What is the start-up India scheme?

The Start-up India came into effect on 16th January 2016, to reduce the unemployment rate of India, which has increased to 7.6% from 4% between the years 2017 and 2019. The Start-up India scheme is an initiative by the Government of India to provide affordable business finance to the entrepreneurs of the country. The scheme provides subsidised loan amounts of Rs. 10 lakh to Rs. 1 crore to women entrepreneurs and entrepreneurs from SC and ST communities.

Features and benefits of the start-up India scheme

  • Easy access to loans

    Easy access to loans

    The Government has a central portal and a mobile app through which you can apply and view your status & approval details.

  • Tax holiday

    Tax holiday

    The Start-up India initiative provides an income tax holiday of 3 years to its users.

  • Long repayment tenor

    Long repayment tenor

    Applicants can enjoy a repayment period of 15 years.

  • Low-interest rates

    Low-interest rates

    Enjoy low-interest rates when applying for a loan under the Start-up India policy.

Eligibility criteria of the start-up India scheme

  • Age

    Age

    Applicants are required to be above 18 years of age.

  • Type of business

    Type of business

    Either a partnership firm or a private limited company is eligible to apply.

  • Business existence

    Business existence

    Firms should not be older than five years.

  • Business turnover

    Business turnover

    The organisation should not have crossed the turnover threshold of Rs. 25 crores.

  • Shareholders

    Shareholders

    The Start-up India loan is for firms with 51% shares held by women or individuals from the SCs or ST communities.

In addition to the above, you will require a patron guarantee from a trademark office and an Indian patent and approval from the Department of Industrial Policy and Promotion (DIPP). If your firm specialises in providing fund and equity services, it should be registered under the Securities and Exchange Board of India (SEBI). Also, your firm should hold attractive policies and products.

If you fail to match all the criteria mentioned above, you can apply for finance solutions that come at low interest rates. Bajaj Finserv provides Loans Against Property that you can avail of after meeting the minimum eligibility criteria. You get ample funds up to Rs. 10.50 crore* and a long tenor to make your EMIs affordable.

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The application process for the start-up India scheme

There are two ways in which you can apply for a subsidised loan under the Start-up India scheme.

  • Through financial institutions and NBFCs: You can apply for funding to various financial institutions and NBFCs providing loans under this scheme
  • Through the official portal: To start the process ,access the official portal of the Start-up India and fill the available application form with the required personal and financial details

You will be required to show some papers after meeting the eligibility criteria. The necessary documents are KYC documents, address proof, business address proof, income proof, and business existence proof. Additional documents may also be required to apply for this loan as per the lender.

Frequently Asked Questions

What is Stand-Up India scheme?

The Stand-Up India scheme is an initiative launched by the Government of India to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs).

When was Stand-Up India mission launched?

The Stand-Up India scheme was launched on April 5, 2016, by the Prime Minister of India, Narendra Modi. The scheme was introduced as part of the government's broader efforts to promote entrepreneurship and financial inclusion among women, Scheduled Castes (SCs), and Scheduled Tribes (STs).

What are the benefits of Stand-Up India Scheme?

The Stand-Up India scheme provides financial support to entrepreneurs, focusing on women, Scheduled Castes (SCs), and Scheduled Tribes (STs). It offers loans for establishing new ventures, with benefits such as access to finance, margin money support, interest rate subsidies, an extended repayment period, and a focus on skill development.