Top 10 Government Schemes Every Startup Should Know

The Central Government has been pushing for homegrown potential to thrive so that the economy gets a boost from the self-sufficiency brought on by startups. With initiatives like Make In India, the encouragement found many takers and saw the rise of some very promising entrepreneurs. Moreover, the project revived some e-commerce sites like ShopClues that were on the brink of shutting down. Connecting the company with hundreds of merchants who were eager to find a reliable platform to sell their beautiful handicrafts, the government gave it a second lease of life. 

Through its support for startup ventures, the government facilitates a smooth collaboration between the entrepreneurs and the investors. At present, startups must fulfil the category criterion, among others, i.e., they must fall under either of these four categories: education, agriculture, business, and livelihood. In this article, we will take a close look at 10 government schemes you should be aware of as a budding entrepreneur so that you get the best investment for your venture.

10 government schemes to watch out for

To make the best use of government schemes meant for startups, you must first take a look at the best ones to decide the most suitable among them. Here are 10 government schemes that are for you if you have a great startup idea in need of investment.

• Startup India Initiative

The Startup India Initiative is one of the best government schemes out there because it removes the tax burden from startup companies for three consecutive years! To be eligible under it, however, you need to register as a private limited company. Additionally, there are huge rebates on gathering intellectual property rights, so that you can work on innovation without being fettered by financial worries.

• Startup India Seed Fund Scheme

This scheme was launched in 2021 to help startups get started with their business. Funding was facilitated for areas that they needed help with in the initial days, such as the development of the proof of concept, or building prototypes. Moreover, this scheme promises grants of up to Rs. 50 lakhs for crucial stages like product development and scaling, thus helping startups to gain fast entry into the market.

• Credit Guarantee Scheme For Startups (CGSS)

This scheme would be one of the best choices for you if you do not have any property to pledge against the loan you want to get approved. The reason for this is that this scheme promises up to 75% of the loan without any collateral. Furthermore, you can get the loan amount by showing the capital expenses of your dream project. 

• Atal Innovation Mission (AIM)

The AIM has a robust financial endowment amounting to Rs. 10 crores dedicated to the setting up of Atal Incubation Centres. The scheme is especially beneficial to startups that are keen on innovation and want to work closely with academic institutions in the field of science and technology.

• Stand-Up India Scheme

It can be said that the government has addressed the need for inclusivity with this scheme that is meant for women entrepreneurs and ones from the SC/ST communities. Loans of up to Rs. 10 lakh are available for eligible candidates.

• Pradhan Mantri Mudra Yojana (PMMY)

The PMMY scheme is a graded endowment for small and micro enterprises that can apply for the relevant loan category. For instance, if you need loans of up to Rs. 50,000, you may opt for the Shishu category, and if you need a mid-range loan of up to Rs. 5 lakh, the Kishor category would be apt for you. For loans of up to Rs. 10 lakh, opt for the Tarun category and give your startup the financial boost it deserves!

• Software Technology Park (STP)

This scheme is one of the most important because it focuses on entrepreneurs keen on exporting computer accessories. It is a sector in which the nation has lagged, and the government is ushering in funds to turn the story around.

• Open Network For Digital Commerce (ONDC)

If you are an entrepreneur looking to make it big in the e-commerce domain, this scheme is meant for you. Grants worth crores have been allocated, directed towards ends like Google Cloud subscription and equity capital for top-performing teams.

• Dairy Processing and Infrastructure Development Fund (DIDF)

For enterprises keen on building dairy-related businesses, the DIDF fund is a great place to get things started. With 80% of the total financial requirement met at 6.5% interest annually, the deal is unputdownable.

• Multiplier Grants Scheme (MGS)

This scheme is the brainchild of the Department of Electronics and Information Technology. It is a scheme that can be triggered if an industry, such as an NBFC, collaborates with an academic institution in the line of R&D, and leaves the marketing to the institution. 

Conclusion

After you have gone through the ten best financial schemes endorsed and supported by the government, you will have a fair idea of how much capital you can expect from the scheme. It is not difficult to find your category among one of these heavily funded schemes, boasting tie-ups with reputable financiers like Bajaj Finserv. Therefore, stop worrying about your financial requirements, and let that idea earn all the financial support it needs to stay afloat from among these useful schemes!