Start-Up India Scheme- Overview

Start-Up India came into effect on 16th January 2016 in an attempt to reduce the unemployment rate of India, which has increased to 7.6% from 4% between the year 2017 and 2019. 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 amount of Rs.10 Lakh to Rs.1 Crore to women entrepreneurs and SCs and STs. Let us understand the.


Start-up India Scheme Details and Features

  • Provides A Centralised Portal And App:
    The Government has launched a centralised mobile application and portal to help applicants review all the required details such as approvals, registration status, etc. You can also fill the application form for such loans available on the portal.
  • Tax Holiday:
    The Start-Up India initiative is to provide income tax holiday to its users for 3 years.
  • Prolonged Repayment Tenure:
    Applicants can enjoy a repayment tenure of 7 years with an additional 18 months of the moratorium period.
  • Low-Interest Rates:
    Enjoy the lowest interest rate when applying for a loan under the Start-up India policy. Loans sanctioned under this scheme are linked to MCLR.

Start-up India Scheme: Eligibility Criteria

  • Age: Applicants are required to be above 18 years of age.
  • Type Of Business: Businesses should either be a partnership firm or a private limited company.
  • Business Existence: Firms should not be older than five years.
  • Business Turnover: The organisation should not have crossed the turnover threshold of Rs.25 Crore.
  • Shareholders: Start-up India loan is for firms with 51% shares held by women or SCs or STs.

In addition to the above, you will require a patron guarantee from trademark office and Indian patent and approval from the Department of Industrial Policy and Promotion (DIPP). If your firm is specialised in providing fund and equity services, it should be registered under 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 advances that are provided at a low-interest rate. Bajaj Finserv provides you Loan Against Property that you can avail after meeting minimal eligibility criteria such as age bracket of 25 to 70 years and CIBIL Score of 750 and above. They also provide a longer tenure to make your EMIs affordable.

Start-up India Scheme: Application Process
 


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

  • Through Financial Institutions and NBFCs: You can apply to various financial institutions and NBFCs providing advances under this scheme.
  • Through The Official Portal: Access the official portal of Start-up India and fill the available application form with the required personal and financial details.

You will also be required to furnish 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.