
      • Through Stand-Up India Portal (www.standupmitra.in) or,
      • Through the Lead District Manager (LDM).
  • Eligibility for a Loan:
    • SC/ST and/or women entrepreneurs, above 18 years of age.
    • Loans under the scheme are available for only green field projects. Green field signifies, in this context, the first-time venture of the beneficiary in manufacturing, services or the trading sector and activities allied to agriculture.
    • In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by either SC/ST and/or Women Entrepreneur.
    • Borrowers should not be in default to any bank/financial institution.
    • The Scheme envisages ‘up to 15%’ margin money which can be provided in convergence with eligible Central/State schemes.
      • In any case, the borrower shall be required to bring in a minimum of 10 % of the project cost as own contribution.