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I think I should answer this question because I have been researching on Bandhan Bank for quite some time now.Bandhan Bank is the newest Organization to enter the Banking Industry after receiving a Banking License from RBI on 17th June 2015. In this post, I will tell you about how it was formed and how it scaled up to become a bank.Chandra Sekhar Ghosh, the entrepreneur who is the founder of Bandhan, has more than 15 years of experience working with the rural farmers and traders at ground level. He worked with BRAC for 13 years and then with Village Welfare Society for 2 years as Head of Operations where his salary was Rs 5000 / month.He quit Village Welfare Society and with all the experience, formed Bandhan Konnagar NGO in 2002 at Konnagar near Kolkata. The objective of this NGO was to provide micro-loans to small vegetable vendors, shopkeepers and traders. He roped in his friends from previous organizations to start this NGO and invested his life savings of Rs 2 lakhs in this startup.Bandhan Konnagar first collected Rs 5 as deposit per day for 40 days from its customers (called as members) and then it offered them micro-loans of Rs 1000 to be paid back in equal weekly instalments. In its 1st year, Bandhan had 2 branches and it provided micro-credit to 512 borrowers. Its loan book was only Rs 3 lakhs.In the 2nd year of its journey, ie, in 2003, SIDBI became the first organization to lend money to Bandhan. However, no new branches were opened as the founder and his team were forming a system which would later be duplicated in all new branches.They started forming groups among its members (Borrowers). Almost all members were women. Every group would consist of a few members and they would meet regularly at a meeting place and pay their instalments.This type of group formation would ensure that everyone paid their instalments and no one defaulted as it would ruin their reputation among peers.The 2 branches increased the loan book to Rs 21 lakhs and the number of borrowers to 1440. Now, with a proper business system in place and the success of its two initial branches, Bandhan opened new branches in 2004, all in West Bengal.By end of 2004, Bandhan had 10 branches, 5700 borrowers and Rs 1.2 crore loan book. Soon, ASA also started lending money to Bandhan along with SIDBI. By 2006, Bandhan had 155 branches, 1.49 lakh borrowers and Rs 37 crore loan book.According to RBI guidelines, 40 % of all bank loans have to be given to the Agricultural sector and Small Industries. These loans are called priority loans.As Bandhan NGO was in the business of giving loans within this sector and it was growing at an unbelievable pace in West Bengal, banks like HDFC, ICICI, UBI, ABN Amro and UTI (now Axis) started lending to Bandhan as this would be counted as priority loans.As Bandhan had no shortage of funds and after its success in West Bengal, it started charting out plans to expand to other states as well. As a smart entrepreneur, Ghosh hired a consultancy firm called MicroSave for assistance in the expansion.First, it opened new branches in North Eastern states, then in the Eastern States and finally it entered Delhi & Maharashtra in 2008. By 2011, Bandhan had 1553 branches, 8800 employees, 32 lakhs borrowers and a loan book of Rs 2000 crores!!As Bandhan had become a very big organization, it had to let go of its NGO status for further scaling up of operations. Thus it acquired a Kolkata based NBFC called as Ganga Niryat Pvt Ltd and renamed it 'Bandhan Financial Services Pvt Ltd'.It transferred its entire MFI (Micro Finance Institution) portfolio to this NBFC and Bandhan Konnagar NGO became its CSR arm that conducted training.During expansion, like every company, Bandhan also faced a lot of problems. Example: In an unfortunate scenario, the Andhra Pradesh Government banned all microfinance activities in the state as there was an increasing no of farmer suicide cases.The microfinance industry came to a standstill. Big players such as BSFL and SKS microfinance were hit hard. However, Bandhan was not present in Andhra Pradesh and it was not affected in any way.Still, the flow of funds had started slowing down but later it became normal in the coming years.Another problem was that some people thought of Bandhan as a chit fund but later they realized that Bandhan was an organization which was giving loans to the needy.Chandra Sekhar Ghosh knew that these type of problems would arise and thus he always focused on training of employees and members. When Bandhan was a small startup, then also Sundays were fixed for training purpose.As it started growing, Bandhan used to book auditoriums for training and sometimes group picnic that too for training purpose. Now Bandhan has its own training centres in all zones of the country.In 2010, Finance Minister Pranab Mukherjee announced that new banking licenses would be given. The eligibility for application was10 years of track record in the