Scheme Of Assistance To Good Borrowers: ‘A’ Category 2026

The GENESIS scheme aims to discover, support, grow, and accelerate innovative startups located in Tier-2 and Tier-3 Read More... cities, focusing on inclusivity, accessibility, and affordability. Read less

Details

The Indian government, through the Ministry of Electronics and Information Technology (MeitY), has launched an ambitious initiative called GENESIS (Gen-Next Support for Innovative Startups). This scheme is designed to give a major boost to startups, especially those operating from Tier-2 and Tier-3 cities. It promotes a collaborative approach involving startups, government bodies, and corporate players to drive digital innovation that is accessible, affordable, and inclusive.

What Is GENESIS?

GENESIS is a comprehensive program focused on nurturing innovation-based growth. It provides crucial support in various forms, including financial aid for pilot projects, early-stage ventures, and deep-tech innovations. Beyond funding, it offers mentorship, capacity building, and helps connect startups with the broader ecosystem, including corporates and investors. The scheme is implemented by the MeitY Startup Hub (MSH) and seeks to empower students, faculty, entrepreneurs, and existing companies to thrive.

Who Can Benefit From GENESIS?

This scheme is a boon for a wide range of participants in the startup ecosystem. It aims to support students, academic institutions, budding entrepreneurs, established startup companies, incubators, accelerators, mentors, investors, and corporates who are actively involved in innovation and wish to contribute to economic growth. A key focus is on developing the startup landscape in Tier-2 and Tier-3 cities.

Why GENESIS Is Important

The primary goal of GENESIS is to consolidate MeitY's existing startup support systems, making them more efficient and impactful. It specifically aims to provide much-needed funding to startups in smaller cities, helping them develop their initial products (pilot/proof-of-concept) and scale up their businesses. The scheme also focuses on building a strong community of innovators through workshops and events, aligning with major national initiatives like India AI, ISM, and India Stack.

Objective

The GENESIS scheme aims to discover, support, grow, and accelerate innovative startups located in Tier-2 and Tier-3 cities, focusing on inclusivity, accessibility, and affordability.

Benefits

Financial assistance is available for a minimum amount of ₹5,00,000/- and a maximum amount of ₹150,00,000.

An interest concession of 1% less than the normal rate is provided for 'A' Category borrowers.

The loan funds are intended to be used to acquire fixed assets for setting up of new units.

The loan funds are intended for expansion, modernization, purchase of balancing equipment, and replacement of machinery or equipment of existing units.

The repayment period is 3 to 5 years, excluding the moratorium period.

Conditions

Fixed assets in existing units assisted by other institutions or banks must be free from encumbrance.

Collateral security in the form of immovable property must be offered as per the lending policy of the Corporation.

The value of immovable property situated in the Union Territory of Puducherry to be offered shall be not less than the amount of term loan sanctioned.

If the immovable property is situated outside the Union Territory of Puducherry, the value must be not less than 150% of the loan amount in the case of land with building.

If the immovable property situated outside the Union Territory of Puducherry is only land, the value of the same shall be not less than 200% of the loan amount.

Sources and references

Scheme Information

Who Can Apply?

The GENESIS scheme has specific eligibility criteria for both the organizations that will implement the scheme (Implementing Agencies) and the startups that will receive support.

Eligibility for Implementing Agencies (IAs):

The applicant must be a legally registered entity.
Eligible entities include:

Organizations registered under Section 8 of the Companies Act.
Societies registered under the Societies Registration Act, 1860.
Trusts registered under the Indian Trusts Act, 1882.
Statutory bodies established by a legislative Act.
Incubators, Accelerators, or Educational Institutes recognized by UGC/AICTE or formed under a Central/State Act.
Any other entity actively involved in supporting the startup ecosystem.

Eligibility for Startups:

Must be a beneficiary of MeitY Schemes or registered with MeitY Startup Hub (MSH).
Must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT).
At least 51% of the shareholding must be held by Indian promoters at the time of application, as per the Companies Act, 2013.
Must have a full-time Chief Executive Officer (CEO).
Must possess market-ready products and be seeking funds for business development and commercialization (this applies to specific funding categories).

