The correct answer is Both 1 and 2.

Both statements about the Stand Up India Scheme are correct. Let us examine each statement carefully and understand why.

Background of the Scheme:
The Stand Up India Scheme was launched on 5th April 2016 by the Government of India under the initiative of Prime Minister Narendra Modi. It was introduced to foster inclusive economic growth by bringing traditionally underserved sections of society into the entrepreneurial mainstream. The scheme is overseen by the Department of Financial Services (DFS) under the Ministry of Finance.

Statement 1: Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
This statement is correct. The core objective of the Stand Up India Scheme is to facilitate bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch of Scheduled Commercial Banks. The intent is to help these groups set up greenfield enterprises — meaning new, first-time businesses — in manufacturing, services, agri-allied activities, or the trading sector. The rationale is that these communities have historically faced systemic barriers to accessing formal credit and capital, and this scheme directly addresses that gap by making institutional finance accessible to them for entrepreneurial ventures.

Statement 2: It provides for refinance through SIDBI.
This statement is also correct. The Stand Up India Scheme provides for a refinance window through the Small Industries Development Bank of India (SIDBI). SIDBI acts as the refinancing institution under this scheme, which means it provides funds to banks and lending institutions to enable them to extend loans to eligible SC/ST and women entrepreneurs at concessional or manageable rates. This refinance mechanism ensures that there is adequate liquidity available with lenders so that the scheme can be implemented at scale across the country. SIDBI's involvement is crucial because it strengthens the credit delivery ecosystem for small and micro enterprises.

Summary of Key Features of Stand Up India Scheme:

• Target beneficiaries: SC/ST individuals and women entrepreneurs.
• Loan range: ₹10 lakh to ₹1 crore (composite loan).
• Type of enterprise: Greenfield (new) enterprise.
• Refinance support: Available through SIDBI.
• Credit Guarantee: Backed by the Stand Up India Credit Guarantee Fund (CGFSIL).
• Portal: Standupmitra portal facilitates hand-holding support to borrowers.

Since both Statement 1 and Statement 2 are accurate descriptions of the Stand Up India Scheme — Statement 1 correctly identifies its purpose of promoting SC/ST and women entrepreneurship, and Statement 2 correctly identifies SIDBI's role in refinancing — the answer is confirmed as Both 1 and 2.