Finance Sector.Should never have been under the scanner of any regulator.The capital of at least Rs 500 crores. (Bandhan had Rs 3000 crore capital at that time)26 applications were submitted. The names included some big guns such as Aditya Birla Nuvo, Reliance Capital, LIC Housing Finance, L&T housing finance, Janlakshmi Finance, India Post, Tata capital etc.However, on 2nd April 2014, RBI announced the final two names who will be given banking license: IDBI and Bandhan.Bandhan had an outstanding track record in the microfinance industry as it had less than 2% bad loans (NPAs), unlike its competitors. This was because of the system each branch followed of inculcating values among its borrowers, training of employees and keeping a strict tab of loan disbursal.For becoming a Bank, Bandhan had to set up a proper IT system in place. For that, it hired FIS IT services.Finally, it was given the Banking License on 17th June 2015.How was Bandhan different from its peers in the microfinance Industry?Bandhan and its founder always had focused on microfinance business and never diverted their attention to any other business activity. Its founder Chandra Sekhar Ghosh, was never media hungry and his only focus was on taking Bandhan to new heights.On the other hand, his peers in the MFI industry were all celebrity promoters and today they are nowhere to be seen as they lost focus of the track.After achieving initial success, it quickly expanded to other states and was never concentrated in a single state. Even if it was present in Andhra Pradesh at that time, it would not have been much of a problem after the Ban on microfinance activities in the state. Its peers such as BSFL and SKS Microfinance were hit hard on their faces and BSFL closed down very soon.Bandhan raised capital only from those organizations whose focus was rural development. Thus investors in Bandhan could align themselves with the mission of Bandhan.It focused on improving the business system such as the formation of member groups and inculcating values among them. It focused on training.Source of Research: Wikipedia/ Book called BANDHAN by Tamal Bandyopadhyay/ Newspaper Articles.

The Government of India has launched 50+ schemes for startups in the past few years under its Startup India initiative.The problem is, many people are not aware of the startup schemes and the limitless benefits one can avail, ranging from Startup registration, Startup loans and funding.There are close to 4,400 technology startups being operated currently in India and this number will soon touch 12,000 by 2020 but there aren’t enough startups who are taking advantage of the schemes formulated by the government.If you have a business idea or just starting out a new startup/business, I’m listing down 10 startup schemes out of the 50+ startup schemes introduced by the government of India in the last few years. You can find the full list here.Startup Scheme 1: Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligible For: MSMEs and technology startups in the ICTE sector.Overview: The scheme, launched by the Indian government, aims to provide financial support to MSMEs and technology startup units for international patent filing to encourage innovation and recognise the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.Fiscal Incentives: Reimbursement will be limited to a total of INR 15 Lakhs per invention or 50% of the total expenses incurred in filing and processing of the patent application up to grant, whichever is lesser.Time Period: The scheme is valid upto 30.11.2019.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 2: Multiplier Grants Scheme (MGS)Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligible For: Startups, incubator/academia/accelerators. Should have projects in electronics & information technology.Overview: The MGS aims to encourage collaborative R&D between industry and academics/R&D institutions for development of products and packages.Fiscal Incentives: The Government grants for individual industry would be limited to a maximum of INR 2 Cr per project and the duration of each project should, preferably, be less than two years. For industry consortiums, these figures would be INR 4 Cr and three years.Time Period: 2-3 yearsTo know more about this startup scheme by the Indian Government, click here.Startup Scheme 3: Software Technology Park (STP) SchemeIndustry Applicable: IT services, fintech, enterprise software, analytics, AI.Eligible For: Software companiesOverview: The STPI has been set up with the objective of encouraging, promoting, and boosting software exports from India. The STP Scheme, by the Indian government, provides statutory services, data communications servers, incubation facilities, training and value-added services. The scheme allows software companies to set up operations in convenient and inexpensive locations and plan their investment and growth, driven by business needs.Fiscal Incentives: Sales in the DTA up to 50% of the FOB value of exports is permissible and depreciation on computers at accelerated rates up to 100% over 5 years is permissible.