Start-Up India Scheme Eligbility Criteria
The Start-up India scheme was initiated by the Central Government on 16th January 2016 to boost entrepreneurship in India. It aims to offer easy financing options of the start-ups. It provides advances ranging between Rs. 10 Lakh to Rs. 1 Crore to SC, ST and women entrepreneurs. Meet the Start-up India scheme eligibility criteria mentioned below to avail loans at a subsidised interest rate.
- Vintage
A startup applying for this scheme should not have more than 5 years of existence.
- Age
Individuals applying for this scheme must have an age of more than 18 years.
- Company Type
To apply under this scheme, a company should be a partnership or a private limited firm.
- Annual Turnover
To be eligible under this scheme, a company should not have a yearly turnover of more than Rs. 25 Crores.
- It must not be a Reconstructed Company
Startups applying for this scheme should not be a result of splitting or reconstruction of a business. A company formed out of splitting of an organisation into two or more businesses are not eligible to apply for this scheme.
- Involved in a New Product or Service
Companies working towards the development of a new product or service are eligible to avail benefits under Start-up India policy.
The conditions that they must fulfil -
i. Concerned start-ups must work to develop, deploy, commercialise any product or service that is driven by the latest technology or intellectual property.
ii. Start-ups must aim to improve an existing product or create a new one that can enhance value for the customers or enhance workflow.
iii. Start-ups must not be involved in developing and commercialising a product that is not unique without any scope of enriching the value for customers or increasing workflow.
- Registrations and Approvals
Startups are required to possess the following approvals and documents to avail a Start-up India loan.
i. Startups are required to obtain approval from the Inter-Ministerial board under the Department of Industrial Policy and Promotion (DIPP).
ii. Recommendation of an incubator from any post-graduation college.
iii. Recommendation from an incubator recognised by the Central Government.
iv. A patent filed and published in Journals of Indian Patent Office in the specific area of product or service.
v. Registration under Securities and Exchange Board of India (SEBI) for startups providing funding and equity services.
vi. Funding letter from State Government or Central Government of any scheme to promote innovation.
- Partnership Share
For partnership start-ups, 51% of the shares are required to be owned by a woman or individuals belonging to the Scheduled Caste and Scheduled Tribe categories. They should not have defaulted on any payments of their previous credits.
Individuals who are not eligible to avail benefits under Start-up India initiative can avail a Loan Against Property from Bajaj Finserv to serve the purpose. It comes with a high loan amount up to Rs. 3.5 Crore to cater to various needs of a business.
Meet the eligibility criteria mentioned above and avail credit under Startup India scheme. Make sure you read the Start-up India scheme details to be aware of the documents required.
