Overview

Do you have an innovative idea for a startup? Do you want to get started without any delays? Are you willing to work tirelessly towards it in order to make it grow into something big? If all that is holding you back are finances, think no further, we are there for you; to finance your startup and watch it grow as you grow with it. SWASHAKTHI is a national program to develop startups, which has been designed and implemented with people like you in mind. People with entrepreneurial ideas and talent, who have the courage and strength to see their dreams and ideas transform into reality. Part of the ‘One Million Jobs Program’, we will turn 25,000 of your ideas into 25,000 startups.

How to apply

Loan Mechanism

  • Loan applicants to submit project proposal.
  • Evaluation of the project proposal and selection by participating banks, or by the Small Enterprise Development Division of the Ministry of National Policies and Economic Affairs.
  • Startups will receive a grant up to Rs. 10,000/- in lieu of initial expenses. The new entrepreneur is expected to make an equivalent contribution, then the initial project work can commence.
  • A maximum of Rs. 200,000/- as a startup loan, at an interest rate of 5.5% per annum.
  • A further amount of up to Rs. 40,000/- will be disbursed as a grant upon evaluation of the project after the initial six months.
  • Existing businesses will receive a maximum loan of Rs. 250,000/- at an interest rate of 5.5%.

What is Swashakthi?

To whom

  • Prospective micro, small and medium scale entrepreneurs at village level who want to commence new businesses or to expand existing businesses.

  • Entrepreneurs with new ideas that use local area resources, IT based products and eco friendly economic activities etc.

  • Youth, women, young graduates, skilled and differently abled people.

Project Selection Criteria

  • Novelty of business ideas

  • Entrepreneurial and technical skills of the loan applicant

  • Market demand for the proposed product

  • Marketing and packaging strategies
  • Potential for Employment generation

  • Appropriateness of technology

  • Technical and financial feasibility of the project

  • Environmental Impact

  • Strength of the business plan

  • All businesses that can potantially generate revenue in the Agriculture, Industrial and Service sectors are eligible. The projects/businesses indicated below will be given preference.

Loan Amount and Interest Rate

The loan scheme is designed for startups, under which a maximum loan amount of Rs. 200,000/- will be given at a nominal interest rate of 5.5%. In addition, a maximum grant of Rs. 50,000/- will be given to meet initial expenses of the startup business. Existing businesses will receive a maximum loan ofRs. 250,000/- at an interest rate of 5.5%.

Criteria for providing the second portion of the grant

In order to be eligible Rs. 40,000 which is for the second part of the grant, the newly established enterprises should meet a minimum of one of the following criteria:

  • Turnover growth of at least 20% per annum
  • Must create at least one additional employment opportunity
  • Achieving 80% of the targets of the business plan set for the first 6 months

The eligible entrepreneur needs to apply for the second part of the grant through the Small Enterprises Development Division (SED) of MNP&EA or from the relevant PFI, after achieving at least one of the above targets.
SED of the MNP&EA will assess the compliance of the applications received by the SED and submit the applications to the PFI with recommendations.

Succeeding Loans

Additional loans can be obtained from the respective participating bank based on the success of the business, at a moderate interest rate.

Call - 0112 669 234