Providing much needed financial aid to young entrepreneurs, the UK government recently launched a scheme worth £82.5 million. This staggering amount will be given away in the form of loans to make young businesses a success.
The StartUp Loans project proposed by business tycoon Sir Richard Branson is aimed at tackling rising unemployment rates in the UK. In a bid to increase the number of successful new businesses in the region, the government announced this grand scheme to entrepreneurs aged between 18 and 24.
Apart from financial help, budding entrepreneurs will also receive valuable mentoring and guidance from industry veterans. The helpful advice and training will also be used to develop workable business plans. Businesses with robust approved plans will then be eligible for the scheme with loans upto £2,500.
The maximum limit for repayment is set at five years and the interest rate is fixed according to the RPI (Retail Price Index) with an additional three per cent. The repayments and the additional interest amount will be channelled back into the scheme to support other start-ups and young entrepreneurs.
British PM David Cameron commenting on the StartUp Loan scheme said that the government is trying to establish as many viable businesses for young entrepreneurs with big goals. From this financial year, the scheme will take off with a pilot project of £10 million.
If the StartUp Loan scheme proves successful, the scheme will be supported by an additional £32.5 million in 2013/ 2014 and another £40 million in 2014/ 2015.