Previous Year Question
With reference to the ‘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
Correct Answer: C
Detailed Solution
The Government of India launched the Stand-Up India Scheme on 5 April 2016. Its purpose was to improve access to institutional credit for Scheduled Caste, Scheduled Tribe and women entrepreneurs.
Statement 1 is correct. The scheme envisaged that every Scheduled Commercial Bank branch would facilitate bank loans to at least:
One SC or ST entrepreneur; and
One woman entrepreneur.
The prescribed loan range was ₹10 lakh to ₹1 crore.
The loan was available only for a greenfield enterprise, meaning the beneficiary’s first venture in that sector. The enterprise could operate in manufacturing, services, trading or agriculture-allied activities.
Where the enterprise was established as a non-individual entity, an SC/ST or woman entrepreneur was required to hold at least 51% shareholding and controlling stake.
Statement 2 is correct. The scheme provided for a refinance window through the Small Industries Development Bank of India (SIDBI). SIDBI was also assigned responsibility for handholding support and operating the Stand-Up Mitra Portal.
Other important features included:
The composite loan could include both a term loan and working capital.
The loan could normally cover up to 75% of the project cost; this condition did not apply where the borrower’s contribution and assistance from other schemes together exceeded 25% of the project cost.
The beneficiary was required to contribute at least 10% of the project cost.
The maximum repayment period was seven years, with a maximum moratorium of 18 months.
A Credit Guarantee Fund for Stand-Up India was provided to support eligible loans.
Current status (2026)
The original Stand-Up India Scheme was extended by the Government up to 31 March 2025. Subsequently, the Union Budget 2025-26 announced a new scheme, based on lessons from Stand-Up India, for five lakh women and first-time SC/ST entrepreneurs, proposing term loans of up to ₹2 crore over the following five years.