India is one of the nations which continue to promote and boost the entrepreneurial ideas and spirit. In a report by NASSCOM 2016, India retained the crown of the world’s third-largest Startup base. This is a testimony to the facts that ideas can fly high in the Indian startup the system and get up with socially important and technologically strong solutions for the country. This can be at a time when the Start-up scene across the planet is not in the best of the health. Let us see Government Loans for Small Business Startup in India
The Indian Government is practicing its best to encourage fresh ideas and it is supporting the entrepreneurs as well. An idea remains an approximation without the capital or financial backing, and the rest of this article will illustrate the ways in which an idea can find its direction.
Start-up in India
Start-up in India is a government movement organized by our Indian Government which aims at promoting bank finances and other private finances for start-up ventures and businesses to motivate entrepreneurship and to encourages the entrepreneurs who will ultimately contribute to the economy of India. A startup is an entity or company or a firm that is headquartered in India established less than 7 years ago and has an annual return which is less than 25cr rupees. Start-up India will also consider a business that works towards innovation, development and improvement of products and processes that are scalable and have a high potential to provide employment and jobs.
Top Schemes that are offered by the Indian Government
- The CGS Scheme
The Indian Government has launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises in order to render financial assistance to MSMEs with zero assistance. This scheme is valid for new participants as well as existing entrants units throughout the country. A campaign was established by the Ministry of MSME along with Small Industries Development Bank of India, known as Credit Guarantee Fund Trust for Micro and Small Enterprises in order to implement this scheme for MSMEs.
- Small Industries Development Bank of India Scheme
SIDBI established a small business funding schemes in 1990 which has gone quite popular and plays a crucial role in the promotion and development of small business units of the nation. Some of the popular schemes are:
- Mahila Udyam Nidhi (MUN)
- National Equity Fund, Scheme
- Scheme and Equipment Finance Scheme
- Indirect Assistance Scheme
- Promotional and Development Activities
- Direct Assistance Scheme
We all might know NABARD. This NABARD scheme was launched in order to promote and encourage the agriculture business enterprises in rural and semi-urban areas. Village-cottage industries are the top beneficiaries of NABARD, which completely aims at their financial assistance and a total support. The capital and the finances are shared between RBO and GOI which held Rs. 5,000 crores in March 2015, out of which Rs. 4980 crores were controlled by the Government of India.
The above-mentioned business and entrepreneurial loan schemes by the government allow MSMEs to finance and support their day-to-day business i.e. operational expenses.