Startup is an Entrepreneurial Venture or a new Business in the form of a Company, a Partnership, Proprietorship, etc. generally newly created with innovative concepts and too high growth potential. The Startups are growing in our country day by day, there are so many Indian startups who hits big even the Government of India also takes many steps to promote the startup culture. So let’s look at some of the schemes started by the Government of India.
1. Pradhan Mantri Mudra Yojna (PMMY)
Scheme of Government of India to fund the micro and small enterprises by bringing such enterprises to the financial system and affordable credit to them. It allows a small borrower to borrow funds from all Public Sector Banks, Regional Rural Banks, and Cooperative Banks, Private Sector Banks, Micro Finance Institutions (MFI), and Non- Banking Finance Companies (NBFC) for loans upto Rs 10 lakhs In this scheme no collateral is required to avail the loan. It offers 3 types of credit, Shishu covering loan up to 50,000, Kishor covering loan between 50,000 and 5 lakh, and Tarun covering loan between 5 lakh and 10 lakh.
2. Stand Up India Scheme
The Stand-up India scheme launched in 2016 by the Government of India under the Department of Financial Services (DFS), Ministry of Finance, with targets to promoting entrepreneurship among women and scheduled castes (SCs) and scheduled tribes (STs).Stand-Up India Scheme offers bank loans between Rs.10 lakh and Rs.1 Crore to at least one SC or ST and at least one woman entrepreneur borrower. The enterprise may be involved in manufacturing, services or the trading sector.The loan is provided as working capital with are payment period of 7 years maximum.
3. Credit Link Capital Subsidy Scheme
Under this scheme, new technology is provided to the business owners to replace their obsolete technology. To get this assistance the business owner can reach their banks for subsidies. This scheme offers a 15% capital subsidy to small scale industries. The subsidy is available on loans of up to Rs.1 crore availed for upgrading and modernizing of plant and machinery.
4. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
This scheme was set up by the Government of India to provide business loans to micro and small industries, without any collateral, which means zero collateral. The scheme provides support to new and upcoming startups that can avail loans at highly subsidized interest rates without giving any security. Working along with Small Industries Development Bank of India (SIDBI), this scheme allows a maximum loan amount up to Rs.100 lakhs, for boosting new enterprises as well as existing ones. Initially, for manufacturing units, this loan can be availed in the form of term loans or working capital.
5. Incubation Scheme
Under this government will finance part of the project cost to help the innovators with the implementation of their new ideas, design or products. Continuously adapt and maintain the upgraded and latest technologies in manufacturing and knowledge-based innovative MSME startups. Support the MSMEs in expanding their businesses in designing, applying suitable strategy and execution of the plan. It encourages and promotes the creativity of individuals.