5 Top Schemes To Get Funding for Startup in India
The days are gone when people look for a job. Now every second person wants to start their own business. However, it is not easy to start your venture as Many obstacles come in the way. Although the stats reported that around 300 million people across the globe are trying to open their businesses, some are even successfully succeeding. But we can’t deny the fact that Many are still struggling to meet their financial ends. To tackle one of the obstacles in setting up a business, we came here to share a dedicated article on the subject Get Funding For Startup.
With the help of this article, the readers will know How To Get Funding For A Startup In India. We can’t deny the fact that while setting up the business, financial aid plays a crucial role. However, not everyone has a strong financial background so how one can start a business from scratch without the interruption of finance. Not a single person can set up an empire with just a great idea, the capital plays an equal role in it. While establishing any business needs capital investment, whether the startup is any type of MSME or large enterprise. Not only for setting up but capital also needs to run a business for the long run and to expand as well.
However, we can’t ignore the fact that it is not easy to get funding, so how can one Get Funding For Startup? Let’s find out the solution for your financial aid through this article.
Government Funding For Startup
As we all know, in 2015, The Prime Minister of India introduced an initiative Make In India. It is based on four pillars, which have been recognised to give an augmentation to entrepreneurship in India, not only in the manufacturing sector but also in other sectors. The primary motive of this initiative is to facilitate investment, foster innovation, create best-in-class infrastructure, and make India a destination for design, innovation and manufacturing. In this regard, many government funds are set up to provide the facility to new entrepreneurs who want to promote the initiative of “Make In India”.
There are several government funds are available for startups such as Pradhan Mantri Mudra Yojana, Aspire, Multiplier Grant Scheme, Atal Innovation Mission, Credit Guarantee Trust Fund, Coir Udyami Yojana, Single Point Registration Scheme, the Standup India Scheme, Startup India Initiative and much more. Now, most of you are keen to know how one can get funding for their business through these schemes. To know that just keep on reading “How To Get Funding For Startup In India.”
Many initiatives have been taken by the government to provide technical support, financial assistance and subsidies including other services to help startups to establish, grow and showcase their presence in the global business domain. In the above paragraph, we have already mentioned some of the schemes initiated by the government to provide “Funding For Startup In India” and what are the ways to “Get Funding For Startup”. Here, we will talk about the top schemes to get support from the Government to get funds for startups.
1. Atal Innovation Mission (AIM)
It is a government funding scheme to provide financial aid to new startups. It was launched in 2016 by the central government to foster innovation. This scheme provides around Rs 10 crores to provide financial aid to companies over five years. AIM facilitates the provision of aid to emerging organizations in agriculture, health, transportation, education, and much more. Through this scheme, the new entrepreneurs can easily “Get Funding For Startup”.
2. Startup India Initiative
As the name suggests, it is another government scheme for new and well-established startups. Startup India Initiative is an easy way to “Get Funding For Startup”.It is one of the famous schemes of the government for helping new startup programmes in India. Just like the AIM scheme, it is also focused on providing tax benefits to businessmen for over 5 years. At the time of writing, the Department for Promotion of Industry and Internal Trade (DPIIT) has registered more than 114,458 startups in India. Entrepreneurs can register their business under this scheme only after the maximum age for startups is 7 years, and for companies who work in the domain of biotechnology, the age is 10 years.
3. Multiplier Grant Scheme (MGS)
This scheme is created by the Department of Electronic and Information Technology to empower joint research and development within industries with the vision of growth of goods and services. Simply said, this scheme is also beneficial to “Get Funding For Startup”.Under this scheme, the government can provide more than Rs 2 crore but the duration will be less than 2 years. As per this government scheme, if the industry supports R&D for the development of products that can be commercialized at the level of the institution, then they can apply for this scheme and get capital investment.
4. Startup India Seed Fund Scheme
This scheme was introduced in January 2021 by the government of India to provide help to those startups who just laid their foundation in the business sector. After registering under the scheme, the government will select start-ups and then provide a capital investment of up to Rs 5 crore. The early-stage startups will get up to Rs 20 lakhs for creating the concepts and up to Rs 50 lakhs for those industries that are growing. To date, more than 1000 startups have got more than Rs 178 crore. With the help of this scheme one can easily “Get Funding For Startup”.
5. A Scheme for Promotion Of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
It is also one of the most popular initiatives taken by the government of India to provide financial aid to new as well as established startups. This initiative is focused on providing help to entrepreneurs to become large-scale firms. Another factor that is kept in mind while launching this scheme is to set up technological and incubation centers across rural India for the Ministry of Micro, Small & Medium Enterprises.
Apart from this “Government Funding For Startup ”, many other options are available to “Get Funding For Startup” such as taking small business loans from MFIs and NBFCS. Those who are new in the business sector and do not have a strong financial background and even fail to maintain a credit score, then it is obvious to find difficulties in getting loans from public sector banks as well as private sector banks. To get a loan for a startup, one can contact Microfinance Institutions (MFIs) and Non-banking Financial Companies (NBFCs). However, the interest rates will be on a higher side in contrast to PSU banks.