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?
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.
Source: Article