The Indian government is reaching new highs when it comes to
drafting policy, giving mortgages and funding schemes for startups in the
nation. First-time entrepreneurs generally are in need of funding to support
their ideas and promote their enterprise or level up the business. The Indian
government has proposed many solutions to help them in this fight of
fundraising, one of the most popular and helpful government funding for startups in India scheme is Pradhan Mantri
Mudra Yojana that provides investment and loans to small companies via MUDRA, a
non-banking financial company (NBFC).
Micro Units Development and Refinance Agency (MUDRA) grants
new entrepreneurs with loan requirements up to INR 10 Lakh.
Types of Mudra Loan for
Startups
The government funding for startups in India under MUDRA Scheme is
divided into 3 sections:
1.
Shishu: This kind of loan is granted to startups who are in
their beginning years and can be provided INR 50K. This purpose behind is to
match capital expenses on the infrastructure, setting up cost, equipment or
bulk buying of raw supplies to commence the work.
2.
Kishore: The second category under Micro Units Development and
Refinance Agency (MUDRA) is the Kishore category and it provides help of INR
50K to INR 5 Lakh. The Kishore loan is directed at raising capital or extension
of sales by the entrepreneur in its extension years.
3.
Tarun: The third section is Tarun who accommodates fund
requirements above INR 5 lakh but beneath INR 10 lakh.
In order to promote
entrepreneurship amongst the youth and nourish the extension of the startup
ecosystem over the country, the government
funding for startups in India has accelerated in the past few years.
Considering MUDRA, the focus of the government is more on Shishu-category
business units.
How to avail of this loan?
To get Mudra grants, a startup
enterprise has to look out in which category their business falls in. They must
categorize themselves according to rules and fund necessities of
micro-enterprises, this governmentfunding for startups in India is intended to promote the startup ecosystem
and nurture its growth to victory.
Once a startup has decided on the
category, the next duty is to determine where the Mudra loan can be availed,
comparing the various interest rates offered. After one has decided, the
budding entrepreneur can then apply for Mudra loan from banks. One can also
apply online.
Next, the entrepreneurs have to
provide all required documents asked in order to get their loan sanctioned.
