If you’re thinking of becoming an entrepreneur in India, this is probably the best time to turn your dream into reality. We already have one of the fastest-growing startup ecosystems in the world. With several government initiatives and schemes to benefit budding entrepreneurs, you have everything you need to kick-start your entrepreneurship journey in India.
Here are some of the most noteworthy Government schemes for startups.
Top 5 Government schemes for startups
1. Credit Guarantee Scheme(CGTMSE)
This credit Guarantee scheme was launched to help new entrepreneurs get financial assistance from financial institutions without any collateral. It allows micro and small Industries to take business loans to fulfill their working capital requirements.
Other benefits include low-interest rates and zero security. In this scheme, businesses can avail loans of up to 1 crore. It provides a repayment guarantee of 75% to 85% for loans of up to 50 lakh. `For loans from 50 lakh to 100 lakh, the repayment guarantee is up to 50%. Loans up to INR 5 lakh comes with a guarantee cover of 85%.
CGTMSE works with Small Industries Bank of India (SIDBI) to facilitates working capital requirements to micro and small businesses. This scheme applies to all small and medium enterprises.
2. Stand up India
Designed to give a push to women as well as SC and ST entrepreneurs, Standup India facilitates loans of up to 100 lakh (10 lakh minimum) to budding entrepreneurs. In standup India schemes, all banks must provide loans to at least 1 SC/ST candidate and 1 woman entrepreneur. Non-individual businesses can also apply for this scheme, provided female members hold a 51% stake in the company.
3. Infrastructure Development
Launched by NSIC (National Small Industries Corporation), this Infrastructure Development scheme is created to help startup companies to build their offices and set up other infrastructure.
However, companies need to follow strict guidelines to satisfy the eligibility criteria. For instance, companies must meet all the requirements to be considered as a Startup as per the Government’s rules.
If you meet all the requirements, you’re eligible to apply for this scheme regardless of your industry. You’re must not be registered with STPI to apply for this program. Under this scheme, startup companies can get space between 467 square feet and 8,657 square feet to set up their businesses.
4. Micro Units Development and Refinance Agency (MUDRA)
Launched by the Indian government with much fanfare, MUDRA is one of the earliest startup assistance programs. There are three levels or modules of MUDRA loans, namely – Shishu loans (up to 50,000), Kishore loans (from 50,000 to 5 lakh), and lastly, Tarun loans (from 5 lakh to 10 lakh). Eligible individuals can get MUDRA loans without any collateral.
5. Scheme for Technology Upgradation
Credit Linked Capital Subsidy is a scheme launched to help SMEs, Agri-startups, and manufacturers to upgrade their equipment and technology. If you have recently updated your equipment and machines, and you are registered with SDI (State Directorate of Industries), you can apply for this technology up-gradation scheme. This scheme is applicable for industries including Manufacturing, SME’s, Small scale industry, and coir or village industry, among others.
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