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 4: Electronic Development Fund (EDF) PolicyIndustry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI, nanotechnology.Eligible For: Startups pursuing innovation in technology sectors like electronics, IT, and nanoelectronics.Overview: The agenda was envisaged to develop the Electronics System Design and Manufacturing (ESDM) sector to achieve “Net Zero Imports” by 2020. The EDF will help attract venture funds, angel funds and seed funds towards R&D and innovation in the specified areas. It will help create a cell of Daughter funds and Fund Managers who will be seeking good startups (potential winners) and selecting them based on professional considerations.Fiscal Incentives: The Electronic Development Fund (EDF) is set up as a “Fund of Funds” to participate in professionally-managed “Daughter Funds” which, in turn, will provide risk capital to companies developing new technologies. CANBANK Venture Capital Funds Ltd. (CVCFL) is the Fund Manager for EDF.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 5: Modified Special Incentive Package Scheme (M-SIPS)Industry Applicable: Technology hardware, Internet of Things, aeronautics/aerospace & defence, automotive, non-renewable energy, renewable energy, green technology and nanotechnology.Eligible For: Startups in electronic manufacturingOverview: The scheme aims to support IPR awareness workshops/seminars for sensitising and disseminating awareness about Intellectual Property Rights among various stakeholders especially in the E&IT sector.Fiscal Incentives: This startup scheme by Indian government provides a capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing. It also provides for reimbursements of CVD/ excise for capital equipment for the non-SEZ units. For some of the high capital investment projects like the scheme provides for Central Taxes and Duties reimbursement of Central Taxes and Duties.Time Period: N/ATo apply online, one can click here.Startup Scheme 6: Scheme to Support IPR Awareness Seminars/Workshops in E&IT SectorIndustry Applicable: IT services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligibility: This startup scheme by the Indian government is eligible for educational institutes and industry bodies like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc., DeitY Society(ies) or DeitY Autonomous Body(ies). It is mandatory that the organisation should be registered with the Central Plan Scheme Monitoring System (CPSMS) portal, in order to apply for support for IP Awareness Workshop(s)/Seminar(s).Overview: The scheme provides IP (Intellectual Property) awareness workshops and seminars and funding grants.Fiscal Incentives: The organisations are provided with a grant of INR 2 Lakhs to INR 5 Lakhs. This includes educational institutes – INR 2 Lakhs, industry bodies – INR 3 Lakhs and DeitY Society(ies) or DeitY Autonomous Body(ies) – INR 5 Lakhs.Time Period: The scheme is valid upto 30.11.2019.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 7: NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)Industry Applicable: Chemicals, technology hardware, healthcare & lifesciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & Beverages, pets & animals, textiles & apparel.Eligibility: The parent institution should have requisite expertise and infrastructure. This includes a minimum dedicated space of about 5,000 square feet to establish a NewGen IEDC, library, qualified faculty, workshops, etc.Overview: The NewGen IEDC is being promoted in educational institutions to develop an institutional mechanism to create an entrepreneurial culture in S&T academic institutions and to foster techno-entrepreneurship for generation of wealth and employment by S&T persons. As of now, there are total 40+ EDCs and 35 IEDCs in different states.Fiscal Incentives: The NSTEDB startup scheme by the Indian government will provide a limited, one-time, non-recurring financial assistance, up to a maximum of INR 25 Lakhs. Also, non-recurring grants would be provided for supporting working capital cost.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 8: The Venture Capital Assistance SchemeIndustry Applicable: AgricultureEligibility: Assistance under this scheme by Indian government will be available to individuals, farmers, producer groups, partnership/proprietary firms, self-help groups, companies, agri-preneurs, units in agri-export zones, and agriculture graduates individually or in groups for setting up agri-business projects. For professional management and accountability, the groups have to preferably form into companies or producer companies under the relevant Act.Overview: Venture Capital Assistance is financial support in the form of an interest-free loan provided by the SFAC to qualifying projects to meet the shortfall in capital requirements for implementation of the project. The Scheme was implemented during 2012-17 in the XII Plan. SFAC has formed tie-ups with 41 banks to provide financial support.Fiscal Incentives: The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following:- 26% of the promoter’s equity.