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Tag: government scheme for startup

  • What Is Multiplier Grants Scheme? | Government’s Scheme for Supporting Startups in India

    India is a hub of untapped potential. It is also a land of commercial possibilities that can be realized with the correct tools. The Indian government realizes this talent pool and has taken various initiatives to tap, encourage and help this talent in a bid to build a strong economy.

    The government has created 50 startup programs to aid the country’s startup mission and address young entrepreneurs and small and medium enterprises.

    The Department of Electronics and Information Technology (DeitY) has established the Multiplier Grants Scheme in an effort to bridge the gap between commercialization and R&D.

    What Is Multiplier Grants Scheme?
    MGS Objectives
    MGS Implementation Process
    Who is Eligible for Multiplier Grants Scheme?
    Benefits of Multiplier Grants Scheme
    MGS and Its Terms and Conditions

    Best 10 Government Schemes for Startups in India

    What Is Multiplier Grants Scheme?

    The Multiplier Grants Scheme (MGS) intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level. The attraction of participation comes in the form of the government contributing the same amount as given by the industry if the proposal is accepted. However, a combined proposal made by industry and R&D institutions has to be submitted for approval of financial assistance to the government.

    Value of Startup Funding Across India from 2015 to 2021
    Value of Startup Funding Across India from 2015 to 2021

    MGS Objectives

    There are a number of things that the Indian Government hopes to accomplish through this scheme:

    • Establish, nurture and deepen the ties between research institutes and the industry.
    • Encourage and focus on industry-oriented research and development to boost trade.
    • Speed up the development of indigenous goods and services.
    • Commercialization and Globalisation through collaborative work.

    MGS Implementation Process

    To make it effective and efficient MGS has made a few suggestions about its implementation process:

    • Academic or R&D institutions should submit project proposals in collaboration with industry or industry consortiums. The suggestions for such collaborative research should come from the industry or industry consortium.
    • Depending on the availability of funds, proposals could be invited for up to 3 times in a year.
    • A working group within the department will examine and evaluate the proposal and may invite additional domain experts depending on what idea is under consideration. This group will make a recommendation for appropriate budgetary support.
    • The project’s financial and technical progress will be reviewed regularly by a Project Review and Steering Group (PRSG). PRSG will also have an industry partner on the panel. This group may also recommend grant release, continuity, extension, short-closure or even a new project.
    • Specified terms and conditions will apply to the proposed scheme’s grants.

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    Who is Eligible for Multiplier Grants Scheme?

    • The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to DeitY under the MGS program.
    • The application of such a proposal must be for E&IT innovation in modules, products, packages or services. Due consideration and evaluation will also be given to projects that include prototypes and packaging for commercialization.
    • The proposal’s focus must be the primary business of the industry.
    • The chosen institute must have the necessary skills and experience in the suggested field of research. The factors to be taken under consideration are:
    1. The number of professional courses offered by the institution
    2. History of prior research work and projects completed
    3. Number of papers published
    4. Any industry collaborations
    5. Institute’s existence for at least 5 years
    • The project submission should include market research on modules, products, packages and services to be created. The innovation’s output should be technically and commercially viable.
    • Some necessities that are must-haves for the industry are:
    1. Staff and technology absorption capacity.
    2. Existing or detailed plans for procurement of Infrastructure for in-house production.

    Benefits of Multiplier Grants Scheme

    The Government of India has initiated this scheme with expectations to derive benefits that will positively affect the growth of the nation and contribute immensely to the economic development of the country.

    • All projects undertaken will be focused towards market-oriented R&D.
    • Improvement in the relevance of education and training.
    • Industry will be aided towards mobilization of technology and building skills.
    • Indigenous new products will be cost-competitive and able to respond quickly to market demands.
    • Incentives and royalty sharing will contribute towards recruiting and retaining qualified personnel in academia and R&D labs.
    • Close collaboration between industry, academia and R&D may contribute to a rise in the number of entrepreneurs.

    MGS and Its Terms and Conditions

    Largely, the MGS’s focus is to improve the entrepreneurial scene in the country and to boost the country’s economy through collaborative innovation and growth. There are other terms and conditions of the scheme that ensure that its benefits and resources give the country an edge on the international stage.

    • Greater support will be given to innovations that are a breakthrough rather than incremental.
    • The innovations generated through these projects must be kept in India by the corporations.
    • The IPR must be located in India so that the country has access and control over it in the event of a national emergency.

    Conclusion

    With this level of support and encouragement from the Indian Government through the MGS Scheme, progress and growth are on a fast track and new innovations are a near-future reality. The new and budding entrepreneurs have a base support system to build innovation-led businesses that are technologically and commercially viable.

