Quick Answer
Get up to ₹40 Lakhs in Equity-Free Funding • Zero Dilution • Direct Application Links
How This Guide Was Prepared
This guide was prepared by the Naraway editorial team using founder execution patterns, public market references, and practical operating experience from startup support work. It is designed to help readers make better decisions, not to manipulate search rankings.
Last reviewed: May 2026. Publisher: Naraway. Review focus: clarity, usefulness, factual consistency, and founder actionability.
Why Government Funding Matters for Your Startup
In 2026, the Indian government has allocated over ₹10,000 crores across various schemes to support startups. Unlike VC funding, government grants are equity-free—meaning you don't dilute ownership. This guide lists the top 10 schemes with direct application links, eligibility criteria, and funding amounts.
Who should apply: Early-stage startups, women entrepreneurs, SC/ST founders, tech startups, and MSME businesses.
1. SISFS - Startup India Seed Fund Scheme
SISFS is the largest government seed funding scheme in India, designed to provide financial assistance for proof of concept, prototype development, product trials, and market entry. get your startup legally registered before your next investor conversation with Naraway
✅ Eligibility Criteria
- Startup must be DPIIT-registered
- Incorporated not more than 2 years ago
- Should have an innovative business idea with market fit
- Technology-driven product or service
- Indian promoters must hold at least 51% equity
- Should not have received more than ₹10 lakh from other government schemes
💰 What You Get
- ₹20 Lakhs as Grant: For proof of concept, prototype development, product trials (non-repayable)
- ₹50 Lakhs as Investment: Via convertible debentures or debt for market entry and scaling
- Support provided through 300+ accredited incubators across India
- No collateral or personal guarantee required
📝 How to Apply
Step 1: Get DPIIT Recognition at startupindia.gov.in
Step 2: Apply through eligible incubators at seedfund.startupindia.gov.in
Step 3: Incubators select startups based on potential and provide funding
2. GENESIS EIR - Gen-Next Support for Innovative Startups
GENESIS EIR (Entrepreneur-in-Residence) supports tech startups in smaller cities with funding, mentorship, and infrastructure to validate and scale innovative ideas.
✅ Eligibility Criteria
- Indian citizen, 18+ years old
- Full-time UG/PG student with entrepreneurial pursuits OR founder of DPIIT-registered startup (≤ 2 years old)
- First-generation entrepreneur
- Startup in ideation, validation, or early stage
- Total external funding not exceeding ₹10 lakh
- Focus on tech domains: AI/ML, IoT, Blockchain, VLSI, Cybersecurity, AR/VR
- Registered in Tier 2 or Tier 3 city (preference)
💰 What You Get
- ₹10 Lakhs Grant: For prototype development, market research, customer validation
- ₹40 Lakhs Pilot Funding: For startups with market-ready products
- Mentorship from industry experts
- Access to state-of-the-art labs and co-working spaces
- Networking with investors and corporates
📝 How to Apply
Apply through MeitY-approved incubators like:
- IIT Kanpur (SIIC): siicincubator.com
- IIT Hyderabad (iTIC): itic.iith.ac.in
- Amrita TBI: amritatbi.com
3. SAMRIDH - Startup Accelerator of MeitY
SAMRIDH accelerates product-based IT startups by providing funding, customer connections, investor introductions, and international market access. Naraway helps founders get their startup registered and investor-ready from day one
✅ Eligibility Criteria
- DPIIT-registered Indian startup
- Working MVP/POC with minimum TRL 3 (Technology Readiness Level)
- Product-based software/electronics startup
- Indian promoters hold at least 51% equity
- Full-time CEO and market-ready product
- Seeking funds for business development and commercialization
💰 What You Get
- ₹40 Lakhs Investment: Through selected accelerators as matching co-investment
- 6-month intensive acceleration program
- Customer connect with corporates and PSUs
- Investor connect with VCs and angel investors
- Internationalization support for global markets
- Legal, IP, and compliance assistance
📝 How to Apply
Apply through MeitY-approved accelerators running SAMRIDH cohorts.
Check current cohorts at: msh.meity.gov.in/schemes/samridh
4. Stand-Up India Scheme
Stand-Up India provides collateral-free bank loans to women and SC/ST entrepreneurs for setting up greenfield enterprises in manufacturing, trading, or services.
