A Comprehensive Guide to Funding, Business Loan and Government Schemes India for Startups in 2024

Here is a comprehensive guide to startup funding. This will help you learn the following:

1.      5 Best Startup Business Loans India in 2024

2.      Improve your Chances on Getting a Business Loan

3.      Crucial Role of Government Initiatives 

4.      12 Leading Business Loan Schemes by Government of India in 2024

Funding is crucial for businesses, regardless of their size or stage. However, for young entrepreneurs, securing funding can be daunting amidst stiff competition. Yet, it’s a critical step towards realizing their vision. Success requires careful planning, market research, and resilience in the face of setbacks. While the journey may be challenging, it offers rewards like kick-starting operations, gaining credibility, and enabling growth. With creativity and determination, entrepreneurs can explore various funding options, from traditional investors to alternative avenues like crowdfunding. Ultimately, securing funding is not just about raising capital; it’s about building relationships and laying the groundwork for long-term success in the entrepreneurial landscape.

5 Best Startup Loans for Business Loan in 2024

The nation has the third-largest startup ecosystem in the world with a 108% increase in financing. In addition, factors including rising local market demand, advancing technology, and the complete ecosystem of shared co-working spaces contribute even more to it.

It is certain that the Indian startup industry is expanding significantly as a result of newly established companies receiving subsidies from the public and private sectors. In reality, a number of surveys have shown that the Indian startup market has a bright future.

1. Bajaj Finserv Business Loan

Bajaj finserv grants collateral-free loans to the new business setups. You can take a loan from the institution without keeping any assets as security upto 30 Lacs. There is no pressure of repayment and you can take your time for clearing the debt which is maximum up to 8 years. Bajaj finserv also provides online service which will be convenient for you to do the day-to-day transaction.

Eligibility

• The minimum age must be 22 years.
• The maximum age should not exceed more than 55 years.
• The company’s age should not be less than 3 years.
• Previous year Income Tax Return must be duly filled.
• A Chartered Accountant should audit the turnover of the business.

Features and Benefits of Collateral-Free Loan

• Collateral-Free
• Minimal Documentation
• Instant Processing
• High Value Loans
• Competitive and Flexible Interest Rates
• Flexible Repayment Options
• Online Account Management

2. Omozing.com

Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that can be tracked online.

5 Reasons to choose Omozing

1. Business Loans from INR 1 Lakh to INR 1 Crore

Business Loan amount ranges from INR 1 lakh to INR 1 crore. The Minimum and maximum repayment period ranges from 1 month to 48 months. 

2. Customized Tailor Options

• Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
• You have the freedom to utilize your loan anyway you want, whether for business or for immediate personal needs.
• Flexible repayment options depending on your specific cash flow and budget, as well as conditions that are beneficial to your position.

3. Ways to apply

You can apply for a business loan through us by 2 ways:

1. You can download our Mobile Application from Google app store.

2. Apply on portal using out Business Loan link

4. Prompt Loan Disbursal

An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.

Documents Required  

Types of Business Loan

3. SBI Simplified Small Business Loans

As the name suggests, the SBI business loans is a facility for the MSME business. The main aim of the SBI simplified small business loans are to help the small businesses in building their current assets and fixed assets. 

The minimum amount of loan that could be taken by the MSME businesses is Rs 10 Lakh, while the maximum amount for the same is Rs. 25 lakh. The interesting thing about the SBI simplified small business loans is that it requires 40% of the collateral security and the interest of it is linked to the MCLR (Marginal Cost of Funds based Lending Rate).

• The repayment period of SBI simplified small business loans are up to 60 months.
• Under SBI business loans, the loan is accessed based on the balance in the existing current account of the business.
• To be eligible for the business loan from SBI, there must be a 5-year existence in the business; the current account should at least be 2 years old.
• The Quantum of the loan (Min/Max) 10 times of average monthly balance in the current account in the previous 12 months subject to:

Min: Above Rs. 10 lacs.

Max: Less than Rs. 25 lacs.

As said above, it is best for the small MSME businesses that require banking facilities.

4. Lendingkart Business Loan

Lendingkart Finance Limited is a non-deposit taking NBFC providing working capital loans and business loans to SMEs across India. We give you access to capital in a completely online quick process with minimum documents and no collateral needed.

We hope to become your partner in laying a strong foundation for your businesses and helping it grow to its full potential.

