The Union Ministry of Commerce and Industry launched the Startup India initiative in early 2016. This scheme has been providing financial support and incentives to startups, which have resulted in India becoming the third-largest startup ecosystem in the world.
A major contributor to the growth of India’s startups has been the loan schemes provided by the Indian Government.
Here are some of the common criteria to apply for government-aided startup business loans:
The company should not have completed 10 years from the date of its incorporation
The company must be a private limited company, partnership firm, or limited liability partnership
The company’s turnover must not exceed ₹100 Crores since its incorporation
It must not be formed by splitting another entity already in existence
To apply for a startup business loan under a government scheme, you need to submit the following documents:
PAN card, Aadhaar card, Voter’s ID card, passport
Ration card, rental agreement, utility bills
Business address proof
Profit and Loss Account and balance sheet copies of the last 2 years
Income Tax Returns and Sales Tax Returns
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.
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.
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.
Only the startups involved in manufacturing, services, and trading sectors can avail of benefits under the Credit Guarantee Scheme.
As per the guidelines, the beneficiary of the Coir Udyami Scheme needs to contribute 5% of the project cost.
You can avail of a mortarium period extending up to 18 months under the Stand-Up India Scheme.