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

Rohit Sharma, a Scheduled Caste entrepreneur, plans a greenfield food processing unit in Nagpur and applies to a scheduled commercial bank under the Stand-Up India scheme. Which feature of the scheme applies to his loan?

Rohit's loan fits Stand-Up India, which supports bank loans from Rs 10 lakh to Rs 1 crore for first-time, greenfield enterprises owned by SC/ST or women entrepreneurs in manufacturing, services, allied agriculture or trading. It does not cover small Rs 50,000 loans or brownfield expansions.

  1. ALoan of Rs 10 lakh to Rs 1 crore for a first-time greenfield enterprise in manufacturing, services, allied agriculture activities or tradingCorrect
  2. BLoan of up to Rs 50,000 only, without any bank branch involvement
  3. CLoan above Rs 5 crore for expansion of an existing brownfield unit
  4. DLoan only for individual farmers buying agricultural land

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. Rohit's food processing unit is a greenfield manufacturing venture. The other options misstate the size or nature of eligible projects.

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