Eligibility Criteria For Startup Government Schemes: Key Requirements
September 26, 2023
Never let a budding idea be just that, an idea. Materialise it with the help of special government schemes that offer you the required funding to fulfil your entrepreneurial dreams. Expand your small firm and let it chart new heights with some additional funds which is so convenient and easy to get. Want to know how? Well, here are some startup government schemes you can opt for along with their eligibility criteria.
Bank Credit Facilitation Scheme
As part of the Bank Credit Facilitation scheme, the National Small Industries Corporation (NSIC) looks to provide credit facilities to MSMEs. The NSIC has signed a Memorandum of Understanding (MoU) with multiple private-sector banks and nationalised financial institutions for this purpose. Thus, many prominent financial institutions like Axis Bank, Kotak Mahindra Bank, YES BANK, Federal Bank, and so forth, provide loans to MSMEs under this scheme.
All registered micro, small, and medium firms are eligible to get a loan under the Bank Credit Facilitation Scheme. The company should have its ID recognised and registered with the government to be eligible for this scheme. It is also essential to provide the required documents like identity proof, residence proof, business proof, income tax filings of the last 2 years and so on at the time of applying for the scheme.
Pradhan Mantri MUDRA Yojana (PMMY)
This startup government scheme, first launched in April 2015, offers quick loans of up to ₹10 Lakhs to non-farm and non-corporate SMEs. These credits are provided by NBFCs, Small Finance Banks, Commercial Banks and so on. The scheme offers 3 different variants of loans called Tarun (₹5 Lakhs to ₹10 Lakhs), Kishore (₹50,000 to ₹5 Lakhs), and Shishu (up to ₹50,000).
To be eligible for this scheme, the applicant must be between 18 to 65 years of age and a citizen of India with no criminal records. They should not have any deferred or pending payments with any bank. All enterprises that do not engage in the farming business and are instead involved in the trading, manufacturing, and services sectors can get a loan under this programme.
Stand Up India Scheme
The Stand Up India scheme looks to empower the Scheduled Caste, Scheduled Tribe, and Women entrepreneurs of the country. People falling under these categories should have at least a 51% stakeholding in the firm for which the loan is being taken. They can borrow ₹10 Lakhs to ₹1 Crore and use it to fulfil any business-related requirements.
To be further eligible for this scheme, the applicant should be over 18 years old. The loan is available only for greenfield projects, where the firm is involved in the trading, agri-allied, services, or manufacturing sector. The borrower should also not be in default with any bank.
MSME Market Development Assistance (MDA)
The MSME Market Development Assistance (MDA) scheme is aimed at helping small firms reach their full potential by collaborating internationally to conduct business. It offers funding of up to 75% of the transportation fare for participation by entrepreneurs in overseas fairs and trade delegations. Furthermore, it has a provision of financing up to 25% of the publicity material production and up to ₹2 Lakhs of sector-specific studies. The scheme also funds up to 50% for contesting anti-dumping cases for up to ₹1 Lakh.
Individual MSMEs or associations, both can apply to receive funding under this programme. Additionally, to be eligible the firm needs to be registered under relevant acts like the Societies Act, Companies Act, etc. The applicant will be required to submit 3 years of audited financial accounts of the firm when applying for the scheme. Also, the events that the company looks to take part in must be from the list of approved events, exhibitions, and buyer-seller meets, provided by the Ministry of MSME every year.
Credit Guarantee Funds Trust For MSE (CGTMSE) Scheme
Under this government scheme, MSEs can benefit from a credit of up to ₹5 Crores. They will also be provided with a credit guarantee cover, amounting to 75% to 80% of the borrowed money under this scheme. However, if the firm is engaged in retail activity, only 50% coverage will be offered.
In order to be eligible to apply for this scheme, the firm must be involved in the manufacturing, services, or retail sector. Self Help Groups (SHG), training and educational institutions, and agriculture-based firms are not eligible to get credit and coverage under this scheme.
The various startup government schemes mentioned above can help you solve the financing issues for your firm. Make sure to check the documents you may be required to submit at the time of application for any of these programs. Check to see which of these schemes is your firm eligible to apply for and if it caters to your needs. Get started today and grow your business to new heights!
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