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. (UPSC Prelims 2016)
Answer: Both 1 and 2
Notes: The correct answer is [C] Both 1 and 2. The Stand Up India Scheme was launched in 2016 to support entrepreneurship at the grassroots level, specifically focusing on underserved sectors.

• Statement 1 (Correct): The primary objective of the scheme is to facilitate bank loans between 10 lakh and 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. These enterprises can be in the manufacturing, services, agri-allied activities, or the trading sector.
• Statement 2 (Correct): The scheme is implemented through all Scheduled Commercial Banks. To support the lending process, the Small Industries Development Bank of India (SIDBI) provides a refinance window. Additionally, the National Credit Guarantee Trustee Company (NCGTC) provides a credit guarantee mechanism to reduce the risk for banks.
• Eligibility and Conditions: Borrowers must be above 18 years of age.
  • The enterprise must be a greenfield project (the first-time venture of the beneficiary).
  • In the 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.

Historically, this scheme complements the MUDRA Yojana, which targets smaller loans (up to 10 lakh), by filling the gap for larger credit requirements for marginalized entrepreneurs.