How To Apply

The application process and selection of implementing agencies and startups are managed by the MeitY Startup Hub (MSH). Aspiring applicants should refer to the official MSH portal for detailed guidelines, application forms, and deadlines.

Key Steps:

Interested Implementing Agencies and Startups need to regularly check the official MeitY Startup Hub website for announcements regarding application openings.
Download the relevant application form and thoroughly review all instructions and eligibility requirements.
Submit the complete application along with all the necessary documents as specified.
Applications will be evaluated by experts based on a defined and structured selection process.

For more information and to apply, please visit:

https://msh.meity.gov.in/

Documents Required

Applicants must be prepared to submit specific documents to prove their eligibility for the GENESIS scheme.

For Implementing Agencies:

Proof of Registration: Certificate of Registration (for Section 8 Company, Society, Trust, or Statutory Body).
Recognition Certificate: If applying as an Educational Institute, proof of recognition from UGC or AICTE.
Proof of Engagement: Documents showing involvement in supporting startups, such as details of past incubation or acceleration programs.

For Startups:

DPIIT Registration Certificate.
MeitY Startup Hub (MSH) Registration Certificate or proof of being a MeitY scheme beneficiary.
Certificate of Incorporation or Registration documents of the startup.
Shareholding Pattern Document: Showing at least 51% Indian promoter shareholding (as per Companies Act, 2013).
CEO Appointment Proof: Letter or document confirming the full-time CEO.
Product/Market Readiness Proof: For categories requiring market-ready products, evidence of the product's status.
Proof of Matching Funds: Required only for the Investment Support component, demonstrating a 1:1 private sector match.

FAQ’s

What is the main aim of the GENESIS scheme?

The GENESIS scheme aims to discover, support, grow, and accelerate successful startups, with a special focus on those located in Tier-2 and Tier-3 cities. It promotes digital innovation through collaboration and aims for inclusive, accessible, and affordable solutions.

What kind of financial support can startups expect under GENESIS?

Startups can receive financial support under four categories: Ideation Support (up to ₹10 Lakhs), Pilot Support (up to ₹50 Lakhs), Investment Support (up to ₹50 Lakhs with a 1:1 private match), and Deep-tech Startup Support (up to ₹1 Crore).

Is there a specific geographic focus for the GENESIS scheme?

Yes, the GENESIS scheme has a strong emphasis on supporting startups in Tier-2 and Tier-3 cities across India. The goal is to foster a nationwide inclusive startup ecosystem.

What is the total budget allocated for the GENESIS scheme?

The total budgetary outlay for the GENESIS scheme is ₹4,90,00,00,000/- (₹490 Crore) for a period of 5 years.

Are there any non-monetary benefits provided under GENESIS?

Absolutely! GENESIS offers a startup platform, support for challenge execution, corporate and institutional partnerships, capacity building, performance optimisation, and community-building initiatives.

Does the Investment Support component require startups to bring their own funding?

Yes, for the Investment Support component, startups need to secure a 1:1 matching fund from the private sector. This means for every rupee provided by the government, an equal amount must come from private sources.

What types of organizations can act as Implementing Agencies (IAs) for GENESIS?

Implementing Agencies can be Section 8 Companies, registered Societies, Trusts, statutory bodies, or recognized Educational Institutes (like Incubators, Accelerators) that are engaged in supporting startups.

What is the minimum Indian promoter shareholding required for a startup to be eligible?

To be eligible, a startup must have at least 51% shareholding held by Indian promoters at the time of application, in accordance with the Companies Act, 2013.

How many startups does the GENESIS scheme plan to support?

The program aims to impact and consolidate over 10,000 tech startups during its 5-year tenure, paving the way for a robust startup ecosystem.

Where can I find the official application portal or more contact details for GENESIS?

You can find detailed information, updates, and the application portal at the official MeitY Startup Hub website: https://msh.meity.gov.in/. For queries, you can email [email protected] or call 011-24301244.