Eligibility criterion to qualify for Start-Up India loan

The Start-Up India initiative was launched by the Indian Government in 2016 with an aim to promote entrepreneurship and start-ups. It eventually helped in the economic growth of the nation by generating massive employment.

The scheme provides start-up business loan to entrepreneurs through the SIDBI Stand-Up India portal, Lead District Manager, and scheduled commercial financial institutions. Stand-Up India initiative resulted in an increase in the demand for business loans to 10.4% YoY in the previous fiscal. 

What is Start-Up India scheme?

The Start-Up India scheme aims to provide financial aid to entrepreneurs and help them become a successful small business owner. This initiative provides several benefits to those seeking to set-up a greenfield business. Women, SC/ST, and backward class individuals will receive priority from this scheme. 

Enrolling to this scheme could make you eligible to avail funds from one of the easiest sources of business finance. Besides, you can also avail the opportunity to network with like-minded people and collaborate with their businesses as well. The benefits are multiple and your business will get the required recognition to thrive in the current competitive market place.

Who are eligible to avail this loan?

To be eligible for this start-up business loan, your firm is required to meet the below-mentioned criteria. They are as follows:

• Registration: The business should be either private limited company or a partnership firm and must be registered under the Company’s Act.

• Years of operation: The business must not be functioning for more than 5 years of its inception.

• Annual turnover: A business should have a particular turnover in a financial year to be eligible for such business loans. Usually, a turnover below Rs. 25 Crore is termed eligible for this loan scheme. 

• Innovative: The start-up should bring out something innovative. The Government will prefer to fund a start-up which provides new product or service to the end-users.

• Approval from DIPP: The approval from the Inter-Ministerial Board is a must to be eligible for this loan scheme. 

Therefore, the various sources of business finance have witnessed a new addition with the launching of such a scheme, which is likely to benefit the rising businesses. With such loans, business owners will not have to fall back on the financial aid anymore, which they were lacking. It will also help them to create a growth plan for their business.

Alternately, you can also avail business loans from well-known financial institutions at attractive business loan interest rates. Bajaj Finserv offers business loans amounting up to Rs. 30 Lakh within just 24 hours to business owners. 

Hence, with the start-up India scheme, it has become exceptionally easier to avail startup business loans for small and local firms. Owing to the requirement of minimum eligibility criteria, the government has been successful in implementing the scheme by attracting as many borrowers as the number of budding start-ups in the country.

About This Author

Aditi Ahuja Aditi Ahuja is a noted financial consultant and adviser. Joined: August 23rd, 2018