Government prepared a new scheme for startup companies under which Startups can get a loan upto 5 crores
without collateral through a credit guarantee. the Scheme is Under process awaited for the cabinet approval. this scheme will help new startups to grow fast as availability of finance is there. Government is planning to take budget of 500crores per year for 4 years.
India is promoting startups business and in last few year startup rates is increased by more than 50%. and now one more initiative taken by the government to encourage startups by providing loan to them because finance is the major issue for the startups.
See Some Feature of the scheme
- the Scheme will help flow of venture by local banks.
- Government will give 80% risk cover to bank for Collateral Free credit.
Note: Scheme is under process, Government also ask for feedback from the various startup investors like VCs and angel investors.
We will Update you once the scheme will be launched.