That one idea in your head, trying hard to kick out but the financial hurdle is troubling you? Hold on and relax, here are a few Government Schemes for Startups that will get your idea to shine bright. The Government of India and the ministry of MSME have launched several unique government schemes and programs designed to empower startups and MSMEs in India. We have covered the top Government schemes for startups and MSMEs, which will get start-ups to trigger growth.
Here are 6 top Government Schemes for startups!
- Pradhan Mantri Mudra Yojna
The Prime Minister of India has launched Pradhan Mantri Mudra Yojna. Wherein, Micro Units Development and Refinance Agency Bank or MUDRA Banks provide loans at low rates to micro-finance institutions and non-banking financial institutions, who in turn provide low-interest loans to start-ups and MSMEs.
This start-up scheme has 3 categories
– Shishu, which is for freshers or new businesses. It provides loans up to INR 50,000.
– Kishor is for mid-aged businesses and can provide a loan of up to INR 5,00,000.
– Tarun provides a loan of up to INR 10,00,000 to the existing and experienced businesses.
- Startup India Seed Fund Scheme (SISFS)
Financial support to Startups for prototype development, product trails, market-entry, and commercialization is provided under Start-up India Seed Fund Scheme (SISFS). Companies that are not older than 2 years from the date of incorporation are eligible for SISFS. The loan amounting up to INR 70,000 is a grant to the company/business under this government schemes for startups.
- Credit Guarantee Trust fund for micro and Small Enterprises (CGTMSE)
Under this scheme, the ongoing businesses or the potential startups falling under MSME are provided with a collateral-free loan of up to INR 1 crore. The trust named Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE) grants the loan sponsored by the Ministry of MSME and Small Industries Development Bank of India (SIDBI).
- Financial Support to MSMEs in ZED Certificate Schemes
ZED or zero effect or zero-defect program is to motivate the manufacturers to produce quality products without any defect. The mission is to provide manufacturers with the support to manufacture optimum quality goods with the use of all required technology. ZED Certificate Schemes will provide financial and technological support to the business.
- Credit Linked Capital Subsidy for Technological Upgradation
The Government provides loans to the MSMEs to upgrade their technology. A dynamic business environment asks for continuous adaptation to new technology to survive and sustain itself in the market. Under this scheme, 15% of subsidy for the investment up to INR 1 crore for the up-gradation of the technology within the working business. CLCSS has more than 7500 products/services covered.
- Stand-Up India for Financing SC/ST and Women entrepreneurs
Stand Up India promotes scheduled caste and scheduled tribe entrepreneurs and women entrepreneurs by helping them granting loans from INR 10 lakhs to INR 1 crores. The GreenField projects like manufacturing services and trading sector are covered under the Stand-Up India scheme.
This are the best Government Schemes for StartUps that will help you to grow your startup.
Triggering enough to apply for it and start your own dream business? We have you covered with the right startup consultation in Government schemes for Startups tailored just for you!