MCQ

Stand-Up India MCQ - Practice Questions with Answers

Solve 5 Stand-Up India questions for RAS/RPSC preparation.

Practice questions

Q1Which one of the following statements about the financing structure of Stand-Up India is incorrect?

A The loan normally covers up to 85% of the project cost.

B Margin money may be met through convergence with eligible Central or State schemes.

C The borrower must contribute at least 10% of the project cost from own funds.

D A borrower receiving subsidy need not make any own contribution.

Explanation

Option D is incorrect. Convergence with an eligible Central or State scheme may help meet margin money, but it does not eliminate the borrower's contribution. The borrower must provide at least 10% of project cost from own funds in every case, including when a subsidy is available.

Q2Which one of the following correctly states the core lending objective of Stand-Up India?

A A grant of up to ₹10 lakh to every new micro-enterprise

B A composite bank loan of ₹10 lakh to ₹1 crore for at least one SC or ST borrower and one woman borrower per bank branch

C A crop loan of up to ₹1 crore to every farmer household

D An interest-free loan of exactly ₹1 crore only to existing manufacturing firms

Explanation

Stand-Up India facilitates a composite bank loan—covering term loan and working capital—of ₹10 lakh to ₹1 crore. The branch-level objective is at least one SC or ST borrower and at least one woman borrower for a greenfield enterprise. It is credit-linked assistance, not a grant.

Q3Consider the following statements about eligibility under Stand-Up India: 1. An eligible individual borrower must be above 18 years of age. 2. In a non-individual enterprise, at least 51% of the shareholding and controlling stake must be held by an SC, ST or woman entrepreneur. Which of the statements given above is/are correct?

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

Explanation

Both statements are correct. The individual entrepreneur must be above 18 years of age. Where the enterprise is a company, partnership or another non-individual entity, an SC, ST or woman entrepreneur must hold at least 51% of both the shareholding and the controlling stake.

Q4What is the maximum repayment period and the maximum moratorium permitted for a Stand-Up India loan?

A Up to 7 years, with a maximum moratorium of 18 months

B Up to 5 years, with a maximum moratorium of 12 months

C Up to 10 years, with a maximum moratorium of 24 months

D Up to 7 years, with no moratorium

Explanation

The loan is repayable over a period of up to 7 years, and that period may include a moratorium not exceeding 18 months. The two limits concern different dimensions: 7 years is the overall repayment ceiling, while 18 months is the maximum initial repayment holiday.

Q5Consider the following statements about Stand-Up India: 1. It supports a borrower's first venture in manufacturing, services, trading or activities allied to agriculture. 2. Working capital up to ₹10 lakh may be sanctioned as an overdraft with a RuPay debit card. 3. A borrower who is in default to a financial institution remains eligible if the proposed enterprise is greenfield. Which of the statements given above are correct?

A 1 only

B 1 and 2 only

C 2 and 3 only

D 1, 2 and 3

Explanation

Statements 1 and 2 are correct, but statement 3 is false. The eligible project must be the borrower's first venture in one of the listed sectors. Working capital up to ₹10 lakh may be provided through an overdraft with a RuPay debit card. Separately, the borrower must not be in default to a bank or financial institution.

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