Government schemes for startups in India are designed to reduce financial pressure, improve access to funding, and support early-stage growth. However, many founders miss out simply due to lack of clarity around eligibility, benefits, and application processes.
This blog covers the top government schemes for startups in India, including eligibility criteria, benefits, funding limits, and application process,
1. Startup India Scheme (DPIIT Recognition)
The Startup India Scheme is the foundation of all government schemes for startups in India. Without DPIIT recognition, startups cannot access most benefits.
Startup India Eligibility Criteria:
- Registered as Private Limited Company, LLP, or Partnership
- Startup age not exceeding 10 years
- Annual turnover below ₹100 crore
- Working towards innovation, scalability, or employment generation
Key Benefits:
- Income tax exemption for 3 consecutive years
- Self-certification under labour and environmental laws
- Faster patent and trademark registration with up to 80% rebate
- Easier exit and winding-up process
2. Startup India Seed Fund Scheme (SISFS)
The Startup India Seed Fund Scheme supports idea-stage startups that are not yet eligible for traditional loans.
Eligibility Criteria:
- DPIIT-recognized startup
- Incorporated within the last 2 years
- No prior funding above ₹10 lakh
Funding Support:
- Up to ₹20 lakh for prototype and validation
- Up to ₹50 lakh for market entry and commercialization
3. Fund of Funds for Startups (FFS)
The Fund of Funds for Startups provides indirect equity funding through venture capital funds managed by SIDBI.
Eligibility:
- DPIIT-recognized startups
- Funded through SEBI-registered AIFs supported by SIDBI
Benefits:
- Improved access to venture capital
- Stronger funding ecosystem for startups in India
4. Pradhan Mantri Mudra Yojana (PMMY)
Among the most searched government loan schemes for startups in India, the Mudra Loan Scheme is ideal for small and micro startups.
Mudra Loan Eligibility:
- Non-corporate startup or small business
- Manufacturing, trading, or service activity
Loan Limits:
- Shishu: Up to ₹50,000
- Kishore: Up to ₹5 lakh
- Tarun: Up to ₹10 lakh
Key Advantage:
- No collateral required
5. Credit Guarantee Scheme for Startups (CGSS)
The Credit Guarantee Scheme for Startups enables collateral-free startup loans by reducing lender risk.
Eligibility Criteria:
- DPIIT-recognized startup
- Loan amount up to ₹10 crore
- Startup should not be a defaulter
Benefits:
- Higher loan approval chances
- Better interest terms from banks and NBFCs
6. Stand-Up India Scheme
The Stand-Up India Scheme supports inclusive entrepreneurship under government schemes for startups in India.
Eligibility:
- Woman entrepreneur or SC/ST founder
- Greenfield enterprise
Loan Amount:
- ₹10 lakh to ₹1 crore
7. Atal Innovation Mission (AIM)
The Atal Innovation Mission promotes innovation-driven startups through incubation and mentoring.
Benefits:
- Access to incubation centres
- Seed funding support
- Industry mentorship
8. SAMRIDH Scheme for Startups
The SAMRIDH Scheme focuses on accelerating software and technology startups in India.
Eligibility:
- Tech or software-based startup
- Growth-stage company
Funding Support:
- Up to ₹40 lakh
Common Eligibility Requirements for Government Startup Schemes
Most government schemes for startups in India require:
- DPIIT startup recognition
- Valid business registration
- Business plan and financial projections
- Statutory compliance and filings
How to Apply for Government Schemes for Startups in India
- Register on the Startup India portal
- Obtain DPIIT recognition
- Prepare pitch deck and financial documents
- Apply through scheme-specific portals or partner institutions
Explore Ashwini Finance SME Loan Options
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- Flexible repayment terms
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Ashwini Finance complements government schemes by helping businesses bridge funding gaps when traditional or government-backed options may take time.
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Trusted Resources for Startup Schemes
For official and updated information on government schemes for startups in India, you may also refer to:
- Startup India (Official Government Portal) – https://www.startupindia.gov.in/
- Ministry of MSME, Government of India – https://msme.gov.in/
FAQs: Government Schemes for Startups in India
Q1. Are government schemes for startups in India available for new businesses?
Yes, schemes like Startup India Seed Fund Scheme and Mudra loans support early-stage startups.
Q2. Is DPIIT recognition mandatory for startup schemes?
Yes, DPIIT recognition is required for most government schemes for startups in India.
Q3. Can startups apply for multiple government schemes?
Yes, startups can apply for multiple schemes if eligibility criteria are met.
This content is for informational purposes. Loan eligibility and approval are subject to internal assessment and applicable regulations.