Benefits of Business Loan by Lendingkart

Business loans from Lendingkart enable you to redraw your business strategies for matching today’s agile work environments. Here are the benefits of taking a business loan from an NBFC like Lendingkart.

• Faster processing:
• Preserving your ownership:
• Streamlines your cash flow:
• Improve your credit score:

Features of Lendingkart Business Loan        

1. Get Business Loans up to ₹ 2 Crore
2. Superfast Business Loan Processing
3. Fast Turnaround Time and Disbursals
4. No collateral required
5. Fair interest rates
6. Extended Loan Tenure
7. No Hidden Costs
8. Flexible Repayments

5. Fullerton Business Loan for Startup

Fullerton India understands that each business has unique financial needs. We take great pride and effort in ensuring that business owners and entrepreneurs meet their business goals by offering them the best possible financial solutions. We work hard in ensuring customer convenience so that you can focus on growing your business while leaving the financial aspects to us. To this end, we have designed an end to end digital process so that you can apply for a business loan from the convenience of your home, anytime and anywhere. 

Benefits

1. The lender offers four types of business loans: Business Loan, Business Loan for Women, Business Loan for Doctors, and Business Loan for Chartered Accountants. Each of these schemes has unique features and benefits.
2. Fullerton India’s Business Loan can be availed by business owners for any business funding requirements that may have risen.
3. The Business Loan for Women is a unique loan product that has specially been designed to cater to the financial needs of women entrepreneurs.
4. The Business Loan for Doctors is a loan scheme that is designed for doctors who are in need of funds to either open their own clinic or upgrade an existing clinic. You can also apply for this loan if you are looking to purchase new medical equipment, hire more staff, etc.
5. The lender’s Business Loan for Chartered Accountants is a loan scheme that can be availed by chartered accountants who require additional capital to expand their operations.
6. Applicants need not hypothecate their assets to avail this loan.
7. All loans will be disbursed in a timely manner.

Improve your chances of getting a Business Loan

• Make sure you improve your credit score.
• Choose wisely the lender from whom you wish to avail the business loan.
• Do not apply for multiple loans. If you have existing loans, make sure you clear the EMIs before applying for a business loan.
• Apply for a loan amount which you know you can repay on time.
• Keep an audited record of your financial statements.
• Make sure you check your credit score on a regular basis.

12 Leading Business Loan Schemes from Government of India 2024

The Crucial Role of Government Initiatives:

India’s entrepreneurial landscape has undergone significant transformation, largely propelled by government-backed schemes that nurture and sustain this evolution. These initiatives range from fostering innovation in rural industries to providing seed funding for startups, each meticulously crafted to address specific challenges encountered by entrepreneurs. By offering pathways to overcome funding constraints, navigate technological barriers, and access new markets, these schemes catalyze growth and enable businesses to reach unprecedented levels of success.

In the sections that follow, we’ll explore each government initiative in detail, uncovering its key features, benefits, and the opportunities it presents for MSEs and startups across the nation. Let’s embark on this enlightening journey and unlock the transformative potential of government-backed initiatives in India.

Here are the 12 leading Business Loan Schemes from Government of India:

1.      Single Point Registration Scheme (SPRS) for MSEs:

The Single Point Registration Scheme (SPRS), managed by the National Small Industries Corporation (NSIC), is a crucial initiative aimed at facilitating the participation of Micro and Small Enterprises (MSEs) in government procurement processes. This scheme simplifies the bidding process for MSEs by exempting them from the requirement of providing Earnest Money Deposit (EMD), which is typically a significant barrier for small-scale enterprises. Additionally, SPRS provides tender sets free of cost, waives security deposits up to a certain monetary limit, and offers tender documents at discounted prices. By reducing financial burdens and administrative hurdles, SPRS empowers MSEs to compete effectively in government contracts, thereby fostering their growth and sustainability.

Read more about SPRS scheme

2.      Rashtriya Krishi Vikas Yojana (RKVY) – RAFTAAR:

The Rashtriya Krishi Vikas Yojana (RKVY) – RAFTAAR is a flagship agricultural development scheme initiated by the Indian government to promote holistic growth in the agricultural sector. Originally launched in 2007 and revamped in 2017, RKVY – RAFTAAR focuses on enhancing agripreneurship and agribusiness through financial assistance, infrastructure development, and skill-building initiatives. The scheme aims to modernize agricultural practices, promote value addition, and create a conducive environment for agri-based startups. By providing subsidies for infrastructure development, training programs, and support for agri-processing industries, RKVY – RAFTAAR aims to catalyze innovation and entrepreneurship in the agricultural sector, thereby contributing to rural development and food security.

