Where startup money comes from in India — from your savings to VCs — plus the government schemes that offer grants, loans and guarantees. Each scheme links to its official site.
Learn the trade-offs in Every way to fund a startup in India and How funding rounds work.
For: DPIIT-recognised early-stage startups
Financial support through selected incubators for proof of concept, prototypes, product trials, market entry and commercialisation — part as grants, part as debt or convertible instruments.
Official site ↗For: DPIIT-recognised startups borrowing from member lenders
A government-backed guarantee on eligible loans, making it easier for startups to borrow without heavy collateral.
Official site ↗For: Startups raising from SEBI-registered funds
The government commits capital to SEBI-registered alternative investment funds (managed through SIDBI), which in turn invest in startups.
Official site ↗For: Micro and small non-farm enterprises
Collateral-free loans in size-based categories for setting up or growing small businesses, through banks, NBFCs and MFIs.
Official site ↗For: Micro and small enterprises
Credit guarantees that help MSMEs obtain collateral-free loans from member lending institutions.
Official site ↗For: First-generation entrepreneurs setting up new micro enterprises
A credit-linked subsidy (margin money) on project cost for new manufacturing and service units, administered by KVIC and state agencies.
Official site ↗For: SC/ST and women entrepreneurs starting greenfield enterprises
Bank loans for setting up new enterprises in manufacturing, services, trading or agri-allied activities.
Official site ↗For: Micro food-processing units
Support for formalising and upgrading micro food-processing enterprises, including credit-linked subsidies and branding support.
Official site ↗For: Startups registered in a given state
Most states offer their own grants, seed funds, rent and patent reimbursements, incubation and procurement benefits.
Official site ↗Scheme names, limits, eligibility and processes change. This page is a general guide, not advice. Always confirm current terms on the official websites linked above, with your bank or with a qualified adviser. Beware of agents who promise guaranteed approvals for a fee.
A company or LLP, PAN, a current account, GST (if applicable), Udyam registration for MSMEs and DPIIT recognition for startup schemes.
A simple business plan, financial projections and runway. Use our cost and runway calculators.
Problem, solution, traction, team and how the money will be used. See The 12-slide pitch deck.
