Government Loan For Business Startup in India by Government – Subsidy

By | April 30, 2019
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India has the third largest startup base in the world.  Ideas, passion, and dedication alone cannot keep entrepreneurs going. They also require money. The government is striving to make credit easily available to startups. With the number of startups rising by the day. The Government is doing its part to promote and support them. For this government has come up with Government Loan for Business.

India is home to a large number of startup companies. The number of small units are on the rise. However, these startups need funds to grow and manage and to thrive in the market. As these units do not have any access to raise funds from the market. The government has taken an initiative to provide finances to promote these SSI’s.

government loan for business

Government Startup Business Loans

Government Startup Business Loans portals

  • The Credit Guarantee Scheme (CGS).
  • MUDRA Loan Scheme.
  • Stand Up India Scheme.
  • Bank Credit Facilitation Scheme.
  • Coir Udyami Yojana.
  • Market Development Assistance Scheme for MSMEs.
  • National Bank for Agriculture and Rural Development (NABARD).

 

Government Subsidy Loan for Business Required Papers

The borrower needs to submit the following information for Startup India Loan.

  1. Personal background: Details of your background are checked.
  2. Financial statement: Applicant must submit the P&L, balance sheets, and CFS.
  3. Resume or business background: Details of the business and the applicants’ experience.
  4. Legal documents: Applicant must provide proof that the business is run legally.
  5. Personal and business tax returns: Applicant must submit tax returns for the past 3 years.
  6. Business plan: The applicant needs to write a well-thought business plan.

Eligibility for Government Loan for Business Startup in India

Startup Loan for New Business is an initiative of the Indian government.

The eligibility criteria of startup India are as follows:

  • The firm must have a letter by incubation.
  • Government Business Loan for Unemployed is the basic scope.
  • The total turnover of the firm should not exceed Rs 25 crores.
  • The company must be a private limited company or an LLP.
  • An Incubation fund, Angel Fund or Private Equity Fund to fund the firm.
  • And, the firm should have obtained a patron guarantee.
  • Furthermore, the firm must provide innovative scheme and products
  • Also, the firms should have obtained approval from DIPP.

Startup India registration:

To apply for Government Loan for Business Startup in India follow:

  1. Log on to startup India portal.
  2. Enter your entity.
  3. Enter your business registration number.
  4. Insert the registration date.
  5. Enter your PAN number.
  6. Enter the address, pin code and state.
  7. Insert details of authorized representatives.
  8. Enter the details of the partners.
  9. Upload the required document.
  10. File the registration certificate of the company.

For more information about the scheme, click HERE.

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