Have a startup idea but no money? You will get money from these government schemes.
New Delhi. Every startup starts with an idea, but bringing that idea to life requires skilled leadership and adequate funding. Startups can get funding through angel investors, friends and family, or loans. The government has launched many schemes to support startups in India.
To take advantage of these schemes you need to keep these three things in mind. The first is credit history. Lenders prefer to lend only to startups that have the ability to repay the loan. The second is the type of business. Depending on the type of business and the risks associated with it, the loan may be approved. If your startup is profitable and able to repay the loan in the future, the lender will be confident in lending. Let’s know about these schemes and their eligibility.
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1. Pradhan Mantri Mudra Yojana (PMMY)
Under the scheme, which was launched in 2015, loans of up to ₹ 10 lakh are given to non-corporate and non-agricultural small and micro enterprises. About Rs 5,32,358 crore of loans were disbursed under this scheme in 2023-24.
Types of Loans
Child: Up to ₹50,000.
Kishore: ₹50,001 to ₹5 lakh.
Tarun: Rs.5 lakh to Rs.10 lakh.
2. Stand Up India Scheme
Under the scheme, which was launched in 2016, loans ranging from ₹ 10 lakh to ₹ 1 crore are given to SC/ST and women. This scheme is applicable only for new projects (greenfield projects).
Who can borrow?
Persons above 18 years of age.
Private Limited, LLP, or Partnership Firm.
Firms with turnover below ₹25 crore.
3. Credit Guarantee Fund Scheme (CGSS)
Launched in 2016 under the Startup India Action Plan, the scheme provides unsecured loans to accredited startups.
Eligibility
Startup recognized by DPIIT.
A startup with a stable income stream.
There should be no defaulters or NPAs.
4. Prime Minister’s Employment Generation Program (PMEGP)
The scheme provides financial support for setting up new micro-enterprises and generating employment in rural and urban areas.
Loan limit
25 lakhs for the construction sector.
10 lakhs for service sector.
Eligibility
Persons above 18 years of age.
At least 8th grade pass.
Applicable to new projects only.
These government schemes not only encourage startups but also help them grow. If you are planning to start a startup or need funds for an existing startup, take advantage of these schemes.
Tags: business news, Indian startups
First Publication: December 28, 2024, 18:13 IST
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