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

Ritu, a woman entrepreneur in Pune, wants to set up a new greenfield food-processing unit in the manufacturing sector. She seeks a bank loan of Rs 60 lakh under the Stand-Up India scheme. Which statement best reflects the scheme's design?

Ritu's case fits Stand-Up India, which supports SC/ST and women entrepreneurs in setting up greenfield enterprises through bank loans between Rs 10 lakh and Rs 1 crore. Her Rs 60 lakh new manufacturing unit lies within that range, so she is eligible in principle.

  1. AThe scheme is meant for SC/ST and women borrowers setting up greenfield enterprises, with loans between Rs 10 lakh and Rs 1 croreCorrect
  2. BThe scheme is meant only for existing businesses seeking expansion, with loans up to Rs 10 lakh
  3. CThe scheme is open to all categories of borrowers and funds only brownfield projects above Rs 1 crore
  4. DThe scheme provides only an interest subvention on loans from NBFCs, not bank loans

Explanation

Stand-Up India facilitates bank loans between Rs 10 lakh and Rs 1 crore to at least one SC/ST borrower and one woman borrower per bank branch for greenfield enterprises in manufacturing, services, agri-allied activities or trading. Ritu's Rs 60 lakh greenfield manufacturing project fits. The expansion-only option is wrong because the scheme targets new ventures.

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