What is the start-up India scheme?
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 for start-ups in the country as these entities may face difficulty accessing formal loans. The scheme provides funding between Rs. 10 lakh and Rs. 1 crore to SC, ST, and women entrepreneurs. However, considering the strict criteria, it is likely that many won’t qualify under the scheme. In such cases, another viable option is the Bajaj Finserv Loan Against Property.
With this instrument, borrowers can avail funding up toRs. 5 Crore* to fund all types of business expenses. The loan has several features including a flexible tenor that ranges up to 18 years, a competitive interest rate, the minimal requirement for documentation, simple criteria, and quick disbursal within 72 hours* of approval. To access funds with this offering, meet the eligibility criteria, submit the documents, and apply online.
The Start-up India scheme eligibility criteria
For budding entrepreneurs to avail funding under the Start-up India scheme, meeting the criteria put in place is important. Here is a detailed breakdown of the eligibility criteria for the Start-up India scheme.
- Vintage: A start-up applying for this scheme should have a business vintage of more than 5 years.
- Age: Individuals applying for this scheme must be over the age of 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 crore.
- It must not be a reconstructed company: Start-ups applying for this scheme should not be a result of splitting or reconstruction of a business. A company formed out of splitting 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 of benefits under the Start-up India policy. The conditions that they must fulfil are:
- Concerned start-ups must work to develop, deploy, or commercialise any product or service that is driven by the latest technology or intellectual property.
- Start-ups must aim to improve an existing product or create a new one that can enhance value for the customers or enhance workflow.
- 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: Start-ups are required to possess the following approvals and documents to avail of a start-up India loan
- Start-ups are required to obtain approval from the Inter-Ministerial board under the Department of Industrial Policy and Promotion (DIPP).
- Recommendation of an incubator from any post-graduation college.
- Recommendation from an incubator recognised by the Central Government.
- A patent filed and published in Journals of Indian Patent Office in the specific area of product or service.
- Registration under Securities and Exchange Board of India (SEBI) for start-ups providing funding and equity services.
- Funding letter from the state government or central government of any scheme to promote innovation.
- Partnership share
For partnership start-ups, 51% of the shares should be owned by a woman or individuals belonging to the Scheduled Caste (SC) and Scheduled Tribe (ST) categories. They should not have defaulted on any credit payments.
Terms and conditions applied *