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CS Professional · Banking and Insurance - Laws and Practice · Various Government Schemes

Anita, a woman entrepreneur in Pune, wants to start a manufacturing unit and approaches a scheduled commercial bank under the Stand-Up India scheme. Which feature of the scheme fits her case?

Anita fits Stand-Up India, which facilitates bank loans from Rs 10 lakh to Rs 1 crore for greenfield enterprises set up by SC/ST or women borrowers. It covers manufacturing, services, trading and agri-allied activities. The loans come from scheduled commercial banks, not directly from RBI.

  1. ABank loans between Rs 10 lakh and Rs 1 crore for greenfield enterprises set up by SC/ST or women borrowersCorrect
  2. BInterest-free loans from RBI directly to any woman applicant
  3. CLoans only for existing businesses wanting to expand, up to Rs 5 lakh
  4. DLoans restricted to agricultural activities in rural areas

Explanation

Stand-Up India facilitates bank loans of Rs 10 lakh to Rs 1 crore for at least one SC/ST borrower and one woman borrower per bank branch, for greenfield enterprises in manufacturing, services, trading or agri-allied activities. Anita's new unit qualifies. The scheme is not an RBI direct loan, is not limited to existing businesses, and is not restricted to agriculture.

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