Top 10 Ways the Government Can Fund Your Startup
Many startups and innovators in India face the same hurdle: where will the funding come from? You might have the next big breakthrough sitting in your notebook or lab, but without the right financial support, it risks staying there forever. Luckily, the Indian government understands this challenge. That’s why it offers several official programs like grants, loans, guarantees, and even equity investment to help you turn your ideas into real, working solutions. Simple Terms You Should Know: - Startup: A newly started business with a unique idea or model. - Grant: Money you don't have to repay. - Collateral-free loan: A loan where you don't need to give security (like property or gold). - DPIIT-recognized startup: Startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT), you can do this online on the Startup India portal. - Incubator: A government-approved place that supports startups with money, office space, and mentoring. Here’s a simple guide to 10 powerful schemes from trusted .gov and official sources that could be your stepping stones to success. 1. Startup India Seed Fund Scheme (SISFS) 2. Credit Guarantee Scheme for Startups (CGSS) 4. SAMRIDH Scheme (By MeitY) 5. Stand-Up India Scheme 6. Atal Innovation Mission (AIM) 7. Technology Development Board (TDB) 8. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) 9. Fund of Funds for Startups (FFS) 10. SAMRIDH 2.0 (Scale Stage)
1. Startup India Seed Fund Scheme (SISFS)
What it is: Financial support for early-stage startups to turn ideas into real products. Benefits: - Up to ₹20 lakh for idea development and proof of concept. - Up to ₹50 lakh for product development, trials, and market entry. - Funding is given through approved incubators.
2. Credit Guarantee Scheme for Startups (CGSS)
What it is: Helps startups get loans from banks without offering collateral. Benefits: - Credit guarantee up to ₹20 crore per startup. - Government covers 75–85% of the risk for lenders. - Makes it easier for startups to get approved for loans. 3. NIDHI-PRAYAS (By DST) What it is: Support for individual innovators and early startups to build their first prototype. Benefits: - Grant of up to ₹10 lakh to convert an idea into a working model. - Access to labs, tools, and technical support through incubators. - Ideal for college students, researchers, and early innovators.
4. SAMRIDH Scheme (By MeitY)
What it is: Helps tech-based startups grow faster with support from accelerators. Benefits: - Funding support through accelerators. - Helps in product development, marketing, and investor connections. - Targeted at startups with a ready product.
5. Stand-Up India Scheme
What it is: Provides loans to women and SC/ST entrepreneurs to start new businesses. Benefits: - Loan amount from ₹10 lakh to ₹1 crore. - For greenfield businesses in manufacturing, services, or trading. - At least one borrower per bank branch is supported.
6. Atal Innovation Mission (AIM)
What it is: A government initiative to promote innovation through funding and incubators. Benefits: - Support through Atal Incubation Centres for startup mentoring and workspace. - Challenge-based grants like Atal New India Challenge with up to ₹1 crore. - Focus on solving real social problems in areas like health, education, and agriculture.
7. Technology Development Board (TDB)
What it is: Helps startups bring new technologies into the market. Benefits: - Low-interest loan covering up to 50% of project cost. - Option for equity participation by the board. - Focus on technology-based products with market potential. Read More: 👉 Explore all Government Schemes for Startups in India Get full details, eligibility, and application steps for each scheme in one place.
8. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
What it is: Offers collateral-free loans to startups and MSMEs through partner banks. Benefits: - Loan up to ₹5 crore without security. - Government guarantees 50% to 85% of the loan to the bank. - Available through over 130 approved lenders.
9. Fund of Funds for Startups (FFS)
What it is: Government investment into SEBI-registered funds that later invest in eligible startups. Benefits: - Provides equity funding to DPIIT-recognized startups indirectly. - Encourages private venture capital to support Indian startups. - Focuses on long-term growth and innovation.
10. SAMRIDH 2.0 (Scale Stage)
What it is: An updated version of the SAMRIDH scheme, focusing on startups ready to scale nationally or globally. Benefits: - Offers equity-based funding through accelerators. - Helps startups expand to international markets. - Provides expert mentoring and investor access. Read the full article
