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

The GENESIS scheme actively seeks, supports, nurtures, and accelerates innovative startups located in Tier-2 and Tier-3 cities, Read More... promoting inclusivity and affordability. Read less

Details

In a bid to boost the startup ecosystem beyond major metros, the Ministry of Electronics and Information Technology (MeitY) has launched a significant initiative called GENESIS. This scheme is designed to specifically help startups in Tier-2 and Tier-3 cities thrive.

What Is This Scheme?

GENESIS, which stands for Gen-Next Support for Innovative Startups, is a comprehensive program by MeitY. It aims to find, support, and grow promising startups by encouraging collaboration between startups, the government, and corporate bodies. The core idea is to promote digitisation that is inclusive, accessible, and affordable, ultimately creating more jobs and boosting the economy.

Who Can Benefit From This Scheme?

This scheme is for a wide range of individuals and organisations involved in innovation. This includes students, faculty members, academic institutions, aspiring entrepreneurs, existing startup companies, incubators, accelerators, mentors, investors, and corporations focused on innovation-driven growth.

Why This Scheme Is Important

GENESIS consolidates existing MeitY schemes to make support more efficient and effective. It focuses on providing crucial funding for startups in smaller cities, supporting them from the idea stage through to early-stage and deep-tech development. The scheme also aims to build a strong community around startups through workshops and events, aligning with MeitY’s major initiatives like India AI and India Stack.

Objective

The GENESIS scheme actively seeks, supports, nurtures, and accelerates innovative startups located in Tier-2 and Tier-3 cities, promoting inclusivity 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

Eligibility Criteria

The GENESIS scheme has specific eligibility criteria for both Implementing Agencies (IAs) and the startups themselves.

For Implementing Agencies (IAs):

The applicant must be a legal entity and registered under Section 8 of the Companies Act.
Alternatively, it can be a society registered under the Societies Registration Act, 1860.
It could also be a trust registered under the Indian Trusts Act, 1882.
A statutory body created through an Act of the legislature is also eligible.
Recognised incubators, accelerators, or educational institutes by UGC/AICTE, or those formed under a Central/State Act, can apply.
Any entity actively involved in supporting startups within the ecosystem can be an IA.

For Startups:

The startup must be a beneficiary of MeitY Schemes or registered with MeitY Startup Hub (MSH).
It must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT).
At the time of application, at least 51% of the shareholding by Indian promoters is mandatory, as per the Companies Act, 2013.
The startup must have a full-time Chief Executive Officer (CEO).
For certain categories, the startup should have market-ready products and be seeking funds for business development and commercialisation.

How To Apply

The GENESIS scheme is implemented through approximately 50 Implementing Agencies (IAs), with a preference for those located in Tier-2 and Tier-3 cities. Startups looking to benefit from the scheme will typically apply through these IAs.

For detailed information on the application process, specific guidelines, and to find a list of Implementing Agencies, interested applicants are advised to visit the official MeitY Startup Hub portal:

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

For direct queries, you can reach out to:

Email: [email protected]
Phone: 011-24301244
Office Address: MeitY Startup Hub, 2044, Electronics Niketan, 6, CGO Complex, Lodhi Road, New Delhi – 110003.

Documents Required

The documents needed depend on whether you are applying as an Implementing Agency or a Startup.

For Implementing Agencies:

Proof of Registration: Certificate for Section 8 Company, Society Registration (Societies Registration Act, 1860), Trust Deed (Indian Trusts Act, 1882), or Statutory Notification.
Recognition Certificate: If applying as an educational institute, a recognition certificate from UGC or AICTE is required.
Proof of Startup Support: Evidence of past engagement in supporting startups, like details of incubation or acceleration programs run.

For Startups:

DPIIT Registration Certificate: Mandatory registration with the Department for Promotion of Industry and Internal Trade.
MSH/MeitY Scheme Registration: Proof of being registered with MeitY Startup Hub or being a beneficiary of a MeitY Scheme.
Incorporation/Registration Documents: Certificate of Incorporation or other relevant registration documents for the startup.
Shareholding Pattern Document: Evidence showing at least 51% Indian promoter shareholding as per the Companies Act, 2013.
CEO Proof: Appointment Letter or other proof of a full-time Chief Executive Officer.
Product Readiness Document: For categories requiring market-ready products, documentation demonstrating market readiness is needed.
Matching Funds Proof: For Investment Support, proof of 1:1 matching funds from the private sector is required.

FAQ’s

What is the main goal of the GENESIS scheme?

The primary goal of the GENESIS scheme is to find, support, and grow innovative startups, especially those located in Tier-2 and Tier-3 cities across India. It aims to foster digitisation through inclusive, accessible, and affordable solutions, leading to job creation and economic growth.

Who can apply to be an Implementing Agency under GENESIS?

Implementing Agencies can be legal entities like Section 8 companies, societies registered under the Societies Registration Act, trusts registered under the Indian Trusts Act, or statutory bodies. Recognised incubators, accelerators, and educational institutes by UGC/AICTE are also eligible, as are other entities actively engaged in startup support.

How much funding can a startup receive under the Investment Support category?

Under the Investment Support component, startups can receive an average funding of ₹40,00,000, with a maximum cap of ₹50,00,000 per startup. Importantly, this category requires a 1:1 matching fund from the private sector.

Does the GENESIS scheme have a specific focus on geography?

Yes, the GENESIS scheme places a strong emphasis on Tier-2 and Tier-3 cities. It aims to develop and nurture a vibrant startup ecosystem in these locations, ensuring wider participation and economic benefits beyond the major metropolitan areas.

What is the total budget allocated for the GENESIS scheme?

The GENESIS scheme has a significant total budget outlay of ₹4,90,00,00,000/- (₹490 Crore). This fund is allocated for a duration of 5 years to support the scheme's objectives.

Which government ministry is behind the GENESIS scheme?

The GENESIS scheme is an initiative of the Ministry of Electronics and Information Technology (MeitY), Government of India. It is implemented through the MeitY Startup Hub (MSH).

Can startups from any stage apply for support under GENESIS?

Yes, GENESIS offers support across different stages. There is Ideation Support (EiR) for early-stage startups, Pilot (Proof-of-Concept) Support, Investment Support for growth, and dedicated support for Deep-tech startups. This ensures that startups at various phases of their development can find relevant assistance.

What are the key requirements for a startup to be eligible?

To be eligible, a startup must be registered with DPIIT, be a beneficiary of a MeitY scheme or registered with MSH, have at least 51% Indian promoter shareholding, and possess a full-time CEO. For certain funding categories, market-ready products and funds for commercialisation are also necessary.

Are there any non-monetary benefits provided by the GENESIS scheme?

Absolutely. Beyond funding, GENESIS offers a unified platform for MeitY schemes, assistance with challenge execution, building corporate and institutional partnerships, capacity building, and community development initiatives to strengthen the startup ecosystem.

How many startups does GENESIS aim to support?

The scheme has ambitious targets. It aims to impact and consolidate over 10,000 tech startups throughout its 5-year operational period, paving the way for a more robust and inclusive startup landscape in India.