If you are planning to start a business, the biggest challenge faced by entrepreneurs in India is a funding during the early stages of their startup journey. To solve this problem Central Government of India has started the “Startup India Seed Fund Scheme”. The main objective of this scheme is to support promising startups so they can develop ideas, build prototypes, test products and take their business to the market.
In this blog we will cover all the information that is required, such as the Startup India Seed Fund Scheme under which ministry, eligibility, amount provided, important dates, benefits, and the application process.
Startup India Seed Fund Scheme Under which Ministry
So let us start with the very first question: “The Startup India Seed Fund Scheme comes under Ministry of Commerce and Industry, Government of India. It is being implemented through the Department for Promotion of Industry and Internal Trade (DPIIT). The Government of India directly support young entrepreneurs by providing them with funding.
Primary objectives
- To provide financial help to the young entrepreneurs.
- Helpful to provide financial support at the idea and prototype stage of startup.
- Also reduce dependency on private investors at early stage.
- Also helpful to reduce dependency on private investors at early stage.
- To encourage more youth participants innovation and entrepreneurship.
Startup India Seed Fund Scheme Eligibility
Here are some eligibility requirements as listed below:
- The startup must be recognised by DPIIT under Startup India.
- The startup should be older than 2 years at the time of application.
- It must have a business idea with potential for scaling and Employment generation.
- The startup should be working on innovative products or services in sectors like health, agriculture, fintech, AI, Energy or social impact.
- The startup must not have received more than 10 lakh in financial assistance from any government scheme.
- Preference will be given to startups from tier 2 and tier 3 cities.
Startup India Seed Fund Scheme Amount Provided
The financial support is provided in two different categories:
- A startup can receive up to 20 Lakh as a grant for proof of Concept, prototype development, or product trials.
- A startup can also get 50 lakh as an investment support for market entry or scaling up.
Interest Rates:
One of the biggest advantage of this scheme is that grant provided do not carry any interest rate since they are not loans but financial support.
- For grants (up to ₹20 lakh) – No repayment and no interest.
- For funding up to ₹50 lakh in the form of debt or convertible debentures
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How to apply online for startup India seed fund scheme?
For the step by step process and instructions as listed below:
- Visit the official website Startup India.
- On the homepage, you need to select and complete your registration.
- Go to the seed fund scheme section and apply online.
- Select an incubator from the approved list that matches your startup sector.
- Fill the application form, upload a business pitch, financial details, and supporting documents.
- After verification, funds will be distributed to the incubator.
Important benefits of startup India seed fund scheme
- Provide financial relief for most difficult stage of startup.
- Encourage startups from smaller cities.
- Promote Innovation and Entrepreneurship among Indian youth.
- Build a strong startup ecosystem across India.
- Help in job creation and economic growth.
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