    FAQs

    What is Multiplier Grants Scheme?

    Multiplier Grant Scheme intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level.

    How do I apply for a Multiplier Grants Scheme?

    The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to the Department of Electronics and Information Technology under the MGS program.

    What are the government schemes for startups?

    Some of the most popular government schemes for startups are:

    • Pradhan Mantri Mudra Yojana (PMMY)
    • Multiplier Grants Scheme (MGS)
    • SAMRIDH Scheme
    • Startup India Seed Fund
    • The Venture Capital Assistance Scheme (VCA)
    • Stand Up India Scheme
    • High Risk – High Reward Research

  • Everything about Mudra Loans | How to Apply for Mudra Loan?

    The increase of startups and the interest of young entrepreneurs to start their businesses has led to many schemes introduced by the Government of the country. Several opportunities are given, to pursue the dream of being an entrepreneur to the interested people. Out of so many schemes, one of them is Mudra Loan.

    Mudra loan or the Pradhan Mantri Mudra Yojana (PMMY) scheme was launched in 2015 by the Prime Minister of India. MUDRA, which is short for Micro Units Development and Refinance Agency, provides loans up to Rs. 10 Lakh to the non-corporate and non-farming small and micro-enterprises. This also includes enterprises involving allied agricultural activities.

    It is known globally that Indians have a great creative and innovative mind, however the majority of them are unable to convert these ideas into profitable businesses due to financial reasons. This is common in almost all the different sections of society. PMMY was mainly to encourage everyone to try and implement their ideas.

    What is Mudra Loan?

    In 2013, it was found that there were around 5.77 crore micro and small enterprises in India and about 60% of these were owned by backward classes. These units cannot be covered by the formal loan lending sectors. This means that they might have to depend on informal lending sectors which can lead to a lot of issues or manage with their own funds. The Mudra Loan scheme is to support young, budding entrepreneurs and also existing businesses to expand and experiment with their ideas. This is much more secure and the rate of interest is not very high.

    The Schemes Under Mudra Loans

    Mudra loans have several schemes under them and they are:

    Shishu

    This is when the amount required by the borrower is less than INR 50,000. This is usually given to entrepreneurs in their early stages. This is basically a working capital term loan. There are a few things that are checked in this case. The checklist here includes the Machinery quotations and the details. The machine details have to be provided perfectly well. The borrower should also provide all the details that the banks ask for. This might include the details of the supplier. This is basically for startups.

    Kishor

    This covers loans from INR 50,001 to 5,00,000. This is not for beginners but already established businesses when they want to expand their business operations. In this case, they might require tax returns. The lender needs to know all the details of the company. It is also required to submit the balance sheet for the last 2 years, the estimated balance sheet for 1 year, MOA and AOA, and the sales made before the company applied for the loan in the Financial year.

    Tarun

    This is another scheme that covers loans from INR 5,00,001 to 10,00,000. This is when the business owner meets certain preset conditions. The required documents and details are similar to that of Kishor but there are a few other proofs that are to be included. This includes the caste certificate, Address proof, Identity proof, and other essential documents. The loans are approved only if all the documents are perfect and none of the documents is missing or faked.

    Who Can Borrow Mudra Loans?

    Mudra Loan Schemes encourage women
    Mudra Loan Schemes encourage women

    There are various enterprises that can borrow under the Mudra loans scheme. This includes individual business entities, partnership firms, public companies, private companies, Proprietary firms and so on. Also, to be eligible to borrow this, the applicant should have a proper credit track record. The proposed activity is properly studied and based on that, the lender might ask for educational qualifications and other basic requirements.

    The borrower will be eligible if he submits all the documents and has all the basic requirements listed by this scheme.

    Sectors Covered Under Mudra Loans

    • Food product sectors
    • Textile
    • Transport and transport activities
    • Community, personal service and social activities.
    • Activities allied to farming and agriculture.
    • Finance for the equipment in micro-units.
    • Business loans for shopkeepers.

    Features and Benefits of Mudra Loans

    The key benefit of this scheme for borrowers is that they do not need to show collateral or security. Also, there is no processing fee for this. Also, there is no minimum amount that you need to borrow. It can be used for various purposes like expansion, modernization, machine purchase, renovation, etc. There is no processing fee involved. Only in the case of the Tarun loan, 0.5% of the loan amount is charged as the processing fee. Mudra loan can also be availed online and the repayment period lies between 3 and 5 years, depending on various factors. The interest percentage for Shishu is nil and for the other 2, it is 10%. Also, the age of the borrower must be above 18 and below 65 years to avail of Mudra loans.

    Steps To Apply For Mudra Loans

    It is very easy to apply for Mudra loans. You have to have all the necessary documents.