- INR 50 Lakhsfor projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following:- 40% of the promoter’s equity.- INR 50 LakhsTime Period: This startup scheme is valid for the period between 2012-2017.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 9: Credit GuaranteeIndustry: Sector-AgnosticEligibility: The scheme is applicable for new and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding retail trade, educational institutions, agriculture, self-help groups (SHGs), training institutions, etc.Overview: The scheme was launched by the Indian government to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector. Lending institutions majorly included public, private, foreign banks along with regional rural banks, and SBI and its associate banks.Fiscal Incentives: Both term loans and/or working capital facility up to INR 100 Lakhs per borrowing unit are being provided. The guarantee cover provided is up to 75% of the credit facility up to INR 50 Lakhs (85% for loans up to INR 5 Lakhs provided to micro enterprises, 80% for MSEs owned/operated by women and all loans to NER including Sikkim) with a uniform guarantee at 50% for the entire amount if the credit exposure is above INR 50 Lakhs and up to INR 100 Lakhs.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 10: Performance & Credit Rating SchemeIndustry Applicable: Sector-agnosticEligibility: MSMEs registered in India are eligible to apply under this scheme. In May 2017, the guidelines were revised which stated that a unit with a turnover of INR 1 Cr or above will be eligible under the scheme. Now the case of rating needs to be recommended by a bank or NBFC.Overview: The scheme aims to create awareness about the strengths and weaknesses of small-scale industries. It was formulated by the Ministry of MSME under the Indian government in consultation with various stakeholders i.e. Small Industries Associations & Indian Banks’ Association and various rating agencies viz. CRISIL, ICRA, Dun & Bradstreet (D&B) and ONICRA.Fiscal Incentives: The incentives are proportional to the turnover of the MSMEs. For instance, up to INR 50 Lakhs, 75% of the rating fee or INR 25,000 (whichever is less) will be contributed under the scheme. For turnover above INR 50 Lakhs to INR 200 Lakhs, 75% of the fee or INR 30,000 (whichever is less) while for turnover more than INR 200 Lakhs, 75% of the fee or INR 40,000 (whichever is less).Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.And there are 40 more startup schemes that you should know about if you’re operating a business in India.P.S. - You can also download this FREE eBook: 49 Startup Schemes By Indian Government to gain in-depth information about all the active startup schemes.To keep track of what’s happening in the Indian startup ecosystem, visit: Inc42 Media - Your Gateway To The Indian Startup Ecosystem

Prime Minister Narendra Modi had coined the new slogan ‘Startup India, stand up India’ during his Independence Day speech, 2015.“We are looking at systems for enabling startups. We must be Number 1 in startups. ‘Startup India’ & ‘Stand up India” Narendra Modi said.Through this slogan, he initiated a mechanism to turn the unemployed youth of the country from job seekers to job creators.He added…“We assure you that there would be no district or block in the nation where startups are not provided. I will take this scheme to my tribal brothers. Every bank should ensure that its every branch must give loan for startups to at least one Dalit or tribal,”The Government of India has launched 50+ schemes for startups in the past few years under its Startup India initiative.There are close to 4,400 technology startups being operated currently in India and this number will soon touch 12,000 by 2020 but there aren’t enough startups who are taking advantage of the schemes formulated by the government.If you have a business idea or just starting out a new startup/business, I’m listing down 10 startup schemes out of the 50+ startup schemes introduced by the government of India in the last few years. You can find the full list here.Startup Scheme 1: Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligible For: MSMEs and technology startups in the ICTE sector.Overview: The scheme, launched by the Indian government, aims to provide financial support to MSMEs and technology startup units for international patent filing to encourage innovation and recognise the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.Fiscal Incentives: Reimbursement will be limited to a total of INR 15 Lakhs per invention or 50% of the total expenses incurred in filing and processing of the patent application up to grant, whichever is lesser.Time Period: The scheme is valid upto 30.11.2019.