Top 4 Startup Loans in India 2024

India has always been a place of opportunities. Right from Multinational Companies (MNCs) and other big corporates setting up businesses here, various Indians are working toward a future of innovation and development. And how are they doing this exactly? Yes, you guessed it right- startups.

Brilliant and hard-working people today are working towards helping the country cross milestones with innovative and flourishing startups. The government of India has been recognising the value startups add to the overall development of India and are encouraging the same with various government-funded loan schemes.

The Small Industries Development Bank of India (SIDBI) has started sanctioning loans directly rather than directing it through banks.

Here is a list of top finance schemes for startups from the central government:

1. Sustainable Finance Scheme

The Sustainable Finance Scheme was launched by SIDBI for funding development projects that help in energy Efficiency and cleaner production. Development projects under green buildings, green microfinance and other renewable energy projects. The interest rate is based on the standard lending rate by the credit rating of MSMEs.

The objective of the scheme is mentioned below:

• Mini hydel power projects, solar power plants, wind energy generators, biomass gasifier plants, etc., will be funded.
• Original Equipment Manufacturer (OEM) producing energy-efficient and clean production equipment and is an MSME will be funded.
• Investments in waste management will be funded.

2. SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE)

This scheme is a major initiative by the government of India to help small businesses and encourage startups to partake in the Make in India campaign. This scheme aims at providing finance to startups within the MSME sector.

The features of the scheme are mentioned below:

• The scheme aims at providing finance to new enterprises in the Manufacturing and service sector.
• It is also available to small enterprises already established within the MSME sector.
• If you are a startup with proof of existence for 3 years, you can avail of the scheme.
• The maximum loan amount of the scheme is Rs. 25 lakhs.
• The repayment period is a maximum of 10 years including moratorium of up to 36 months.

3. Coir Udyami Yojana (CUY)

The Coir Udyami Yojana is a credit-linked subsidy scheme. It aims at helping entrepreneurs in setting-up coir manufacturing units. Startups looking forward to setting up coir fibre, yarn manufacturing units can avail this scheme.

Individuals, Non-Government Organisations (NGO), self-help groups, registered societies, charitable trusts, joint liability groups can avail the loan.

The features of the scheme are mentioned below:

• Startups can avail a loan up to Rs. 10 lakhs.
• The project scheme will include one working Capital cycle. This amount shall not exceed above 25% of the total project cost.
• The project will cover capital purchases, building, machinery expenses.
• The maximum repayment period is up to 7 years.

4. National Bank for Agriculture and Rural Development (NABARD)

The National Bank for Agriculture and Rural Development (NABARD) is a development bank in India. This aims at financing businesses for rural areas and their development. It also aims at providing financial assistance to kickstart development of Indian villages.

The Committee to Review Arrangements of Institutional Credit for Agriculture and Rural Development recommended the establishment of the development bank in 1982. Eventually, NABARD was set up.

The features of NABARD are mentioned below:

• To build an empower rural India toward development through finance, development and supervision.
• Preparing district level credit plans which will motivate the banking Industry.
• Supervising and working alongside Regional Rural Banks (RRBs) and Cooperative Banks along with other developing banking practices. These are also integrated with the Core Banking Solution (CBS) platform.
• Helping handicraft artisans to sell products. It also provides training and provides a marketing platform for such.
• Has helped establish the Kisan credit cards Scheme and RuPay Kisan Cards.

Conclusion

The government of India has brought about many such initiatives to fund the businesses of developing both urban and rural India. Rural India and its creative work have received global recognition with the help of such schemes. It has also helped the establishment of businesses in various countries around the world. Read all the terms and conditions laid down before applying for the scheme.