With reference to ‘Stand Up India Scheme’ which of the following statements is/are correct?
- Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
- 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
Explanation
Statement 1 is correct
- It is a scheme (launched in 2016) by the Ministry of Finance for financing SC/ST and/or Women Entrepreneurs by facilitating bank loans for setting up a greenfield project enterprise in the manufacturing, services, trading sector and activities allied to agriculture.
- Objective: to facilitate bank loans between Rs. 10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
- In case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or a woman entrepreneur.
Statement 2 is correct
- The online portal Standupmitra, developed by Small Industries Development Bank of India (SIDBI) for the Stand-Up India Scheme, provides guidance to prospective entrepreneurs.
- SIDBI has formulated a Special Refinance Scheme for banks to extend assistance under Stand-Up India.
