SSC Selection Post 2025 PYQ — Question 16

Correct Answer

Women and SC/ST entrepreneurs

Explanation

The Stand-Up India Scheme was launched by the Government of India on April 5, 2016, under the Ministry of Finance. Its primary objective is to promote entrepreneurship at the grassroots level by focusing specifically on economic empowerment and job creation among women and Scheduled Caste (SC) or Scheduled Tribe (ST) communities.

The scheme accomplishes this by mandating all branches of scheduled commercial banks to extend loans between ₹10 Lakh and ₹1 Crore. This financial assistance must be provided to at least one SC or ST borrower and at least one woman borrower per bank branch for setting up a new enterprise. This enterprise must be a greenfield project, meaning it is the first time the entrepreneur is establishing a venture in the manufacturing, services, agri-allied activities, or trading sector.

Key Points

In case of non-individual enterprises, at least 51% of the shareholding and controlling stake must be held by either an SC/ST or a woman entrepreneur.

The loan provided under this scheme is a composite loan, meaning it combines both working capital and a term loan to completely fulfill the initial setup requirements of the new business.

The repayment period for the loan extended under the Stand-Up India scheme is 7 years, which includes a maximum permissible moratorium period of 18 months to ease the initial financial burden on the entrepreneur.

Important Questions and Answers

Question: What is the minimum and maximum loan amount limit that can be sanctioned under the Stand-Up India Scheme?

Answer: The scheme provides bank loans ranging from a minimum of ₹10 Lakh to a maximum of ₹1 Crore.

Question: Can an existing business owner avail of a financial loan under the Stand-Up India Scheme to expand their working setup?

Answer: No, the scheme is strictly meant for greenfield projects, which means it applies only to new enterprises being set up for the very first time by the beneficiary