Q. Consider the following statements regarding Stand up India scheme:
1. Loans under the scheme are available only for brownfield projects.
2. Sectors for which loans can be given under the scheme include manufacturing, services and agri-allied activities.
Which of the above statements is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:
  • Statement 1 is incorrect: Loans under the scheme are available only for greenfield projects 
  • Statement 2 is correct 

About Stand Up India Scheme: 

  • The Stand Up India Scheme was launched in 2016 by the Department of Financial Services, Ministry of Finance. 
  • Objective: The scheme facilitates bank loans for setting up a new enterprise in manufacturing, services, agri-allied activities, or the trading sector by SC/ST/Women entrepreneurs. 
  • Bank Loan: It provides bank loans between Rs 10 lakh and up to 1 crore. 
  • The government does not allocate funds for loans under the Scheme. They are extended by Scheduled Commercial Banks(SCBs). 
  • Repayable of Loan: The loan is repayable in 7 years, with a maximum moratorium period of 18 months. 

Eligibility Condition for Loans under Stand Up India Scheme: 

  • Beneficiaries should be SC/ST and/or woman entrepreneurs above 18 years of age. 
  • Loans under the scheme are available only for greenfield projects. Greenfield signifies the first-time venture of the beneficiary in the manufacturing, services, agri-allied activities, or the trading sector. 
  • In the 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. 

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