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 2: Multiplier Grants Scheme (MGS)Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligible For: Startups, incubator/academia/accelerators. Should have projects in electronics & information technology.Overview: The MGS aims to encourage collaborative R&D between industry and academics/R&D institutions for development of products and packages.Fiscal Incentives: The Government grants for individual industry would be limited to a maximum of INR 2 Cr per project and the duration of each project should, preferably, be less than two years. For industry consortiums, these figures would be INR 4 Cr and three years.Time Period: 2-3 yearsTo know more about this startup scheme by the Indian Government, click here.Startup Scheme 3: Software Technology Park (STP) SchemeIndustry Applicable: IT services, fintech, enterprise software, analytics, AI.Eligible For: Software companiesOverview: The STPI has been set up with the objective of encouraging, promoting, and boosting software exports from India. The STP Scheme, by the Indian government, provides statutory services, data communications servers, incubation facilities, training and value-added services. The scheme allows software companies to set up operations in convenient and inexpensive locations and plan their investment and growth, driven by business needs.Fiscal Incentives: Sales in the DTA up to 50% of the FOB value of exports is permissible and depreciation on computers at accelerated rates up to 100% over 5 years is permissible.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 4: Electronic Development Fund (EDF) PolicyIndustry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI, nanotechnology.Eligible For: Startups pursuing innovation in technology sectors like electronics, IT, and nanoelectronics.Overview: The agenda was envisaged to develop the Electronics System Design and Manufacturing (ESDM) sector to achieve “Net Zero Imports” by 2020. The EDF will help attract venture funds, angel funds and seed funds towards R&D and innovation in the specified areas. It will help create a cell of Daughter funds and Fund Managers who will be seeking good startups (potential winners) and selecting them based on professional considerations.Fiscal Incentives: The Electronic Development Fund (EDF) is set up as a “Fund of Funds” to participate in professionally-managed “Daughter Funds” which, in turn, will provide risk capital to companies developing new technologies. CANBANK Venture Capital Funds Ltd. (CVCFL) is the Fund Manager for EDF.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 5: Modified Special Incentive Package Scheme (M-SIPS)Industry Applicable: Technology hardware, Internet of Things, aeronautics/aerospace & defence, automotive, non-renewable energy, renewable energy, green technology and nanotechnology.Eligible For: Startups in electronic manufacturingOverview: The scheme aims to support IPR awareness workshops/seminars for sensitising and disseminating awareness about Intellectual Property Rights among various stakeholders especially in the E&IT sector.Fiscal Incentives: This startup scheme by Indian government provides a capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing. It also provides for reimbursements of CVD/ excise for capital equipment for the non-SEZ units. For some of the high capital investment projects like the scheme provides for Central Taxes and Duties reimbursement of Central Taxes and Duties.Time Period: N/ATo apply online, one can click here.Startup Scheme 6: Scheme to Support IPR Awareness Seminars/Workshops in E&IT SectorIndustry Applicable: IT services, analytics, enterprise software, technology hardware, Internet of Things, AI.Eligibility: This startup scheme by the Indian government is eligible for educational institutes and industry bodies like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc., DeitY Society(ies) or DeitY Autonomous Body(ies). It is mandatory that the organisation should be registered with the Central Plan Scheme Monitoring System (CPSMS) portal, in order to apply for support for IP Awareness Workshop(s)/Seminar(s).Overview: The scheme provides IP (Intellectual Property) awareness workshops and seminars and funding grants.Fiscal Incentives: The organisations are provided with a grant of INR 2 Lakhs to INR 5 Lakhs. This includes educational institutes – INR 2 Lakhs, industry bodies – INR 3 Lakhs and DeitY Society(ies) or DeitY Autonomous Body(ies) – INR 5 Lakhs.Time Period: The scheme is valid upto 30.11.2019.