To enable financial support for start-ups, the Union Cabinet is expected to approve setting up of Rs 2000 crore credit guarantee fund by the end of July 2017.
The proposal was approved by Finance Ministry last week. This fund will be used to lend to start-ups without any collateral, as per the statement from Ramesh Abhishek, Secretary of Department of Industrial Policy and Promotion (DIPP).
One start-up will get a maximum of Rs 5 crore. We are hoping to get the Cabinet approval on this by end of July to operationalise this fund, he said during the launch of start-up India hub portal.
This corpus is expected to help 7500 startups as well as raise additional funding of Rs 15000 crore, as per Abhisheks statement.
Till date, DIPP has successfully recognised 1333 startups and has sought Rs 1600 crore more from the Finance Ministry.
After launch of Start-up India Action Plan, Abhishek said that Rs 960 crore of funds were give out to fund the startups in different segments. While talking about start-up India hub portal he articulate that this platform will help the entrepreneurs in providing information related to governments scheme, about mentors, funders and accelerators.