    • Step 1: Check what are the documents necessary for the amount you need and keep all the documents ready.
    • Step 2: Approach a financial institution. This loan is available in almost all renowned financial institutions. You can approach any one of them or even check their website out for details. Make sure to check if the financial institution is registered under the Mudra scheme.
    • Step 3: The next step is to fill out the application form carefully. Almost all the details like personal and business details. The documents have to be attached. Mention the amount you might need. There are different forms for Shishu, Kishore and Tarun. Choose the right form and keep the documents in hand while filling out the form.
    • Step 4: Wait for approval. Once the loan is approved, you will receive the Mudra card. You can use the card to draw the money you need.

    This is the set process in almost all approved financial institutions. It is safe and secure.

    Conclusion

    Small businesses and entrepreneurs can go for a Mudra loan as it is easy to get approved and also it will help them get the first capital for their company. Since there is no collateral or security required, it can be availed by anyone satisfying the criteria. This serves as an encouragement for youngsters with an idea to get basic funding for their business idea and hence they will be able to put their idea into practice. This is available in various institutions and also can be dealt with online. This makes the entire process much easier than it is. The only major criteria are that all the documents to be submitted must be perfect and the borrower should be within the specified age limit.

    FAQs

    Who introduced Mudra Loan?

    Prime Minister Narendra Modi introduced the Mudra loan.

    When was Mudra Yojana announced?

    The Mudra Yojana was announced on 8th April 2015.

    How much loan is provided by Mudra Yojana?

    Mudra Yojana provides loans of up to INR 10 Lakhs to borrowers.

  • Top 9 Schemes Financing Women Entrepreneurs in India to Fly High and Shape Up their Dream

    India has been the victim of patriarchy for ages and this has led to the downfall in women-specific matters. Earlier, various social taboos restricted women from studying and working. Entrepreneurship was something out of reach for them. But in recent decades, things have changed a lot.

    Women have now achieved a lot. Not a single sector is being left where they are not successful with flying colours. Despite restrictions and lack of social support, women’s entrepreneurship is rising. As a result, the government has taken steps to boost women to come forward and give way to their dreams and career.

    Gone are the days when lack of capital was a barrier for women to start a business. Several schemes and benefits are being introduced by big organizations for women’s development. Also, this development is heading towards the economic growth of the nation and it is an inspiration for many.

    A report by TOI states that more than 1 lakh projects are running under the Prime Minister’s Employment Generation Program since its start. Well, if you are a woman and have a top-notch business plan, you are in the right place. Read out the article below to find out which scheme suits you the best.

    Annapurna Scheme
    Udyogini Scheme
    Stree Shakti Scheme
    Bharatiya Mahila Bank Business Loan
    Cent Kalyani Scheme
    Mudra Yojana Scheme
    Dena Shakti Scheme
    Mahila Udyam Nidhi Scheme
    TREAD Scheme

    Annapurna Scheme

    The State Bank of Mysore and Bharatiya Mahila Bank is offering Annapurna Scheme to women interested in starting a food catering business. This government launched scheme provides a loan of up to Rs 50,000. Further, the loan is being used as working capital to buy products such as utensils and kitchen equipment.

    Moreover, a guarantor and collateral in the form of the asset are needed to avail this scheme. The best part of this scheme is that you can repay the amount within three years.

    Also, women who avail of the loan get a grace period of one month before the repayment process begins. But, the interest rates depend on the market rate. The lender gets the benefit by not paying the EMI for the first month.

    Udyogini Scheme

    Udyogini scheme was started by Women Development Corporation to provide loans to women who want to start their small ventures. In this scheme, any woman who wants to start a business categorized under 88 small-scale industries will get a loan of up to Rs 3 lakhs.

    The industries include fisheries, groceries, trailering, poultry, dairy, bakeries, etc. Apart from that, if someone starts a business in the agricultural sector, they will be provided with an interest-free loan.

    Besides, the government also proposes to give up to 30% subsidy on loans to make the repayment affordable for women entrepreneurs. Moreover, the scheme also offers training to women about business planning, pricing, and feasibility. The scheme helps micro industries to grow and support underprivileged women from rural areas to earn their livelihood.

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    Stree Shakti Scheme

    Started by various branches of SBI, this scheme is beneficial to women entrepreneurs associated with the Entrepreneurship Development Program (EDP) run by the state agency.

    Women with majority ownership in small businesses are eligible for this program. Here, women can avail of a 0.5% concession on loans above Rs 2 lakh, and no security is needed when the loan amount is up to Rs 5 lakhs. Also, you can avail of a loan of up to Rs 50 lakhs.

