ICAC Online Learning Environment

How to Access Top Government Schemes for Startups

With meaningful jobs in terms of work-salary parity declining worldwide, a definite gap has been created in the market for innovative startups. A good entrepreneur can be the architect of an idea that would serve his business as well as financially stabilise a workforce. In a bid to help such a group of talented individuals who dare to dream big, the government has brought forth aggregator websites with a bunch of credit-based schemes that can kick-start their endeavour. The Make In India project is one among such ventures that has already given rise to remarkable innovation. Furthermore, it is a given that to produce good entrepreneurs, the pool of prospective entrepreneurs must be sufficiently widened.

Taking a step towards fulfilling this aim, the government has facilitated the collaboration of investors and common people so that the diverse financial needs of the latter can be fulfilled. For instance, schemes like the Kisan Credit Card Agri Loan or the e-Kisan Upaj Nidhi aim towards improving the financial conditions of those dependent on agriculture for income. Thus, a holistic financial upliftment of people promises to build the mentality to form start-ups that have potential. In this article, let us try to explore the ways in which a budding investor can proceed towards becoming a successful and empowering entrepreneur of the future.

Getting started with startup schemes

Government schemes may seem difficult to navigate, especially for beginners, but we have got you covered. Here is a brief guide:

• Exploring the right portals: The first stumbling block that new entrepreneurs face is where to get started on their investing journey. However, with portals like Invest India, they can sort by their respective home state the opportunities and endowments available from investors. From assisting the startups in finding the best investor and then facilitating meaningful correspondence between them, the portal promises assistance in every step. Moreover, government initiatives like the JanSamarth portal help those dependent on agriculture and running self-help groups in applying for loans and credit.

• Understanding if you are eligible for the scheme: First off, you need to check the eligibility criteria put in place by the portal you are considering. These portals try to understand the viability of your startup, with pointers trying to gauge metrics like your company type, what its original vision was, and its scalability based on its current and projected turnovers.  These eligibility criteria will not only help you understand where you stand with respect to the required standards, but also determine your line of action to become eligible in the future.

• Apply online: Once you have understood the schemes and have a fair expectation of whether you can get the credit sanctioned, apply online. Go to the application page of the portal, and select the loan that best aligns with your business/interests. Do not forget to explore all the options because you might be eligible for more than one loan. For instance, let us assume you are applying for a Business Activity Loan under the Stand Up India scheme. Now, you are getting a loan for a manufacturing plant that you plan to run on solar power. In that case, you might want to apply for an additional loan under the Renewable Energy scheme.

• Get digital approval: The Central Government, under its JanSamarth portal, has enlisted the investors who are ready to put their money on projects that fall under the category of education, business, livelihood and agriculture. These investments are made through the framework of 13 Central Government schemes designed to be of assistance to startups. Apply soon and get a digital approval for your loan today, without the hassles of regular visits to investors’ offices.

• Track your application status: The best part of applying for loans online is that you can easily visit the application status page. Once on the page, you can ascertain if your application has been accepted and moved to the next stage for approval.

Some key schemes to consider

When you browse the government portals, certain schemes can be more useful than others.

• Startup India Seed Fund Scheme

• Pradhan Mantri Mudra Yojana (PMMY)

• Women Entrepreneurship Platform

• Venture Capital Assistance Scheme

• SIDBI Fund of Funds

All of these schemes work under the regulatory guidelines framed by the government and are funded by investors, big and small, including trusted NBFCs. They cater to a varied pool of startups pertaining to the accepted fields and make sure that good ideas are not obliterated for lack of financing.

Conclusion

The best thing you could do before actually applying for the government schemes meant for startups is to understand your financial requirements. Doing so will help you gauge the extent of your current limitations and prepare for the future. Once you figure this out, there is no stopping you because reputed financial entities like Bajaj Finserv are part of this government initiative, thus putting an end to your financing worries. Check the eligibility of your startup venture, visit the relevant government website and get your loan approved!