5 Government schemes for Business in India
Planning to start your dream business in india? Need Government support to start your business? What type of government schemes are available to support you? These are the most common questions you always think about before starting your startup.
Explore these 5 Government schemes for Business that everyone should Know
Whether you’re a homemaker with a vision, a graduate with an innovative idea, or someone looking for a fresh start, these schemes can provide the financial and infrastructural support you need.
1- Pradhan Mantri Mudra Yojana (PMMY)
This scheme has been a lifeline for countless entrepreneurs. For instance, Rajiv Malhotra, a small Kirana store owner in Uttar Pradesh, expanded his business using a ₹1.5 lakh loan under the Kishor category.
Type of Loan
- Shishu Loan: For startups needing funding up to ₹50,000.
- Kishor Loan: For growing businesses (₹50,001–₹5,00,000).
- Tarun Loan: For established businesses needing ₹5,00,001 to ₹10,00,000.
Documents Required:
- Identity proof (Aadhar Card, PAN Card).
- Address proof.
- Business registration certificate.
- Bank statements (last six months).
- Quotation for machinery or equipment (if applicable).
Eligibility Criteria:
- Any Indian citizen with a viable business plan.
- Non-farm enterprises engaged in trading, manufacturing, or service sectors.
- Maximum turnover: ₹1 crore.
Benefits:
- Collateral-free loans.
- Easy repayment terms.
- Support for small businesses and startups.
2- Stand-Up India: Encouraging Inclusivity
Empowering SC/ST individuals and women, this scheme fosters diversity in entrepreneurship.
Key Features:
- Loan Amount: ₹10 lakh to ₹1 crore.
- Eligibility: SC/ST or women entrepreneurs, with at least 51% ownership.
Documents Required:
- SC/ST or caste certificate (if applicable).
- Business plan.
- Address proof and identity proof.
- Bank account details.
- Projected balance sheet for three years.
Benefits:
- RuPay debit card for digital transactions.
- Mentorship and skill development programs.
- Encourages underrepresented groups in entrepreneurship.
3- Credit Guarantee Scheme for Startups (CGSS)
This scheme supports startups recognized by DPIIT (Department for Promotion of Industry and Internal Trade) by providing up to ₹10 crore as credit guarantees. It addresses funding gaps by offering collateral-free loans.
Documents Required:
- DPIIT recognition certificate.
- Financial statements (if available).
- Business proposal.
- Loan application.
- GST registration certificate.
Eligibility Criteria:
- DPIIT-registered startups.
- Turnover less than ₹25 crore.
- The business is in line with Startup India eligibility guidelines.
Benefits:
- Multiple loan guarantees: Transaction-based or umbrella-based.
- Encourages innovation by reducing financial risk.
4- Startup India Initiative
The Startup India Initiative focuses on promoting new and innovative ideas. This program offers tax exemptions, funding, and mentorship to budding entrepreneurs.
Documents Required:
- Startup registration certificate.
- Proof of innovative idea (pitch deck or project report).
- PAN and Aadhaar of founders.
- Bank account details.
Eligibility Criteria:
- DPIIT-recognized startups.
- Less than 10 years since incorporation.
- Turnover under ₹100 crore.
- Businesses must be innovative or contribute to employment generation.
Benefits:
- Tax Exemptions: No income tax on profits for three years.
- Funding Opportunities: Access to the Fund of Funds.
- IPR Support: Subsidized patent application fees.
- Government Tenders: Relaxed norms for startups.
5 – Digital India Initiative
The Digital India Initiative strengthens the country’s digital infrastructure, helping startups thrive globally. This program supports tech-driven businesses and encourages cashless transactions.
Benefits for Entrepreneurs:
- Online business registrations and compliance.
- Digital payment systems and low-cost e-commerce solutions.
- Access to digital marketing tools and platforms.
How to Maximize These Schemes?
To leverage these schemes effectively:
- Understand Your Needs: Identify which scheme aligns with your business requirements.
- Prepare Documents: Keep all necessary documents ready to avoid delays.
- Seek Professional Help: Hire consultants or mentors for application guidance.
- Focus on Innovation: Ensure your business idea is unique and scalable.
- Stay Compliant: Meet all tax and legal obligations.
How does Digital India help startups?
Digital India strengthens digital infrastructure and provides tools for cashless transactions and online business management.
Disclaimer: The information provided in this post is for general informational purposes only and does not constitute professional advice. Please consult a qualified professional before making any decisions based on this content.