Read more about RKVY scheme

3.      ASPIRE: Promoting Innovation in Rural Industries:

The A Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship (ASPIRE) is a government initiative dedicated to fostering innovation and entrepreneurship in rural areas of India. Launched with the objective of creating employment opportunities and promoting economic development in rural regions, ASPIRE establishes incubation centers, technology networks, and skill development programs tailored to the needs of rural entrepreneurs. By providing access to finance, technology, and market linkages, ASPIRE aims to create a conducive ecosystem for startups in sectors such as agriculture, handicrafts, and rural manufacturing. Supported by organizations like the Small Industries Development Bank of India (SIDBI) and Khadi and Village Industries Commission (KVIC), ASPIRE plays a vital role in harnessing the entrepreneurial potential of rural India and driving inclusive growth.

Read more about ASPIRE scheme

4.      Multiplier Grants Scheme for R&D:

The Multiplier Grants Scheme for Research and Development (R&D) is an initiative implemented by the Department of Electronics and Information Technology (DeitY) to encourage collaborative R&D efforts between industries and academic institutions. Recognizing the importance of innovation in driving economic growth and competitiveness, this scheme provides financial support for research projects that have the potential for commercialization. Through funding for prototype development, technology transfer, and market validation, the scheme aims to bridge the gap between academia and industry, thereby fostering a culture of innovation and entrepreneurship. By incentivizing industry-oriented R&D initiatives, the Multiplier Grants Scheme aims to enhance the technological capabilities of Indian enterprises and promote the development of indigenous technologies.

Read more about MGS scheme

5.      Credit Guarantee Scheme for Startups (CGSS):

The Credit Guarantee Scheme for Startups (CGSS) is a financial support initiative aimed at addressing the funding challenges faced by early-stage startups in India. Managed by the National Credit Guarantee Trustee Company (NCGTC), this scheme provides collateral-free loans and credit guarantees to eligible startups, thereby enabling them to access timely finance without the need for traditional collateral. By covering up to 85% of the sanctioned credit facility, CGSS reduces the risk for lending institutions and encourages them to extend credit to startups with innovative business ideas. The scheme aims to foster a conducive environment for startup growth by alleviating the financial constraints faced by entrepreneurs and facilitating access to capital for business expansion and development.

Read more about CGSS scheme

6.      Zero Defect Zero Effect (ZED) Scheme:

The Zero Defect Zero Effect (ZED) Scheme is an initiative aimed at promoting quality manufacturing practices among Micro, Small, and Medium Enterprises (MSMEs) in India. Launched with the objective of enhancing the competitiveness of Indian products in the global market, ZED focuses on ensuring that products manufactured by MSMEs adhere to high-quality standards with zero defects. The scheme provides support to MSMEs in adopting world-class manufacturing processes, technologies, and quality control measures through capacity building, training programs, and financial assistance. By encouraging MSMEs to produce high-quality products that are environmentally sustainable (zero effect), ZED aims to enhance their market competitiveness, expand their customer base, and contribute to the growth of the Indian manufacturing sector.

Read more about ZED scheme

7.      SAMRIDH Scheme: Supporting Product Innovation and Growth:

The SAMRIDH Scheme is an initiative introduced by the Ministry of Electronics and Information Technology (MeitY) to support product innovation and growth among startups in India. This scheme provides funding support and fiscal incentives to startups with proof of concept, thereby enabling them to scale their operations and bring innovative products to the market. By offering financial assistance for product development, market validation, and commercialization activities, SAMRIDH aims to nurture a culture of innovation and entrepreneurship in the technology sector. The scheme plays a crucial role in supporting startups at various stages of their growth journey, from ideation to market entry, and contributes to the development of a vibrant startup ecosystem in India.

