As many as 5,250 individuals have submitted proposals for the government's loan scheme for startups for the current fiscal year, surpassing the government’s annual target for providing the facility by nearly nine times.
The Startup Enterprise Loan Program was implemented last fiscal year. A total of 165 startups were provided the loans under the scheme in the period.
The government has allocated Rs 1 billion for the programme this fiscal year and aims to provide the subsidised loans to as many as 600 startups.
Under the scheme, a selected startup is provided Rs 500,000 to Rs 2.5 million in loan at 3 percent interest per year. It is implemented by the Industrial Enterprise Development Institute (IEDI).
On August 27, the institute had called the eligible individuals to submit the proposals for the loans within the next 21 days.
Umesh Kumar Gupta, Executive Director of IEDI, said that there were more online applications this year, as entrepreneurs could submit projects both online and in person.
Gupta attributed the surge in the number of applicants to extensive publicity and an increase in the budget for the programme. Last fiscal year, Rs 250 million was allocated for the programme.
The loan is provided by keeping the eligible projects as collateral.
Of the 1,658 applications last fiscal year, the IEDI had recommended only 183 projects for the loan. Of them, 165 projects have been provided the loan under the scheme so far, Gupta said.
Government aims to promote 10,000 startups and create 100,000 jobs by 2030.
