Startups In India -In recent years, the growth of unicorns has been exponential. However, it isn’t easy to obtain the necessary financing when the company is still in its infancy. Additionally, the MSME sector in India has limited access to formal business credit. With the increasing number of small businesses in India, the Indian government has implemented government programs for new companies. These loan programs provide financing and further promote MSMEs and startups. These are some of India’s most notable government programs that provide funding for startups and startups.
The 7 Best Government Programs For Startups in India
Below we have provided the best Indian government business startup loan:
NABARD
Credit Guarantee Scheme (SGC)
Pradhan Mantri Mudra Yojana (PMMY)
Stand up a program for India
Coco Udyami Yojana
Facilitation of bank credit
Market Development Assistance (MDA)
1. NABARD
NABARD [National Bank of Agriculture and Rustic Development] is a development bank focused on the rural sector of India. It is one of the most important financial institutions in the country. It is accountable for evolving small industries, cottage industries, ander similar rural projects. The National Bank of Agriculture and Rural Development was established on July 12, 1982, with an initial capital of Rs 100 million. In addition to meeting the financial needs of the rural sector, NABARD also provides innovative and social projects through partnerships with various organizations for many innovative projects and programs related to water and soil conservation.
2. Credit Guarantee Scheme (Sgc) One Of The Startups In India
The government created the Credit Guarantee Scheme (CGS) to strengthen the lending system and facilitate financing for the MSME sector. New and existing MSMEs in manufacturing or service activities, excluding retail, agriculture, self-help groups (SHGs), training institutions, etc., can apply for the CGS. The lending institutions offering this program mainly include public and private banks, foreign banks, regional rural banks, SBI and associated banks. This MSME entrepreneur scheme offers several benefits, including term loans and working capital loan facilities of up to Rs 100 lakh per loan unit.
3. Pradhan Mantri Mudra Yojana (Pmmy)-Startups In India
The Micro Unit Development and Refinancing Agency (MUDRA) was launched in 2015 and aimed to provide credit for all activities in the manufacturing, trade and service sectors. PMMY offers loans in three categories: Shishu, Kishor and Tarun Loans. Everyone from the artisan to the shopkeeper to the machine operator can benefit from a mudra loan. The MUDRA loan program provides incentives through these interventions:
Shishu: Loans up to Rs 50,000
Kishor: Loans over Rs 50,000 and up to Rs 5,000,000
Tarun: Loans from Rs 5 lakhs and up to Rs 10,000,000
4. Stand Up India Program One of The Startups In India
The Stand-Up India program offers bank loans between Rs 10 Lakh and Rs 1 Cr to at least one SC or ST person and at least one female borrower per branch to expand their business. Companies active in the retail, manufacturing or service industries can apply for the stand-up program. For non-sole proprietorships, at least 51% of the shares must be held by an SC/ST or entrepreneur. The applicant must have good credit and not be in default with any bank or financial institution.
5. Coco Udyami Yojana
The Coir Udyami Yojana aims to support the creation of coconut units. Banks finance capital expenditures through a term loan to meet working capital needs. The Bank can also finance projects in compound loans made up of Capex and working capital. All MSME coconut processing startups registered under the Coconut Industry (Registration) Rules 2008 are eligible for this scheme. Banks are funding projects costing up to Rs 10 lakh per working capital round, which should not exceed 25% of the project’s total cost. This amount does not include the upper limit of Rs 10 lakh. The loan amount is 55% of the total project cost after deducting a 40% cash margin and 5% owner contribution from the beneficiaries.
6. Bank Credit Facilitation Program-Startups In India
The National Small Industries Corporation (NSIC) aims to meet the credit requirements of MSME entities. The NSIC program has partnered with several banks to provide loans to MSME units. So the loan repayment period of the program varies between 5 and 7 years; can be extended up to 11 years. The loan term depends on the startup’s income and is usually 5 to 7 years. But, in exceptional cases, it can be prolonged to up to 11 years.
7. Market Development Assistance Program (Mda).-Startups In India
The Department of Commerce is currently running a market development support program to encourage exporters (including MSME exporters) to access and develop foreign markets. And this program provides funds for the participation of manufacturing SMEs in international fairs/exhibitions at the booth of MIPYME India. Promotion of industry-specific market research by industry associations/Export Promotion Councils/Federation of Export Organizations of India.
Startup Business Loan Eligibility Criteria
To succeed in a startup loan for a new business, you must meet the following eligibility criteria:
- You must be an Indian citizen.
- It has to be autonomous.
- An individual age must be 25 to 65 years only
- You must have at least three years of experience in the company.
- Documents required for the startup loan
- You must provide the following identifications when applying for a government loan for a new business.
- Aadhaar card/passport/driving license
- pan card
- Bank statement for the last three months
- Any proof of trade, such as a trade certificate, tax returns for the previous year, profit and loss accounts for the last three years, etc.
How Do I Apply For A Business Startup Loan?
I am wondering how to get a government loan to start a business? We provide easy steps to apply for a first loan through Finserv MARKETS.
1 – Enter your personal information, including your name, mobile phone number, occupation, home address, etc.
2 – Choose a reasonable loan amount and payment term.
3 – Get instant approval in 3 minutes and get the loan amount within 24 hours.
- Aspects to consider when applying for a business startup loan
- Create a detailed business plan that you want to finance with the loan amount.
- Summarize the company’s potential growth and expected financial returns and,
- Provide a clear plan for raising funds to pay off the loan.
We have another way to get instant business financing by applying for a business loan from Finserv MARKETS and getting quick loans up to Rs 30 lakh with no collateral. But whether you are planning to start a business or want to upgrade your SME with the latest technology, so you can get a business loan tailored to your needs from Finserv MARKETS. And the online business loan application process is convenient with flexible loan repayment terms. So the business loan disbursement process takes less than 3 minutes, plus access to exclusive loan offers.