A total of 10,244 startups have applied for concessional loans within the government-set deadline, which ended on Wednesday.
The Industrial Enterprise Development Institute (IEDI), under the Ministry of Industry, Commerce and Supplies, had invited applications on November 5, giving applicants 21 days to submit their proposals. The deadline expired on November 26.
According to IEDI Executive Director Umesh Gupta, 2,041 applicants submitted their project proposals physically, while 8,203 applications were filed online.
The government has allocated Rs 730 million in the annual budget to provide concessional loans to startup entrepreneurs for skill development, business expansion, marketing, and value-chain enhancement. For the current fiscal year, the government aims to disburse such loans to 400 startups.
This startup financing initiative is part of the government’s 39-point “Immediate Reform Work Plan for Promotion of Effective Public Service 2025,” which seeks to accelerate startup investment and simplify related procedures. Under the Startup Loan Facilitation Scheme, eligible startups can receive collateral-free loans at a concessional interest rate of three percent.
As per the revised provision, a single startup can now receive a loan ranging from Rs 500,000 to Rs 2 million, compared to the previous ceiling of Rs 2.5 million.
To qualify, firms must be registered within the last 10 years and have an annual turnover of up to Rs 150 million.
In fiscal year 2023/24, the government had allocated Rs 250 million to the scheme, under which 165 startups received funding. In the prior fiscal year, 600 projects were selected with a total allocation of Rs 1 billion, of which Rs 886.60 million has already been disbursed, according to IEDI.
