DPIIT will soon approach cabinet with a proposal to create a Startup India seed fund & launch a credit guarantee scheme to help budding entrepreneurs and startups.
The National Seed Fund seeks to support ideation and development of early stage startups whereas the credit guarantee scheme will enable startups to raise easier loans.
In 2019's election manifesto, BJP promised to create a seed startup fund of Rs 20,000 crore to back early-stage companies and a scheme to provide collateral-free credit of up to Rs 50 lakh for entrepreneurs wherein 50% of the loan amount would be guaranteed towards female entrepreneurs, while 25% will be for male entrepreneurs.
A National Seed Fund was announced in 2020-21 budget to support ideation and development of early stage startups whereas the credit guarantee scheme will enable startups to raise loans for their business purposes.
more details awaited, will keep you posted how to apply soon