A startup is a firm established by one or more entrepreneurs with the vision of creating a unique product or service. Various startups in finance, education, pharma, e-commerce, and related fields have sprung up in recent years and contributed tremendously to the Indian economy by providing millions of jobs to educated youth across the country. Therefore business loan in India are granted to startups easily.
Recognizing the crucial importance of these startups in boosting the country’s economy, the Government of India has come up with business loan in India to support entrepreneurship.
Let’s take a look at the top startup support schemes introduced by the Government in India.
- Start-up India
Launched in 2016, the scheme falls under the purview of the Department of Industrial Policy and Promotion. This loan aims to support Indian entrepreneurs in creating 10 lakh mobile app startups. The program offers microfinance loans at low interest to emerging entrepreneurs from low socioeconomic strata.
- ATAL Innovation Mission
The government scheme was created to promote an innovative culture and develop the spirit of entrepreneurship across India. The scheme aims to create cooperation between state, central, and local innovation schemes and implement entrepreneurship spirit from schools to corporates by developing world-class Atal Incubators (AICs).
- e-Biz Portal
Founded in 2013, this is the first online platform that allows government-to-business (G2B) communication. This portal’s primary purpose is to create an entrepreneurship-friendly atmosphere in the country.
- Support for International Patent Protection in Electronics & Information Technology
The SIP-EIT scheme was launched by the Ministry of Electronics and Information Technology to provide financial funding for MSMEs and Technology Startups to encourage innovation, acknowledge international patent rights, and optimize the sector’s growth in the county.
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- Credit Guarantee Fund Trust for Micro and Small Enterprises
The government established CGTMSE for providing collateral-free business loans to MSME and startups. The scheme allows business units to get collateral-free loans at a low-interest rate to promote new businesses and relaunch existing ones. The loan is provided mainly for manufacturing companies, either as working capital or term loan.
- NewGen Innovation and Entrepreneurship Development Centre
The NewGen IEDC scheme has been launched by the National Science and Technology Entrepreneurship Development Board. The scheme aims to instill a spirit of creativity and entrepreneurship among the youth in India through various methods like counseling, coaching, and assistance. There is also provision for supporting and encouraging entrepreneurship.
- Dairy Processing and Infrastructure Development Fund
The loan component consists of 80%, with the borrower to pay the remaining 20% payment. Interest is charged at 6.5 % p.a. and loan tenure is decided based on the amount of money borrowed. The respective state government guarantees the loan repayment, and in case of borrower default, the state government steps in to contribute the defaulted portion.
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These key initiatives by the government aim to increase the number of individuals participating in entrepreneurship in India and help boost the growth of the Indian startup ecosystem. If you’re planning to establish a startup, keep in mind that the government provides various business loan in India to help in the growth of your establishment. Oxyzo also offers working capital credit to businesses for managing the working capital requirements and procure raw materials for manufacturing. Avail the working capital credit at a low-interest rate with minimal documentation.