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
The Government has a central portal and a mobile app through which you can apply and view your status & approval details.
The Start-up India initiative provides an income tax holiday of 3 years to its users.
Long repayment tenor
Applicants can enjoy a repayment period of 7 years and an additional 18 months as a moratorium period.
Enjoy low-interest rates when applying for a loan under the Start-up India policy.
Eligibility criteria of the start-up India scheme
Applicants are required to be above 18 years of age.
Type of business
Either a partnership firm or a private limited company is eligible to apply.
Firms should not be older than five years.
The organisation should not have crossed the turnover threshold of Rs. 25 crores.
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.
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.