In India, there are a lot of young, talented and creative minds who dream of starting something on their own. But because of a lack of funds and financial support, they face challenges in starting. Even if they have an amazing and brilliant idea, without money, it’s difficult to start. So, while keeping this in mind to solve this issue and encourage more startups, the Government of India launched the Startup India initiative.
This initiative, known as the Startup India Loan Scheme, aims to help and build entrepreneurs by providing them with easy loans and other support too in establishing and grow their business. So to know more about this scheme, keep reading this article till the end.
What is Startup India Loan Scheme?
The Startup India Loan Scheme is a government initiative launched under the broader Startup India campaign and it was introduced on 16th January 2016 by the Prime Minister of India. This scheme aims to provide financial assistance, support and mentorship to startups. Under this scheme, Startups can get loans through banks and financial institutions with easier terms and conditions compared to other business loans. This scheme also includes other benefits like tax exemptions, easier company registration, and access to various government services and platforms that help startups grow more efficiently.
Objective Of Startup India Loan Scheme
The main goal behind launching the Startup India Loan Scheme is to encourage entrepreneurship and to motivate young individuals to start their own ventures and to help them for the same government will provide easy access to loans at reduced interest rates and not so lengthy paper work. And by promoting startups, the government also aims to create more employment opportunities in various sectors. It will also boost innovations as this scheme supports startups working on innovative products and technologies. And the main thing is the scheme simplifies the process of starting and running a business.
How to Apply Online for Startup India Loan Scheme
- Go to the Startup India official portal: https://www.startupindia.gov.in
- On the homepage, click on the Register button and fill in your basic details.
- After that You will need to provide your email ID and mobile number for verification.
- After verification, log in and Upload documents like your Certificate of Incorporation, PAN card, and other business details.
- After that to avail the benefits, your startup must be recognized by DPIIT (Department for Promotion of Industry and Internal Trade). It proves that your startup is innovative and meets the required criteria.
- After getting DPIIT recognition, you are eligible and you can approach banks or financial institutions partnered with the scheme.
- You will have to submit a loan application along with a detailed project report, business plan, and required documents.
- After submitting all required documents, your application will be reviewed.
Benefits Of Startup India Loan Scheme
- You will get easy access to get business loans without the usual heavy collateral requirements.
- The interest rates are lower, which reduces the financial burden.
- And mostly loans under this scheme do not require any collateral.
- You will also get tax benefits as you will get exemption for 3 consecutive years.
- You will get mentorship and industry networks too.
Eligibility Criteria
- The startup must be registered as Private Limited Company, Partnership Firm or Limited Liability Partnership
- The business must be incorporated within the last 10 years.
- The annual turnover of company should not exceed Rs100 crore in any financial year.
- The startup must be working on innovation, development, or improvement of products or services.
- And must have DPIIT Recognition to get the benefits.
Ineligibility Criteria
- The company older than 10 years from the date of registration.
- If the business is not involved in any innovative product or service.
- If the company have a poor credit history.
- And if they involved in illegal or restricted business activities.
Short Overview of Startup India Loan Scheme
| Name of scheme | Startup India Loan Scheme |
| Launched by | Government of India |
| Managed By | DPIIT, Ministry of Commerce and Industry |
| Official Portal | startupindia.gov.in |
| Target Group | New Entrepreneurs and Startups |
Action Plan for Startup India Scheme
- The startup initiative has a strong and structured Action plan which focuses on
- Simple and online startup registration.
- Creation of Fund of Funds worth Rs10,000 crore to support startups.
- Tax benefits for startups and their investors.
- Setting up of Startup India Hubs with educational institutions.
Required Documents
- Certificate of Incorporation/Partnership
- PAN Card
- Address proof of business location
- Aadhaar Card and Identity Proof
- Detailed Business Plan
- DPIIT Certificate of Recognition
FAQs
Is the Startup India Loan Scheme only for tech startups?
No, the scheme is open to all kinds of startups, it just need to be innovative and meet the eligibility criteria.
How much loan can I get under this scheme?
There is no fixed amount. It depends on your business requirements
Do I need to submit collateral for the loan?
Usually, no collateral is required, especially for loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises
Is there any fee to apply for Startup India registration?
No, registration on the Startup India portal is completely free.
Khushi Singh
Khushi Singh is a content writer with 3 years of experience in government schemes. She writes simple and helpful articles that guide people to understand and benefit from public welfare programs.