With the rise in the number of small businesses across India, the Government of India decided to roll out government schemes for startups. These government loan schemes for new businesses provide financing and further promote MSMEs and startups.
Here are some of India's most notable government schemes that offer finance for startups and new businesses.
The revenue generated from MSME sectors contributes to about 30% of the overall GDP of India. In addition to this, it serves as the largest job creator for the citizens of India. Hence, to financially strengthen this sector, there are government schemes for starting new business available.
These government funding schemes for startups enable a constant inflow of cash that can escalate the growth of these businesses. Entrepreneurs can use this money to fund existing activities, expand their ventures, and monetise new ideas to generate more profit.
To avail of government funding schemes for startups, you must meet the following eligibility criteria:
Must be an Indian citizen
Must be self-employed
Age must be between 25-65 years
Must have a minimum business vintage of 3 years
You will have to furnish the following documents when applying for a loan under startup schemes by the government:
Aadhaar card/passport/driving license
PAN card
Any business proof like a certificate of business existence, tax filings from the previous financial year, profit and loss statements from the last 3 years, etc.
Wondering how to get a loan under a startup government scheme? Here, we have provided simple steps to apply for a loan on Bajaj Markets.
Fill in your personal details, including your name, mobile number, occupation, residential address, etc.
Choose a suitable loan amount and repayment tenure.
Get instant approval in 2 minutes and the loan amount without delay.
Stand Up India Scheme grants access to bank loans to scheduled caste (SC) or Scheduled Tribe borrowers, at least one, and at least one woman per bank branch. The sanction offered is between ₹10 Lakhs and ₹1 Crore. This enterprise may be in greenfield projects, manufacturing, services, or the trading sector.
As a business owner, you can avail yourself of a variety of government schemes for startups and government schemes for starting new businesses. These include the MSME government business loan scheme, the MUDRA business loan, the Credit guarantee fund government business loan scheme, etc.
Entrepreneurs can now avail themselves of a distinct type of funding for their startup from the banks. Many banks and financial institutions offer loan schemes that are specifically designed to fund startups and their special needs.
A flagship initiative, Startup India’s mission is to build a strong entrepreneurial ecosystem. This intent is to be an initiative that drives economic growth, prosperity of startups, sustainability, and large-scale employment across sectors.
It is essential to know about government schemes for startup business loans to meet the emergency fund requirements of your venture. With adequate knowledge, you can accurately apply for credit, thereby minimising the chances of loan rejection.
You can get a maximum of ₹1 Crore under the Credit Guarantee Scheme (CGS) for business loans.
Yes, a credit score matters for a government scheme business loan as it reflects your credit history. So, if you have a good score, there are high chances of qualifying for government schemes for starting new businesses at affordable rates.
To apply for the Startup India scheme, a company needs to be a partnership or private limited firm with a minimum business vintage of 5 years. Moreover, the company should not have an annual turnover of more than ₹25 Crores.
NITI Aayog’s Atal Innovation Mission (AIM) provides financial assistance of up to ₹10 Crores to chosen funds for a period of five years. You can also search for other govt. loan scheme for new business establishments to secure the finances you need.