Have you ever had great startup idea with prefect team but you immediately scrap the idea just because of lack of reliable funding resources if the answer is “Yes” then the government has a solution to your problem. Now Indian government provides great funding schemes to your growing business. in this blog I will suggest you Top 7 Government startup funding schemes to grow your business.
Top 7 Government Startup funding schemes
1) SISFS : Startup India Seed Fund Scheme
The government of India Introduce this scheme in January 2021 to support the startup to their initial phase to provide them financial assistance for the proof of concept, prototype of development, product trials, market entry and commercialization. The objective of the scheme is to reduce the early stage “Valley of death” phased by startups and promote innovation across sectors. SISFS can access upto 50 lakhs debentures for commercialization and scaling and up to ₹20 lakhs for prototype development, testing and market entry.
Eligibility
- The startup must be DIIPT recognized
- Incorporated not more than 2 years before the date of application
- Must have innovative business idea capable of commercialization
- Must not have received more than ₹10 lakh in monetary support from other government schemes.
2) NIDHI : National Initiative for Developing and Harnessing Innovations
National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella programme conceived and developed by the Technology Translation and Innovation (TTI) Division/ National Science and Technology Entrepreneurship Development Board, of Department of Science & Technology, Government of India, for nurturing ideas and innovations (knowledge-based and technology-driven) into successful startups. NIDHI’s objective is providing financial,infrastructural and mentorship support to the innovators at different stages of their entrepreneurial journey.
Key Components :
1. NIDHI-PRAYAS (Promoting and Accelerating Young and Aspiring Entrepreneurs) :
- Provides funding up to ₹10 lakhs for innovators to develop prototypes.
- Focuses on aspiring entrepreneurs with innovative product ideas.
Eligibility :
- The applicant must be an Indian citizen aged 18 years or older.
- The idea must be technology-based and have commercialization potential.
- Applicants must not have received similar grants for the proposed idea.
2. NIDHI-Seed Support System:
- Offers seed funding up to ₹1 crore through incubators to help startups scale and commercialize.
Eligibility :
- The startup must be registered as a private limited company.
- The project must demonstrate innovation and potential scalability.
- The startup should ideally be in its early revenue stage.
3. NIDHI-EIR (Entrepreneur-in-Residence):
- Provides a monthly ₹30000 to building entrepreneurs to support them during their beginning stage.
Eligibility :
- Must be a first-generation entrepreneur.
- Must not already own or have registered a company.
- Should be willing to pursue entrepreneurship full-time.
4. Technology Business Incubator (TBI):
- Mentorship and incubation facilities for the startup.
Eligibility :
- Must have basic infrastructure and expertise to support innovation.
3) PMMY : Pradhan Mantri Mundra Yojana
PMMY Pradhan Mantri Mundra Yojana is a flagship scheme by Government of India. With this scheme the government can grant up to ₹10 Lakhs of credit/loan to income generating micro enterprises. The Scheme provides financial assistance extended by Member Lending Institutions to the non-corporate, non-farm sector income generating activities of micro and small entities.
The loans under Pradhan Mantri Mudra Yojana can be availed through eligible Member Lending Institutions (MLIs), which include:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Micro Finance Institution (MFI)
- Non-Banking Finance Company (NBFC)
- Small Finance Banks (SFBs)
- Other financial intermediary approved by Mudra Ltd. as member financial institutions.
Note: The interest rates are declared by Member Lending Institutions from time to time as per Reserve Bank of India guidelines based on which applicable interest rate is determined.
4) CGTMSE : Credit Guarantee Fund Trust for Micro and Small Enterprises
CGTMSE : Credit Guarantee Fund Trust for Micro and Small Enterprises scheme is started by the Ministry of Micro,Small & Medium Enterprises. The objective of this scheme is It aims to provide collateral-free loans to Micro and Small Enterprises (MSEs), empowering them to access funding without the need for security or a third-party guarantee. Women- owned small and micro enterprises can get enhanced credit guarantee coverage of 90 percent under the CGTMSE scheme, after its board approved the new guidelines recently. In this scheme Micro and small enterprises can get up ₹2 Crore credit/loan. New or existing micro and small enterprises engaged in manufacturing,trading or services.
Note : The interest rate is decided under the guidelines of RBI.
5) Stand-Up India Scheme
Stand up india scheme is started by Ministry of Finance for financing SC/ST and or women entrepreneurs by facilitating bank loans for setting up a greenfield project enterprise in manufacturing, services, trading sector and activities allied to agriculture. The objective of the scheme is to provide a bank loan between ₹10 lakhs to ₹1 crore to at least one schedule caste or schedule tribe member or women in greenfield project. In case of non-individual enterprises, 51% of shareholder or controlling share should be an SC/ST or Women Entrepreneurs.
Eligibility
- If application is male then his caste should be SC/ST
- Applicant at least to be 18 years.
- Finance is provided only for greenfield projects.
6) SMILE : SIDBI Make in India Loan for Enterprises
The SIDBI Make in India loan for Enterprises (SMILE) scheme is a flagship initiative by the small industries development bank of india (SIDBI) to support the Government of India’s Make in India mission. The scheme was launched in 2015. The objective of the scheme is to provide financial assistance to MSMEs and startups in the manufacturing and service sectors.This scheme provides loan/credit upto ₹10 lakhs with a repayment tenure of up to 10 years, including a memorandum period 18-36 months. With this scheme concessional interest rate especially for enterprises promoting Make in India objectives like manufacturing, renewable energy, and infrastructure development.
Eligibility
- All MSMEs as per MSME Act 2006.
- Existing enterprises undertaking expansion, modernisation, technology upgradation and other projects for growing the business
- Emphasis on financing smaller enterprise within the MSME and also new enterprises in manufacturing as well as service sectors.
7) AIM : Atal Innovation Mission
The Atal Innovation Mission (AIM) is the flagship initiative by the NITI Ayong Yojna. To Promote innovation and entrepreneurs all across india. The scheme was launched in 2016 and the objective of the scheme is to provide financial,infrastructural and mentorship support to all startups, schools and entrepreneurs. AIM gives Benefits up to ₹10 crore for setting up incubation centers and scaling startups.
Eligibility
- Schools (Private or government) by recognized education boards in india.
- Startups, MSMEs and innovators who working with cutting edge technologies.
So this are the Top 7 Startup Funding scheme available in India. Start your scale up journey and make your dream idea come to with the schemes. Finding best government scheme for your startup can be difficult but that’s where expert guidance can make a difference. If you’re ready to take your business to next step and want personalised advice on selecting scheme right scheme, creating a winning scheme or maximizing your startup’s potential, Book a Consultation with Consultupindia!
