Government Schemes for Startup Funding in India
The Indian government has launched a number of schemes to provide financial assistance to startups, including micro, small, and medium enterprises (MSMEs). These schemes offer a variety of funding options, such as loans, grants, and equity.
The following are some of the most popular government startup funding schemes in India:
Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme (SISFS) provides financial assistance of up to INR 20 lakhs to startups in the ideation and prototype development stage. The scheme is implemented by the Department of Science and Technology (DST) through its network of Technology Business Incubators (TBIs).
Startup India Loan Guarantee Scheme
The Startup India Loan Guarantee Scheme (SILGS) provides a guarantee of up to 80% on loans of up to INR 5 crore to startups. The scheme is implemented by the Small Industries Development Bank of India (SIDBI) through its network of partner banks.
Startup India Fund of Funds
The Startup India Fund of Funds (FoF) provides equity funding to startups through venture capital funds. The scheme has a corpus of INR 10,000 crore and is managed by SIDBI.
Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)
The Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) provides a guarantee of up to 85% on loans of up to INR 1 crore to MSMEs, including startups. The scheme is implemented by the SIDBI through its network of partner banks.
MUDRA Yojana
The Pradhan Mantri MUDRA Yojana (PMMY) provides loans of up to INR 10 lakh to MSMEs, including startups. The scheme is implemented by SIDBI through its network of banks and microfinance institutions.
Stand Up India Scheme
The Stand Up India Scheme provides loans of up to INR 1 crore to women entrepreneurs and Scheduled Castes (SCs) and Scheduled Tribes (STs) entrepreneurs. The scheme is implemented by SIDBI through its network of partner banks.
Biotechnology Ignition Grant (BIG)
The Biotechnology Ignition Grant (BIG) provides financial assistance of up to INR 50 lakh to startups in the biotechnology sector. The scheme is implemented by the Department of Biotechnology (DBT) through its network of Biotechnology Business Incubators (BBIs).
NewGen Innovation and Entrepreneurship Development Centre (NIEDC)
The NewGen Innovation and Entrepreneurship Development Centre (NIEDC) provides financial assistance, training, and mentorship to startups in the technology sector. The scheme is implemented by the Ministry of Electronics and Information Technology (MeitY) through its network of National Institute of Technology (NITs).
Women Entrepreneurship Platform (WEP)
The Women Entrepreneurship Platform (WEP) provides a range of support to women entrepreneurs, including financial assistance, training, and mentorship. The scheme is implemented by the Ministry of Women and Child Development (MWCD) through its network of Women Development Corporations (WDCs).
How to Apply for Government Startup Funding Schemes
The application process for government startup funding schemes varies depending on the scheme. However, most schemes have a common application form that can be downloaded from the website of the implementing agency.
Once you have completed the application form, you need to submit it to the implementing agency along with supporting documents such as a business plan, financial statements, and PAN card.
The implementing agency will review your application and assess your eligibility for the scheme. If your application is approved, you will receive the funding in the form of a loan, grant, or equity.
Eligibility Criteria for Government Startup Funding Schemes
The eligibility criteria for government startup funding schemes vary depending on the scheme. However, most schemes have the following basic eligibility criteria:
- The startup must be registered in India.
- The startup must be less than five years old.
- The startup must be innovative and have the potential to create jobs.
- The startup must have a viable business plan.
Conclusion
The government startup funding schemes in India offer a variety of funding options to startups, including MSMEs. These schemes can help startups to overcome the financial challenges they face and to achieve their growth goals.