    Bharatiya Mahila Bank Business Loan

    The scheme, implemented by Bhartiya Mahila Bank merged with the State Bank of India. It is a boon for women who want to run their businesses in the retail sector. The scheme allows for a loan of up to Rs 20 crore for a manufacturing enterprise.

    Also, a concession to the extent of 0.25% on the interest rate ranges higher starting from 10.15%. Besides, the collateral-free loan is being offered up to Rs 1 crore under CGTMSE (Credit Guarantee Fund Trust For Micro and Small Enterprises) cover.

    Cent Kalyani Scheme

    The Cent Kalyani scheme was started by the Central Bank of India. It offers loans to women involved in Micro, Small, and Medium Enterprises, retail trading, or any agricultural practices.

    Here, a loan of up to Rs 1 crore is offered to women entrepreneurs without any collateral or guarantor. The interest rate in this scheme depends on the market rate. Additionally, it requires no processing fee and the tenure is of up to 7 years.

    Mudra Yojana Scheme

    The Mudra Yojana Scheme or the Pradhan Mantri Mudra Yojana (PMMY) scheme was launched in 2015 by the government of India in order to help the startups and entrepreneurs in India. A “government scheme for small units” is also a great initiative for the women entrepreneurs and entrepreneurs-to-be who are willing to start with small enterprises like beauty parlors, tailoring stations, tuitions etc.

    With the Mudra scheme, loans worth Rs 50,000 – Rs 50 lakhs can be availed of by women. Here, they should only have to provide collateral and guarantors in case the loan amount they request is over Rs 10 lakhs. The 3 plans that are under this scheme are:

    • Shishu plan – This extends loans up to Rs 50,000 for new businesses.
    • Kishor plan – This offers individuals and businesses loans that range between Rs 50,000 and Rs 5 lakh for the enterprises that are already established.
    • Tarun plan – This extends loans between Rs 5 lakh and Rs 10 lakh for the expansion of businesses.

    Dena Shakti Scheme

    Dena Shakti Scheme is one of the schemes offered by the Dena Bank, which empowers women entrepreneurs, where the women who are employed in the fields of agriculture, retail, manufacturing, are small enterprises or micro-credit organizations are hugely benefitted. The Dena Shakti Scheme offers women entrepreneurs up to Rs 20 lakhs for the women employed in the above-mentioned categories, whereas it extends loans up to Rs 50,000 in the micro-credit category.

    Mahila Udyam Nidhi Scheme

    Mahila Udyam Nidhi Scheme is another scheme centered on the women entrepreneurs of India. Launched under the Small Industries Development Bank of India (SIDBI), this scheme offers the women entrepreneurs of the country financial aid up to Rs 10 lakhs, which they can use to set up small-scale ventures. The upgrading and modernisation of the existing products are another vertical that is greatly empowered by the Mahila Udyam Nidhi scheme. The funds received through this scheme allow the women business leaders to have a time span of 10 years within which they need to repay the funds they receive, where there is a 5-year moratorium period.  

    The TREAD Scheme, expanded to Trade Related Entrepreneurship Assistance and Development, is a government of India scheme that is focused on women who lack access to bank credit. Providing for business projects, conducting training and counselling sessions are some of the main focuses of the TREAD scheme. The scheme provides up to 30% of the total project cost via the government grant as per the assessment of the lending organisations, while the remaining 70% would be financed by the lending institutions themselves. The TREAD scheme offers a maximum of Rs 5 lakh per project.

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    Conclusion

    With the onset of women entrepreneurship in India and its fast-rising growth, government and non-government institutions are keen on supporting them. Fund generations and capital formation is now not a barrier anymore for women who either want to start a business as their dream project or want to earn their livelihood. The economy now needs contributions from women with the belief in their talent and hard work.

    If you are one of them who want to start a business at an early age as your dream career or think of supporting your family, go on to avail the benefits of the schemes and funds by several institutions.

    Now no more struggling to collect funds and no more arguments with family. Your power is within you. You need to wake up and make yourself aware of the benefits that revolve around you and are meant for you.

    FAQ

    Which scheme is meant for women entrepreneurs?

    Annapurna Scheme, Udyogini Scheme, Stree Shakti Scheme, and Cent Kalyani Scheme are some of the schemes that are boosting women entrepreneurs.

    How do I become a female entrepreneur?

    Becoming a female entrepreneur is not easy still in this male-dominated society. Having a clear vision, identifying market opportunities duly, learning business skills, networking, planning finances are some of the fronts that a woman entrepreneur should develop on.

    Who is the most famous female entrepreneurs?

    Indra Nooyi, Vandana Luthra, Falguni Nayar, Kiran Mazumdar Shaw are some of the most famous entrepreneurs in India.