*New finance opportunities for startups from the Government of India*
The latest research shows that in the first year of service over 94% of new companies collapsed. One of the common reasons is the lack of funding. Money is every enterprise's bloodline. The long but exciting journey from the idea to a business that generates revenue requires fuel called capital. That's why entrepreneurs are wondering at almost every stage of the business – how do I finance my start-up?
Now, when you will need funding will largely rely on the nature and form of the company. But once you have realized the need for fundraising, below are some new financing options for startups from the Indian government.
In recent years, over 50 + startup schemes have been implemented by the Indian government. Each start-up system is designed to strengthen the ecosystem of the Indian startup. Here is an extensive guide listing, 10 financing options for start-ups to help you raise your business capital
Led by: Scientific Assistance Committee for Biotech Industry (BIRAC)
This is a special "breakthrough study" scheme that permits the production of products and processes and is patentable with industry ownership rights. In seven wide themes, suggestions are invited:
Drugs, including medical items Clinical trials and vaccines Bio-like & stem cells Diagnostics and appliances Agricultural practices Biotechnology for industry, including secondary agriculture Environmental computing.
Eligibility: Indian companies, Indian companies collectively owned national R&D bodies and organizations, or Indian businesses with domestic research organizations.
Funding: The chosen projects will be given financial assistance in the form of a subsidy of up to 50%, and the remaining costs will be covered by the company. The fund is divided over installments.
Led by: Ministry of Engineering and Technology.
The Modified Special Incentive Package Scheme was launched to attract investment in electronic production. The stimulus will go to the production of semiconductor and eco-system displays such as LCDs, OLEDs, storage devices, solar cells, and so on. Eligibility: New or existing electronic manufacture expanding projects.
Financing: For companies engaged in electronic manufacturing, the scheme offers a capital grant of 20% to SEZ and 25% to non-SEZ... A refund of excise duty is also provided for capital equipment in non-SEZ units or CVDs. For those categories where the investment limit is 1 crore INR to 5000 crore INR, the scheme is available.
Led by: India Development Bank for Small Industries (SIDBI). SC / ST / female entrepreneurs could use the scheme for creating a Greenfield business in the area of production, services, or trading. SC / ST / female entrepreneurs with 51 percent or more SC / ST / female under 18 years of age or non-female entrepreneurs. No bank or financial institution should be in default with the borrower.
Financing: Facilities for a minimum of one SC / ST/woman entrepreneur to lend banks between 10 lakh INR and 1 crore INR.
More details: https//ww.standupmitra.in/
Led by: Ministry of MSME through National Small Industries Corporation (NSIC)
Small industries play a significant role in our economy's development. The SSI credit rating will encourage them to increase their productivity, as a good credit rating improves its market acceptability. Rating agencies have various systems for assessing different SSIs. The scheme is eligible for all recognized MSMEs.
Eligibility: MSMEs recognized Financing: The objective of this regime is to provide independent and trustworthy third party opinions on the capabilities and lend ability of MSEs and to ensure greater productivity by providing lending at attraction rates. In line with this scheme (as with the MSE turnover), the Ministry of the SSI reimburses a percentage of the fees for rating agencies. The rating agency's fee is based on SSI's turnover. SSI's turnover is divided into three plates. A certain percentage of the rating fees can be used by the ministry based on the slab into which the SSI falls.
The goal is to provide financial assistance to micro units by lending to vendors, shopkeepers, and other activities in the services sector. Micro units are supplied with financial assistance for purchasing equipment. Car loans are also available for transportation.
Financing: it provides benefits in three ways: Up to 50 000 INR covering Shishu Kishor covering over 50 thousand and up to five lakhs of INR Five lakhs Tarun and up to 10 lakh INR cover the loan.
More details: httpsww.mudra.org.in/
Established sectors: Besides, industry/activity-based schemes will be built to optimize the coverage of beneficiaries and tailoring goods to suit particular company needs. Initially, proposals for such activities/sectors are suggested based on a higher concentration of businesses: Land Sector / Activity — Service units for the procurement of transport of vehicles, including the car rickshaw, small car transport vehicle, 3 wheelers, e-Upshaw, passenger cars, taxis, etc. Land transport sector/activity. Community and social and personal facilities – saloons, leisure centers, fitness room, restaurants, tailor-made stores, dry cleaning store, a repair shop for bikes and motorcycles, DTP and photocopying, medical restaurants, delivery services, etc. activities. Food Sector – Support for business activities such as papad making, achaar making, jam/jelly making, rural preservation of agricultural products, sweet shops, small food stores and day to day catering and food services, cold chain vehicles, cold storage, ice cream making systems, cookies, bread and bun making, etc. A sector of food products will be provided. Section/activity textile items-To help businesses such as handloom, energy, chikan, zari, zardozi, and other textile non-garment products, such as bags, vehicle supplies, furnishers, etc. — traditional hand and handwork, traditional teeth and printing, fashion garments, knitting, cotton ginning, computerized bread, stitches, etc.
How can I apply?
The local branch of any other financial institution in their field, such as PSU Banks, Regional Rural Banks, and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance (MFIs), and Non-Banking Finance Companies (NBFC), can be reached by the lenders wishing to make use of Pradhan Mantri Mudra Yojana (PMMY). Assistance penalty is in compliance with the applicable institution's eligibility requirements.