Read more about SAMRIDH scheme

8.      NIDHI Scheme: Nurturing Innovation and Startups:

The National Initiative for Development and Harnessing Innovations (NIDHI) is an umbrella program developed by the Department of Science & Technology (DST) to nurture innovation and startups in India. Through various initiatives implemented through Technology Business Incubators (TBIs), NIDHI aims to provide support to innovators, researchers, and entrepreneurs across the country. The scheme offers funding, infrastructure, mentoring, and networking opportunities to startups with innovative ideas and technologies, thereby enabling them to transform their concepts into commercially viable products and services. By fostering collaboration between academia, industry, and government, NIDHI plays a pivotal role in promoting entrepreneurship, fostering innovation-driven enterprises, and contributing to India’s socio-economic development.

Read more about NIDHI scheme

9.      Startup Leadership Program (SLP):

The Startup Leadership Program (SLP) is a global training program designed for aspiring startup founders, innovators, and leaders. Founded in Boston in 2006 and launched in India in 2016, SLP provides a comprehensive curriculum covering various aspects of entrepreneurship, including business strategy, leadership development, fundraising, and networking. The six-month-long program offers participants the opportunity to learn from experienced entrepreneurs, industry experts, and mentors, as well as to build a professional network of peers and collaborators. With no specific age limit, SLP is open to individuals from diverse backgrounds who aspire to become successful startup CEOs and make a positive impact in the world of business and innovation.

Read more about SLP scheme

10.  Startup India Seed Fund Scheme (SISFS):

The Startup India Seed Fund Scheme (SISFS) is a vital initiative launched by the Government of India to provide crucial early-stage funding to startups across diverse sectors. With a substantial total budget of 945 crores, the SISFS addresses a significant challenge faced by startups in their nascent stages of development: access to capital. The SISFS aims to bridge the funding gap that often hampers the growth and progress of startups, particularly during the critical phase of product development, market validation, and initial traction. Unlike traditional funding sources, which may be risk-averse or require significant collateral, the SISFS offers grants without the need for physical incubation or stringent eligibility criteria, emphasizing scalability, innovation, and the feasibility of technology-based solutions.

Read more about SISFS scheme

11. Standup India 

Standup India was first established in 2016 and is governed by the Small Industries Development Bank of India (SIDBI). This one is intended exclusively for people with a ST or SC background. Furthermore, if a single woman is obtaining a starting loan for a new firm, it is acceptable. The following are some crucial characteristics of this loan type: 75% of the project’s cost must be covered by the loan amount. The condition won’t be applicable if the borrower’s contribution is greater than 25% of the total project cost. The interest rate would be the lowest offered by the bank and could not be higher than the MCLR rate plus 3% plus the tenor premium.

Read more about Stand-up India

12. CGTMSE Loans for Startups in 59 Minutes 

In 59 minutes, CGTMSE will provide startup loans. This loan may, in fact, be obtained in as little as an hour, as the name implies. Obtaining finance for a starting firm has never been easier than it is now. To obtain this financing, you must, however, confirm that your company is up and functioning. Determining eligibility can be done in a number of different methods, including: currently available credit options Default capacity the business’s earnings and revenues more criteria established by the lender.

Read more about CGTMSE Loans

Expanding on the previous guide, let’s delve deeper into additional government schemes aimed at empowering Micro and Small Enterprises (MSEs) and startups in India. In this continuation, we’ll explore more initiatives fostering innovation, entrepreneurship, and

In summary, getting money to start a business is super important, especially for new entrepreneurs. There are different ways to get this money, like loans or government programs that help out small businesses. These programs not only give money but also offer advice and support to make businesses better.

Understanding these options and improving things like your credit score can increase your chances of getting the money you need. Government programs are especially helpful because they provide more than just cash—they offer training, connections, and tools to help businesses succeed.

Starting a business can be tough, but with the right help and support, entrepreneurs can overcome challenges and build successful companies that make a difference. So, by taking advantage of funding options and government help, startups can set themselves up for long-term success in the world of business.

Omozing powered by Aparampaar Finance Pvt. Ltd. is an RBI registered NBFC, lending services to different individuals, ensuring that a broader spectrum can access the financial support they need. We offer Unsecured Business Loans from Rs. 1 lakh to Rs. 1 crore, allowing you to address your financial requirements effectively. What sets us apart is our competitive interest rates, starting at just 1% p.m.

 Types of Business Loans that Omozing provides:

1. Unsecured Working Capital Loan
2. Microloans
3. Invoice Discounting
4. GST Surrogate
5. Revenue Based Finance
6. Banking Surrogate

To apply for Business Loan click here