‘Ease lending norms for start-ups’

Gurumurthy K | Updated on January 12, 2018 Published on January 29, 2017

Antony, Founder of start-up firm Fashionous

The present government is keen to promote more start-ups in the country. So what does a start-up expect from this Budget?

Antony, Founder of start-up firm Fashionous, says, “more tax incentives to start-ups may create a good social impact. It will also be an opportunity to enhance employment and provide income opportunities for a wide range of people.” He suggests that more individuals have to be motivated to invest in start-ups by providing tax exemptions (similar to deduction under Section 80D) for such investments. Getting a business loan from banks is something next to impossible at the moment for a start-up, laments Antony.

“Banks requires companies to provide Income Tax returns for a minimum period of three years and they expect companies to have been profitable for three years. So, as a new entrant to the market who might and will need financial assistance during the initial phase, the formal banking channel is practically shut for a start-up,” says Antony. He also suggests that since banks are now flush with cash after demonetisation, at least the public sector banks can devise some special loan products for start-ups.

He also feels that schemes like Stand-Up India which cover women entrepreneurs and some specific sections of people should be extended to cover at least all the first-generation entrepreneurs, if not the entire start-up community.

Published on January 29, 2017
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