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 7: NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)Industry Applicable: Chemicals, technology hardware, healthcare & lifesciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & Beverages, pets & animals, textiles & apparel.Eligibility: The parent institution should have requisite expertise and infrastructure. This includes a minimum dedicated space of about 5,000 square feet to establish a NewGen IEDC, library, qualified faculty, workshops, etc.Overview: The NewGen IEDC is being promoted in educational institutions to develop an institutional mechanism to create an entrepreneurial culture in S&T academic institutions and to foster techno-entrepreneurship for generation of wealth and employment by S&T persons. As of now, there are total 40+ EDCs and 35 IEDCs in different states.Fiscal Incentives: The NSTEDB startup scheme by the Indian government will provide a limited, one-time, non-recurring financial assistance, up to a maximum of INR 25 Lakhs. Also, non-recurring grants would be provided for supporting working capital cost.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 8: The Venture Capital Assistance SchemeIndustry Applicable: AgricultureEligibility: Assistance under this scheme by Indian government will be available to individuals, farmers, producer groups, partnership/proprietary firms, self-help groups, companies, agri-preneurs, units in agri-export zones, and agriculture graduates individually or in groups for setting up agri-business projects. For professional management and accountability, the groups have to preferably form into companies or producer companies under the relevant Act.Overview: Venture Capital Assistance is financial support in the form of an interest-free loan provided by the SFAC to qualifying projects to meet the shortfall in capital requirements for implementation of the project. The Scheme was implemented during 2012-17 in the XII Plan. SFAC has formed tie-ups with 41 banks to provide financial support.Fiscal Incentives: The quantum of SFAC Venture Capital Assistance will depend on the project cost and will be the lowest of the following:- 26% of the promoter’s equity.- INR 50 Lakhsfor projects located in North-Eastern Region, Hilly States (Uttarakhand, Himachal Pradesh, Jammu & Kashmir) and in all cases in any part of the country where the project is promoted by a registered Farmer Producers Organisation, the quantum of venture capital will be the lowest of the following:- 40% of the promoter’s equity.- INR 50 LakhsTime Period: This startup scheme is valid for the period between 2012-2017.To know more about this startup scheme by the Indian Government, click here.Startup Scheme 9: Credit GuaranteeIndustry: Sector-AgnosticEligibility: The scheme is applicable for new and existing Micro and Small Enterprises engaged in manufacturing or service activity excluding retail trade, educational institutions, agriculture, self-help groups (SHGs), training institutions, etc.Overview: The scheme was launched by the Indian government to strengthen the credit delivery system and facilitate the flow of credit to the MSE sector. Lending institutions majorly included public, private, foreign banks along with regional rural banks, and SBI and its associate banks.Fiscal Incentives: Both term loans and/or working capital facility up to INR 100 Lakhs per borrowing unit are being provided. The guarantee cover provided is up to 75% of the credit facility up to INR 50 Lakhs (85% for loans up to INR 5 Lakhs provided to micro enterprises, 80% for MSEs owned/operated by women and all loans to NER including Sikkim) with a uniform guarantee at 50% for the entire amount if the credit exposure is above INR 50 Lakhs and up to INR 100 Lakhs.Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.Startup Scheme 10: Performance & Credit Rating SchemeIndustry Applicable: Sector-agnosticEligibility: MSMEs registered in India are eligible to apply under this scheme. In May 2017, the guidelines were revised which stated that a unit with a turnover of INR 1 Cr or above will be eligible under the scheme. Now the case of rating needs to be recommended by a bank or NBFC.Overview: The scheme aims to create awareness about the strengths and weaknesses of small-scale industries. It was formulated by the Ministry of MSME under the Indian government in consultation with various stakeholders i.e. Small Industries Associations & Indian Banks’ Association and various rating agencies viz. CRISIL, ICRA, Dun & Bradstreet (D&B) and ONICRA.Fiscal Incentives: The incentives are proportional to the turnover of the MSMEs. For instance, up to INR 50 Lakhs, 75% of the rating fee or INR 25,000 (whichever is less) will be contributed under the scheme. For turnover above INR 50 Lakhs to INR 200 Lakhs, 75% of the fee or INR 30,000 (whichever is less) while for turnover more than INR 200 Lakhs, 75% of the fee or INR 40,000 (whichever is less).Time Period: N/ATo know more about this startup scheme by the Indian Government, click here.And there are 40 more startup schemes that you should know about if you’re operating a business in India.P.S. - You can also download this FREE eBook: 49 Startup Schemes By Indian Government to gain in-depth information about all the active startup schemes.To keep track of what’s happening in the Indian startup ecosystem, visit: Inc42 Media - Your Gateway To The Indian Startup Ecosystem