Government Schemes For Startups: Starting a business is no easy feat to achieve. But there is one challenge that often makes it seem close to impossible. This is the challenge of raising funds. A lot of business ideas have died before even starting because of this funding problem. The typical problem is that you can’t make money if you don’t already have money. But this is not the case today.
Today our government has launched several schemes helping entrepreneurs with funding. Some of these schemes are:Â
Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme (SISFS), led by DPIIT, serves as a supportive platform for startups, providing essential financial backing to bring their visions to life. It’s essentially a stepping stone, helping them gain the traction needed to secure investments or loans.
With its open-door policy year-round, industry-agnostic approach, nationwide accessibility, and the flexibility for startups to explore multiple incubators simultaneously, it’s like a beacon of opportunity in the startup ecosystem. SISFS provides grants of up to Rs. 50 lakhs to validate your product or service in the market and up to Rs. 20 lakhs for proof-of-concept development.
Credit Guarantee Scheme for startup
The Credit Guarantee Scheme for Startups (CGSS) is like a helping hand for budding entrepreneurs, providing them with the assurance they need to secure loans from banks, NBFCs, and financial institutions. It’s a lifeline for startups, offering them the chance to access much-needed funds without worrying about putting up collateral.
With CGSS, startups can breathe a sigh of relief knowing that their exposure is capped, and they have options like transaction-based and umbrella-based covers to choose from. This scheme isn’t just about financial support; it’s about empowering entrepreneurs to pursue their dreams despite the challenges brought on by the pandemic and tightening liquidity. It’s a reminder that even in tough times, there’s support available to help startups thrive and make their mark in the world. The government offers a guarantee cover of up to 75% of the sanctioned loan amount.
Startup India scheme
Startup India is a flagship initiative of the Government of India launched in 2016. It aims to foster entrepreneurship and promote innovation by providing various benefits and support to startups. The scheme offers incentives such as tax exemptions, funding opportunities, simplified regulations, and easier access to financing and mentorship.
The Startup India scheme includes provisions to empower women entrepreneurs from marginalized communities such as Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC). Under this scheme, eligible women entrepreneurs can access loans of up to Rs. 1 crore for setting up greenfield enterprises.
Pradham Mantri Mudra Yojana
The Pradhan Mantri Mudra Loan Scheme, launched in 2015 by Prime Minister Narendra Modi, aims to support small business owners in India by providing financial assistance of up to approximately Rs 10 lakh. Under this initiative, applicants are exempted from paying processing fees and benefit from an extended repayment period of five years. Additionally, citizens can conveniently apply for Mudra loans through the issuance of a Mudra card.
Atal Innovation Mission
The Atal Innovation Mission (AIM) is an initiative by the Government of India to promote innovation and entrepreneurship across the country. It aims to create a culture of innovation and entrepreneurship, foster innovation-driven enterprises, and support innovation through various programs, incubators, and research initiatives. AIM also encourages the establishment of Atal Tinkering Labs in schools to foster curiosity, creativity, and problem-solving skills among students from a young age.
The Indian government has been a strong ally for entrepreneurs. It’s not just about paperwork and policies; it’s about offering real support. From tax breaks to simpler rules, funding avenues, and mentorship, they’ve got our backs. And it’s heartening to see them reaching out to women entrepreneurs from diverse backgrounds, providing the resources they need to bring their ideas to life. These efforts aren’t just about boosting numbers; they’re about empowering dreams and driving positive change in our communities.
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