7 Government Scheme for Startup in India: Startup Scheme

Starting business in India is filled with enthusiastic, which make the country and business successful. But for many prospective entrepreneurs, the primary hurdle lies in securing the necessary funding. To facilitate such startups and small businesses, the Indian government has initiated various loan schemes and financial support.

These initiatives have been carefully crafted to offer financial aid to entrepreneurs at various stages of their business journey. The government Scheme for Startup in India and the elegibility criteria for getting loans are discussed in this blog.

What are Government Scheme for Startup in India?

Government Scheme for Startup in India are those schemes that aim to aid Indian startups with financial, infrastructural, and regulatory support across various sectors. Various details such as objectives, eligibility, and benefits are provided.

What are the eligibility criteria for the loan?

Eligibility criteria for the loan may vary depending on various schemes or certain programs. Although, here are some common eligibility factors that are frequently considered:

Loan eligibility criteria
  • Types of Business:
    • The nature of your business, such as whether it’s a micro, macro, or medium enterprise, and the sector it operates in, can impact eligibility.
  • Age of Business:
    • Certain programs may require that the startup falls within a specific age range, typically a limited number of years from its establishment.
  • Ownership:
    • Specific schemes may feature unique ownership requirements, such as being owned by women, individuals belonging to scheduled castes, scheduled tribes or other marginalized groups.
  • Credit Scores:
    • Your ability to manage credit and your capacity to repay will likely be evaluated, particularly for loans that demand collateral or guarantees.
  • Startup Certification:
    • For some schemes, you might need to obtain a startup certification from the Department for Promotion of industry and Internal Trade (DPIIT) under the Startup India initiative.

Before applying for a government startup loan, it’s advisable to visit the official website of the relevant government agency or financial institution offering the scheme, they will provide detailed information on eligibility criteria, required documentations, and the application process.

7 major government scheme for Startup in India

Major startup government schemes in India
  • Atal Innovation Mission
    • The Atal Innovation Mission (AIM), established in 2016 by the Government of India and under the purview of NITI Aayog, serves as the country’s flagship initiative aimed at fostering a culture of innovation and entrepreneurship.
    • To achieve this objective, AIM has adopted a comprehensive approach, focusing on instilling a problem-solving, innovative mindset in schools and nurturing an entrepreneurial ecosystem in universities, research institutions, and the private and MSME sectors.
    • All AIM initiatives are currently being meticulously monitored and managed through real-time Management Information Systems (MIS) and dynamic dashboards. Furthermore, third-party agencies are conducting regular program evaluations to ensure continuous enhancements and improvements.
  • Atmanirbhar Bharat Abhiyaan
    • The Atmanirbhar Bharat Abhiyaan, also known as the Self-reliant India campaign, represents the visionary agenda of the Hon’ble Prime Minister, Shri Narendra Modi. On May 12, 2020, the Prime Minister issued a resounding call to the nation, initiating the Atmanirbhar Bharat Abhiyaan and unveiling a special economic and comprehensive package worth INR 20 lakh crores, equivalent to 10% of India’s GDP, to combat the COVID-19 pandemic in the country.
    • The primary objective is to foster self-sufficiency and independence among the nation and its citizens in all aspects. He further delineated the five fundamental pillars of Aatma Nirbhar Bharat, namely the Economy, Infrastructure, System, Vibrant Demography, and Demand. The Finance Minister also introduced Government Reforms and Enablers across Seven Sectors as part of the Aatmanirbhar Bharat Abhiyaan.
    • The government implemented a series of bold reforms encompassing areas such as Agricultural Supply Chain, Rational Tax Systems, Simplified and Transparent Laws, Developing a Competent Workforce, and Strengthening the Financial System.
  • MUDRA Loan
    • MUDRA stands for Micro Units Development and Refinance Agency. This is a loan scheme initiated by government of India to provide financial support to micro and small business including startups. MUDRA loans aim to promote entrepreneurship and financial support to micro and small business.
    • The interest rates for MUDRA loans are generally competitive and affordable but may vary from one financial institution to another. Individuals, partnership firms, private limited companies, and other entities engaged in non-agricultural income-generating activities can apply for MUDRA loan.
  • Credit Guarantee Scheme
    • Credit Guarantee Schemes is a financial program offered by governments or financial institutions to promote access to credit for certain groups, such as small businesses, startups, or individuals who may not meet traditional lending criteria.
    • The main goal is to stimulate economic growth and support financial institutions. It facilitates access to affordable loans with lower interest rates for first generation entrepreneurs and small businesses.
    • The specific terms and conditions of Credit Guarantee Schemes can vary widely depending on the country and the organizations offering them.
  • Stand Up India Scheme
    • Stand Up India scheme is an Indian government initiative with the goal of fostering entrepreneurship and enhancing the economic empowerment of women, as well as individuals from the scheduled caste (SC) and scheduled tribe (ST) communities.
    • Under this scheme, individuals from these groups can access bank loans ranging from INR 10 lakhs and to INR 1 crore to establish new businesses in the manufacturing, services, or trading sectors.
    • The scheme encourages the establishment of new businesses by providing support for various aspects of business development. The primary aspect is to promote economic and self-reliance among these marginalized segments of society.
  • Market Development Assistance Scheme for MSMEs
    • The Market Development Assistance Scheme is a financial support program in India designed to assist Micro, Small, and Medium Enterprises (MSMEs) in promoting their products and services in international markets.
    • Under this scheme, eligible MSMEs receive financial assistance to participate in trade fairs, exhibitions, buyer-seller meets, and other export promotion activities.
    • The aim is to enhance the competitiveness of MSMEs in the global market by providing financial support for their marketing and promotional efforts.
  • National Bank for Agriculture and Rural Development
    • National Bank for Agriculture and Rural Development (NABARD), established in 1982, serves as the principal development financial institution in India, with a primary mission of promoting sustainable and equitable agriculture and rural development.
    • Through a variety of schemes and programs, NABARD offers financial and developmental assistance to rural and agricultural sectors, significantly contributing to the growth of the rural economy and enhancing financial inclusion in India.
    • If you have any particular queries about NABARD or require more details, please don’t hesitate to ask.

To sum it up, Government Scheme for Startup in India programs present promising opportunities for entrepreneurs to obtain the financial support necessary to initiate and expand their businesses. These initiatives are designed to encourage innovation, generate employment, and stimulate economic growth.


In conclusion, the Indian government understands the challenges faced by aspiring entrepreneurs and has implemented some government scheme for startup in India as an initiative. These schemes offer financial aid, mentorship, and other resources to startups at various stages of development.

By utilizing these resources, entrepreneurs can turn their innovative ideas into successful businesses, contributing to India’s economic growth and creating a more dynamic business landscape.

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1. Where can we enquire about government Scheme for Startup in India?

We can enquire about government loan schemes in various government websites like Startup India, MSME Ministery’s website, Small Industries Development Bank of India (SIDBI), State Government etc.

2. Where can MUDRA loans be useful?

These loans can be used for various purposes, including working capital, business expansion, purchasing equipment, and other business-related expenses.

3. Where can we obtain Startup certification?

You need to obtain a startup certification from the DPIIT under the Startup India initiative.

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