What is your first thought when you hear “Startup”?
A million-dollar idea plus Competent founders and a trustworthy team?…
It sometimes takes more than this to build and scale a startup from scratch.
But, don’t be discouraged, various government schemes for startups might help you in your grueling journey of building a successful business.
As per the government of India, a startup is an entity that is registered in India and has been in existence for less than five years with an annual turnover of less than INR 25 crore.
Also, it must be working towards innovation, development, deployment, or commercialization of new products or services driven by technology or intellectual property.
Now that you know how the GOI defines a startup, here are the top 7 government schemes for startups.
1. Atal Incubation Centre (AIC)
Atal Incubation Centre is a startup funding scheme that started in the year 2016. Initiated by the NITI Aayog, this government scheme aims to support entrepreneurs, by covering their capital and operational expenditures.
The approved startups can avail up to Rs. 10 crore over a five-year term.
AIC allows researchers, students, and startup owners to apply for the scheme across different areas of business, and not limited to companies having Public-private partnerships, Public organizations, or completely private organizations.
For the exclusive use of the AIC, you would need to build a ready-to-use space of around 10,000 square feet.
Visit the Attal Incubation Center and learn all the details of this scheme.
2. PSB59
PSB59 loan scheme was introduced in the year 2018 by GOI to help startups and MSMEs with financial assistance of loans up to 5cr.
PSB59 loan is a quick government scheme for MSME and startup financing, where you can get digital approvals for loans within 59 minutes. After your application is accepted, the loan is disbursed within 1-2 weeks. A majority of the PSBs (Public Sector Banks) are a part of this scheme.
Visit PSB59 and learn all the details of this scheme.
3. Production Linked Incentive (PLI) Scheme
The PLI scheme’s main objective is to foster the manufacturing sector and reduce imports. It provides financial incentives to foreign manufacturers to start production in India, and domestic manufacturers to expand their production and exports.
The Government of India (GoI) has introduced 13 PLI schemes as of November 2020. This will help create new jobs and additional production of around 30 lakh crore during the next 5 years.
The 13 PLI schemes are as follows:
Auto components
Automobile
Aviation
Chemicals
Electronic systems
Food processing
Medical devices
Metals & mining
Pharmaceuticals
Renewable energy
Telecom
Textiles & Apparel
White goods
The PLI scheme is one of the government schemes for startups that would boost local manufacturing by providing financial incentives.
You can visit PLI Schemes and know the details of it.
4. Stree Shakti Package
Stree Shakti Scheme scheme is uniquely tailored for women wishing to become entrepreneurs or expand their existing businesses and is in association with the State Bank of India (SBI).
But to avail the loan, you need to be, or have one or more women who hold at least 51% share in the business.
As this scheme is women entrepreneurs-centric, relaxations in the margin are built into it along with a low floating rate of interest, linked to the bank's base rate.
Women entrepreneurs in retail trade, manufacturing, or services are eligible for the Stree Shakti Package scheme. Also, women serving as doctors, beauticians, and CAs can avail loans under the scheme.
It is one of the most beneficial government schemes for women in startups and small businesses.
You can explore more about this scheme at SBI,
or you can immediately apply for this loan by going to the nearest branch of SBI.
5. Pradhan Mantri MUDRA Yojana (PMMY)
The GOI initiated PMMY to provide business finance for micro-business units. This program was launched with the single motive of ‘paying the unfunded’. Most of the SMEs suffer from a shortage of funding, the government launched this program to promote the participation and growth of startups across different sectors like trading, manufacturing, services, etc.
PMMY is segregated into three sages, viz. 'Shishu', 'Kishore', and 'Tarun' signify the stage of growth/development and your business funding needs.
Shishu - covering loans up to Rs. 50,000/-
Kishor - covering loans above Rs. 50,000/- and up to Rs. 5 lakh
Tarun - covering loans above Rs. 5 lahkh and up to Rs. 10 lakh
PMMY is designed to cater to the needs of various sectors and entrepreneur segments.
Visit MUDRA and learn about the details of this scheme.
6. The Women Entrepreneurship Platform (WEP)
The Woman Entrepreneurship Platform was launched to promote women’s entrepreneurship. The NITI Aayog is the primary driver behind this program and this government scheme for women in startups, aims to cater to young and dynamic women entrepreneurs.
It is a unified access portal that acts as a common ground and brings together women from different parts of India. This will build a collaborative and thriving ecosystem of women entrepreneurs that enables them to embark on their entrepreneurial journey.
This government scheme is divided into 3 parts: Gyaan Shakti, Iccha Shakti, and Karma Shakti.
Iccha Shakti’ objective is to empower women to start a company.
Gyaan Shakti offers a favorable environment for setting up your business.
Whereas, Karma Shakti will support you with practical help while starting your business or scaling it up.
Any organization led by women entrepreneurs - be it an NGO, Corporation, or association can apply under this program. This government scheme also provides mentoring, credit score improvement, tie-ups with corporations, etc.
Visit WEP and learn the details of this scheme.
7. Credit Link Capital Subsidy Scheme
The government of India launched the Credit Link Capital Subsidy scheme for SMEs to reduce the cost of production. It aims to provide an upfront 15 % capital subsidy (on institutional finance of up to Rs 1 crore availed) for the installation of well-established and improved technology to reduce the cost of production.
This will enable you to stay competitive with companies in local and foreign markets.
This government scheme for SMEs and startups helps you to improve productivity through technological upgrades. They can be induced into various systems and processes, such as sales, marketing, delivery modules, etc.
You can avail the Credit Link Capital Subsidy scheme if you are an SME owner and have a valid UAM number.
You can learn all the details of this scheme at Credit Linked Capital Subsidy Scheme.
Now, you must have an idea of how the government can aid you in your startup endeavor. This will help you figure out how to garner funding for your startup.
But it takes a lot more than just funds, to build a “successful startup”...
Incubation… a Good Office Space… Finding a Product Market Fit… Ahh!!.. The list goes on.
Don’t worry! We have got your back!
Be a part of Beginest, a cult of seasoned entrepreneurs and startup founders focused on creating value for each other. We have coworking spaces in Bangalore and provide mentoring, incubation, networking opportunities, and everything needed to take your business to the next level.
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