✅ Eligibility Criteria
- Women OR SC/ST entrepreneur (above 18 years)
- For greenfield enterprise only (first-time venture)
- In manufacturing, services, trading, or agri-allied sectors
- For non-individual enterprises: SC/ST or woman must hold at least 51% stake
- Borrower must not be a defaulter to any bank/financial institution
💰 What You Get
- Composite Loan: ₹10 lakh to ₹1 crore (85% of project cost)
- Interest Rate: Bank's lowest rate (MCLR + 3% + Tenor Premium)
- Repayment period: 7 years with 18-month moratorium
- Credit Guarantee via CGFSIL (no collateral required)
- Rupay Debit Card for easy withdrawals
📝 How to Apply
Step 1: Visit standupmitra.in
Step 2: Fill online application and upload required documents
Step 3: Apply at nearest bank branch (all scheduled commercial banks participate)
5. PMMY - Pradhan Mantri Mudra Yojana
Mudra Loan supports micro and small businesses with collateral-free loans in three categories based on business stage and funding requirements.
✅ Loan Categories & Eligibility
- Shishu: Up to ₹50,000 (for starting business)
- Kishore: ₹50,001 to ₹5 Lakhs (for growing business)
- Tarun: ₹5,00,001 to ₹10 Lakhs (for established business expansion)
- Available for manufacturing, trading, services, and agri-allied sectors
- No collateral required
💰 What You Get
- Collateral-free loans
- Flexible repayment terms (up to 5 years)
- Competitive interest rates (varies by bank)
- Can be used for working capital or equipment purchase
- Available at all public & private banks, NBFCs, MFIs
📝 How to Apply
Visit Mudra portal: mudra.org.in
Or apply directly at nearest bank branch with business plan and KYC documents.
6. Fund of Funds for Startups (FFS)
Fund of Funds doesn't invest directly in startups but provides capital to SEBI-registered Venture Capital funds, which then invest in DPIIT-recognized startups.
✅ How It Works
- Government invests in SEBI-registered Alternative Investment Funds (AIFs)
- These VCs invest in DPIIT-recognized startups
- Startups benefit from increased VC funding availability
- Focus on early-stage and growth-stage startups
💰 What You Get
- Indirect funding through participating VCs
- Access to domestic rupee capital
- ₹623 Crores committed to 17 VCs so far
- ₹245 Crores disbursed to 72 startups (catalyzing more investment)
📝 How to Benefit
Apply to VCs funded by FFS. Check list at: startupindia.gov.in
7. CGSS - Credit Guarantee Scheme for Startups
CGSS provides credit guarantees to lending institutions, making it easier for startups to get bank loans without collateral.
✅ Eligibility
- DPIIT-recognized startups
- Incorporated as Private Limited, LLP, or Partnership
- Loan requirement up to ₹5 crores
- Used for working capital or business expansion
💰 What You Get
- Government acts as guarantor for your loan
- Banks more willing to lend without collateral
- Covers 80% of loan amount in case of default
- Reduces risk for lenders, increases access for startups
8. AIM - Atal Innovation Mission
AIM promotes innovation through Atal Tinkering Labs, incubation centers, and mentorship programs for students and startups.
✅ Programs Under AIM
- Atal Incubation Centers: Grant up to ₹10 crores for incubators
- AIM-iCREST: Support for international collaboration
- Mentor India Campaign: Free mentorship from industry experts
- Focus on deep-tech, social impact, and innovation
9. NIDHI - National Initiative for Developing and Harnessing Innovations
NIDHI supports knowledge-based, technology-driven startups through proof-of-concept grants and seed support.
✅ Sub-Schemes
- NIDHI-PRAYAS: ₹10 lakh grant for prototype development
- NIDHI-SSS: ₹50 lakh seed support for early-stage startups
- NIDHI-EIR: ₹30,000/month for 12 months to aspiring entrepreneurs
- For science, tech, and knowledge-based innovations
10. State-Level Startup Schemes
Most Indian states have their own startup policies offering grants, subsidies, and incentives.
✅ Examples of State Schemes
- Uttar Pradesh (StartinUP): ₹5L prototype grant + ₹7.5L seed capital
- Karnataka: ₹50L funding through idea2PoC scheme
- Tamil Nadu: Interest subvention on loans
- Maharashtra: Reimbursement for patents, IP
- Gujarat: Subsidy on working capital loans
📝 How to Apply
Check your state's startup policy at: startupindia.gov.in/state-startup-policies
Need Help Applying for Government Grants?
Naraway helps startups secure government funding through DPIIT registration, application assistance, documentation support, and compliance guidance.
We've helped 500+ startups access ₹25+ crores in government funding.
Get Free Consultation →📞 +91 63989 24106 | 📧 info@naraway.com