Lately, India has been rising up to the challenge of creating a job on its own. Start-ups of various natures are just the beginning of more great things to come. Apart from a revolutionary and unique idea, the next crucial thing required by a start-up is funds. Bootstrapping, friends and family, Angel Investors are all good, but a startup also seeks and needs help from the Governing Body.
With the Start-up India Initiative, the Indian Government has come up with various schemes that benefit the startup in different ways. Here we bring five of those various schemes that are assisting the entrepreneurs in making it big.
The Venture Capital Assistance Scheme
Powered by the Ministry of Agriculture and Farmers Welfare, this scheme provides financial support via an interest-free loan to qualifying projects. This helps companies to meet the shortfall in the capital requirement for the implementation of the project. This scheme typically benefits the following:
- Farmers
- Producer Groups
- Self Help Groups
- Companies
- Agripreneurs
- units in agriexport zones
- Agriculture graduates individually or in groups for setting up agribusiness projects.
Stand-Up India for Financing SC/ST and/or Women Entrepreneurs
Powered by Small Industries Development Bank of India (SIDBI), this scheme facilitates bank loans between 10 lakh and 1 crore. This loan can be provided to at least one scheduled caste (SC) or Scheduled Tribe borrower and at least one woman per bank branch for setting up a Greenfield enterprise i.e the first time venture of the beneficiary in the manufacturing or services or trading sector. In the case of non-individual enterprises, at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman Entrepreneur.
Multiplier Grants Scheme
Powered by Ministry Of Electronics and Information Technology, Multiplier Grants Scheme (MGS) aims to encourage collaborative R&D between industry and academics/ R&D institutions for the development of products and packages. Financial support up to twice the amount provided by the industry is given for R&D for the development of products that can be commercialized at the institution level. The proposal is to be submitted jointly by the institution and the industry supporting it.
Dairy Entrepreneurship Development Scheme
Powered by National Bank for Agriculture and Rural Development (NABARD), the scheme is also backed by Department of Animal Husbandry, dairying and fisheries. The scheme aims at generating self-employment opportunities in the dairy sector, covering activities such as enhancement of milk production, procurement, preservation, transportation, processing and marketing of milk. It provides a back-ended capital subsidy for bankable projects.
Pradhan Mantri Mudra Yojana
Powered by the Government of India, Micro Units Development and Refinance Agency Ltd. [MUDRA] yojna is an NBFC supporting the development of the microenterprise sector in the country. It provides refinance support to Banks / MFIs for lending to micro units having loan requirement up to 10 lakh. The offerings are being targeted across the spectrum of beneficiary segments. Mudra loan is extended for a variety of purposes which provide income generation and employment creation mainly for:
- Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities
- A working capital loan through MUDRA Cards
- Equipment Finance for Micro Units
- Transport Vehicle loans
Apart from the above-mentioned schemes, there are several others that cater to the different needs of the Startups.
