Top 5 Financial Schemes for startups by the Indian Government
Planning to start a business and looking for funds from Government of India initiatives? In this article we bring to you the top 5 Government initiatives that can help you get capital for your start up.
In a bid to encourage entrepreneurship, the government has offered various initiatives for start-ups. Going forward, such schemes will help to improve business skills, bridge funding requirement, and impart training to the youth. However, experts feel a lot is still to be done in this field to ensure that the entrepreneurship is taken on a big scale and eventually it becomes a trademark for India. Here, we list the schemes offered by the government of India that work towards addressing the huge skill gaps.Goa Startup Policy
Managed by- the scheme is managed by Department of IT(Goa)
Details of the scheme- Union Minister of Commerce, Suresh Prabhu has rolled his sleeves to make Goa as one of the preferred startup destinations in Asia. Hence, it has started with a scheme wherein various financial incentives will be granted to the start-ups who promises to be a part of Goa's ecosystem.
Financial incentives- the start-ups will get massive subsidies and incentives to start their operation in Goa, which includes a one- time grant of $15,373 or Rs 10 lakh. Apart from that, the scheme will provide seed capital to the ventures (who promise to manufacture minimum viable product), and will fund working capital requirements of those startups who have acquired a customer base, research and development fund, skill development fund to the institutes who offer courses to enhance the technical skills of the students.Venture Capital Fund Scheme
Managed by-Government of India
In order to promote entrepreneurship among the socially backward society, the central government has started this scheme. This scheme will help the SC entrepreneurs to garner wealth, develop jobs and at the same time promote profitable businesses.
Financial Assistance up to 5 crores- Indian Government is willing to fund 75% of the project and rest 25% needs to be funded by the promoters.
Financial incentives above 5 crores- Investment is funded up to 50% of the project and at least 25% has to be funded by the banks and rest 25% needed to be funded by promoters.
Under this scheme, financial assistance up to 15 crores is granted to SC entrepreneur's up to 6 months.Credit Guarantee Scheme
Managed by- The scheme is managed by Credit Guarantee Fund Trust for MSME
Details of the scheme- The scheme has been launched by the Indian government to improve the credit delivery and to source the funding requirement to the MSE sector. Leading banking institutions like regional rural banks, SBI and its associate banks, private and foreign banks can grant the loan.
Fiscal Incentives- The banks or financial institution can fund the working capital requirements up to Rs 100 lakhs per borrowing unit. The guarantee cover is offered up to 75% of the credit facility up to INR 50 lakhs and a uniform guarantee of 50% is provided for the whole amount if the credit exposure extends beyond 50 lakhs and till 100 lakhs.Stree Shakti
Managed by-State Bank of India
Details of the scheme- The business culture of India is dominated by the males with a very little leg space for the woman entrepreneurs, but with the help of this scheme, the woman can excel as an entrepreneur.
Fiscal Incentives- Loans up to Rs 50 lakhs are sanctioned under this scheme and if the loan exceeds 2 lakhs, a concession of 0.50% is allowed. Apart from that, you must have at least 50% association in the business you want the loan for.Start Up India scheme
Managed by- the Government of India has partnered with HRD ministry and Department of Science and Technology
Details of the scheme- Startup India scheme aims at promoting the entrepreneurship across the country. Various banking organization have collaborated together in order to boost the Indian startups in a process to create more jobs. The government has further launched a mobile app wherein the companies will register themselves for the financial incentives. There will be a single window clearance for approvals, registration and other legal formalities.
Fiscal incentives- Startups in the manufacturing are relaxed from the prior experience criteria but there is an exemption in the quality standards or technical parameters as mentioned by the government. The government will offer Rs 1,000 crore for the new enterprise and 500 crores credit guarantee scheme along with easier exit and entry norms. The startup can claim 80% rebate in the patent cost.
