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“Top Government Schemes for Startups in India: Funding, Loans & Tax Benefits Explained” - BootBoost
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“Top Government Schemes for Startups in India: Funding, Loans & Tax Benefits Explained”

February 20, 2026
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5 min read
Explore top government schemes for startups in India offering funding support, collateral-free loans, and tax benefits to help entrepreneurs start, scale, and grow successfully.

India has become one of the fastest-growing startup ecosystems in the world. To enhance innovation, create jobs, and foster entrepreneurship, the Government of India has launched several schemes that provide funding, tax benefits, mentorship, and compliance support.

If you are interested in starting or expanding your business, these government initiatives can help reduce financial burdens and facilitate quicker growth.

 

1️⃣ Startup India Initiative

Launched in 2016, Startup India is the country's flagship program aimed at promoting entrepreneurship.

Key Benefits:

Tax Exemption: Enjoy tax exemption for three consecutive years.

Self-Certification: Benefit from self-certification regarding labor and environmental laws.

Fast-Track Patent Application: Gain access to a streamlined patent application process.

Government Tenders: Get access to government tenders.

Networking and Mentorship: Receive support through networking and mentorship opportunities.

 

To avail of these benefits, your business must be recognized by the DPIIT (Department for Promotion of Industry and Internal Trade).

 

2️⃣ Fund of Funds for Startups (FFS)

Under the Startup India initiative, the government established a ₹10,000 crore Fund of Funds managed by SIDBI. 

What It Does:

- Invests in venture capital funds registered with SEBI

- These funds then provide investments to startups

- Assists early-stage businesses in raising capital

 

This initiative is particularly beneficial for startups seeking equity funding.

 

3️⃣ MUDRA Loan Scheme (PMMY)

The Pradhan Mantri MUDRA Yojana is designed to support small and micro businesses. It offers loans in three categories:

 

Shishu: Up to ₹50,000

Kishor: From ₹50,000 to ₹5 lakh

Tarun: From ₹5 lakh to ₹10 lakh

 

No collateral is required, making this scheme ideal for small entrepreneurs and local businesses.

 

4️⃣ Stand-Up India Scheme

This scheme promotes entrepreneurship among women and SC/ST entrepreneurs.

Benefits:

  • Loans between ₹10 lakh to ₹1 crore
  • Support for manufacturing, trading, and service sectors
  • Bank assistance and guidance

 

5️⃣ Atal Innovation Mission (AIM)

Focused on innovation and technology-driven startups. This includes:

• Atal Incubation Centers

• Innovation labs

• Mentorship programs

It is best suited for tech startups and innovation-based businesses.

 

6️⃣ CGTMSE (Credit Guarantee Scheme)

Provides collateral-free loans to MSMEs.

Advantage:

  • Government guarantees a portion of the loan
  • Reduces risk for banks
  • Easier approval for startups

 

7️⃣ MSME Registration Benefits

By registering as an MSME (Udyam Registration), startups can get:

  • Subsidies
  • Lower interest rates
  • Protection against delayed payments
  • Priority in government tenders

 

Why Government Schemes Matter for Startups

  • Reduce financial burden
  • Improve credibility
  • Provide access to funding
  • Offer mentorship and incubation
  • Support long-term growth

 

Funding, Loans & Tax Benefits Explained

The Government of India offers several schemes to support startups through funding opportunities, collateral-free loans, and tax exemptions. These initiatives aim to alleviate financial burdens, encourage innovation, and promote entrepreneurship across the country.

 

Funding Support

Programs like Startup India and the Fund of Funds for Startups (FFS) provide equity funding through venture capital support and incubation initiatives. These efforts assist early-stage startups in raising capital and scaling their operations more rapidly.

 

Loan Assistance

Initiatives such as MUDRA Yojana, Stand-Up India, and CGTMSE offer collateral-free or government-backed loans, making it easier for small businesses and new entrepreneurs to access financial support without the need for heavy collateral.

 

Tax Benefits

Startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) can benefit from income tax exemptions for three years. Additionally, they enjoy advantages such as self-certification for compliance and expedited patent approvals.

 

How Boot & Boost Helps You Apply for Government Startup Schemes

Applying for government schemes is not just about filling out a form — it requires proper documentation, financial planning, understanding of compliance, and a strong business presentation. This is where Boot & Boost becomes your strategic growth partner.

1️⃣ Scheme Identification & Eligibility Check

Many founders are confused about which scheme fits their business. Boot & Boost analyzes your business model, sector, funding stage, and eligibility criteria to recommend the right scheme — whether it’s Startup India, MUDRA, Stand-Up India, or MSME benefits.

2️⃣ DPIIT & MSME Registration Support

We assist in:

  • Startup India (DPIIT) recognition
  • Udyam (MSME) registration
  • Documentation preparation
  • Compliance guidance

This ensures your startup becomes officially eligible for government benefits.

3️⃣ Professional Project Report Preparation

Government loans and funding approvals depend heavily on a strong project report. Boot & Boost prepares:

  • Detailed financial projections
  • Market research analysis
  • Business feasibility report
  • Loan-ready documentation

A professionally prepared report increases approval chances significantly.

4️⃣ Investor-Ready Pitch Deck Creation

For schemes like Fund of Funds or incubation programs, presentation matters. We design:

  • High-impact pitch decks
  • Business model explanation
  • Revenue and growth strategy
  • Competitive positioning

This helps you confidently present your startup to banks, incubators, and investors.

5️⃣ Loan & Funding Application Assistance

From documentation to submission guidance, Boot & Boost supports you through:

  • Bank loan documentation
  • Collateral-free scheme guidance
  • Financial structuring
  • Clarification of compliance requirements

6️⃣ End-to-End Business Growth Strategy

Government support is just the beginning. After funding, we help you with:

  • Digital marketing strategy
  • Website & branding
  • Performance marketing
  • Business automation

This ensures your startup not only gets funding but also scales sustainably.

 

Why Choose Boot & Boost?

  • Expert guidance in startup documentation
  • Strong understanding of government policies
  • Professional business presentation support
  • Growth-focused digital solutions
  • One-stop solution from idea to expansion

 

Final Words

Government schemes can unlock huge opportunities — but proper planning and documentation are crucial for approval.

With Boot & Boost, you don’t just apply for a scheme — you build a structured, investor-ready, and growth-driven business foundation.

If you’re ready to turn your startup idea into a funded and scalable venture, Boot & Boost is here to guide you at every step. 

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