New Delhi: The Narendra Modi government’s push for Make in India and emphasis on entrepreneurship has helped to propel India into the 3rd spot globally after the US and China. An entrepreneur took to social media platform X to explain how the Centre helped him secure a cheaper loan.
Lakhani shared his experience on a thread started by Rajan Bajaj, the executive director of North East Small Finance Bank and founder of fintech firm Slice. In a post on X, Bajaj asked users “What do you want from your bank?”
One user Akshay, whose description says he runs a vertically integrated garment factory and who has built a Rs 1 crore e-commerce business, said he needs a loan at 5 per cent without collateral. To which another user Arjun replied that even the government of India does not receive such cheap loans. Here’s Lakhani stepped in to share his experience with X users. Lakhani is the co-founder and CEO of Pneucons a B@B marketplace. He praised PM Narendra Modi’s startup vision, calling it “strong”.
GOI is giving at 5% to startups. We have it. https://t.co/fHwGZo2YNZ pic.twitter.com/2aL3DtWqO5
— Pritesh Lakhani (@priteshlakhani) November 28, 2024
What are the terms of Startup India loan
Lakhani secured a Rs 30 lakh loan to be repaid over a tenure of 36 months at the rate of 5 per cent per annum. He applied for the loan on seedfund.startupindia.gov.in. Lakhani said that a prerequisite for a startup to become eligible for the government loan is to get the startup registered on the Startup India website.
After filling up a simple form, he waited for a couple of months to receive a DPIIT certificate, The Department for the Promotion of Industry and Internal Trade comes under the Commerce Ministry in India.
After getting the DPIIT certification, the startup is required to link this account with Seed Fund India website.
Mention 3 incubators while filling out your application on the Seed Fund India website. Once an incubator accepts your application, reach out to them for screening.
The incubator decides the quantum of your loan. Each startup is allowed up to RS 50 lakh, according to the post.
Once you receive the papers, get them verified by a good lawyer. Lakhani suggests reaching out to an incubator that is closer to your location and pitching to them first to get a sense of how your loan application will pan out.
The startup must have clarity as to why they are seeking this loan, Lakhani added.
Startup founder Pritesh Lakhani took to social media platform X to share a detailed thread on how DPIIT approved startups can receive cheaper loans at 5 per cent p.a. from the Indian government. Here’s a step-by-step guide on how to secure collateral free loans from Startup India. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
