Suppose you’ve created a Business Project after a lot of research by giving best of your effort, which may consider as master plan. But the most important thing you will worry about now is funding or loans.
Before we start any kind of capital required business, the first thing that strikes us is where to get funding from? Or how can I get loan?
There are lots of Government Business Loan Scheme available in India covering almost each & every category to support their citizens.
To fulfil our various kind of requirements either business purpose or personal, we often borrow from banks at higher rate of interests due to lack of information. While there are many Government Loan Schemes available at lower rate of interest for our convenience.
Don’t’ worry, Read this BLOG & know all about Government Loan Schemes in Details:
Government Business Loan:
You will always need a consistent cash flow, regardless of whether you want to bootstrap a start-up or grow your current business. This is where business loans or corporate loans come into play, and a business loan can assist you in obtaining the necessary capital for your company. Considering the recent spike in fintech in the nation, many private lenders are eager to provide business loans, but the Indian government also offers a variety of lending programs to business owners through its various agencies. Government agencies provide business owners with loans at competitive interest rates and frequently even without any type of collateral.
About Government Business Loan:
There are around 40 million registered and unregistered Micro Small and Medium Enterprises (MSMEs) in India. MSMEs can be classified as belonging to either the organized or unorganized sectors. These MSMEs continue to be an important source of employment and generate around 40% of India’s overall GDP. Critical national problems including poverty, unemployment, income inequality, regional imbalances, etc. are addressed by MSMEs. The government has introduced a number of programs to provide loans to MSMEs in order to strengthen their businesses and economies. A loan can be obtained by the business owners of these MSMEs through any of the programs that best meet their needs.
Government Business Loan Objective
Micro, Small and Medium Enterprises (MSMEs) and other business enterprises can access capital through business loan programs that the Indian government has established. Depending on their demands, entrepreneurs can choose from a variety of financing programs. Business entities have the option of selecting the optimal credit program for their needs. The majority of these programs are now accessible online thanks to the government of India’s advancements in digital technology. The primary goal of Government Business Loan programs is to provide funding assistance to business owners for their ongoing operations. They are designed expressly to meet the requirements of businesses.
Top 6 Government Business Loan Scheme
Some of the top Government Business Loans offered by the Indian Government are as follows:
- MSME Loan Scheme
- MUDRA Loan
- Credit Guarantee Fund Scheme
- National Small Industries Corporation Subsidy
- SIDBI Loan
MSME Loan Scheme
|Category of Loan
|Up to Rs. 50,000
|50,000 to 5,00,000
|5,00,000 to 10,00,000
Eligibility Criteria for MUDRA LoanAny company may apply for a loan under this program, including proprietary enterprises, partnership firms, Private Ltd., Public Companies, and other legal entities
Credit Guarantee Fund Scheme
Eligibility Criteria for Credit Guarantee Fund SchemeThe organizations engaged in manufacturing, such as retailers, educational institutions, self-help organizations, and training facilities. Additionally, companies in the service sector are also eligible to apply for funding under this loan program.
National Small Industries Corporation Subsidy
- Marketing Support Scheme: The Marketing Support Scheme helps any business flourish by coming up with plans like Consortia and Tender Marketing. A program like this is essential since MSMEs need assistance to expand in the current cutthroat economy.
- Credit Support Scheme: The NSIC offers finance to MSMEs through bank syndication for raw material procurement, marketing activities, and financing.
In order to meet the funding requirements of businesses in the MSME sector, SIDBI, or the Small Industries Development Bank of India, was established in 1990. SIDBI offers indirect lending programs to NBFCs (Non-Banking Financial Companies) and SFBs (Small Finance Banks) in addition to direct loan programs to MSMEs. The loan term may be up to 10 years, and the loan amount may range from 10 Lakhs to 25 Crores. You can obtain loans up to Rs. 1 crore without putting up any security.
The bank’s different lending programs, such as SIDBI-lending for Purchase of Equipment for Enterprise Development (SPEED), SIDBI Make in India Soft Loan Fund for MSME (SMILE), Smile Equipment Finance (SEF), and others, allow MSMEs to apply for loans. Each loan plan has a different loan tenure, loan amount, and eligibility requirements. Numerous lending institutions now provide special loan products for MSMEs because the number of MSMEs is consistently increasing in India. You can apply for a SME loan for your company at Bajaj Markets, where the interest rates are competitive. You may quickly apply for SME loans through the Bajaj Markets app, and you can even find pre-approved deals there.
Udyogini Scheme for Women
A program called Udyogini, which means “women empowerment,” has been started to empower Indian women. The Women Development Corporation, on behalf of the Government of India, launched the Udyogini Scheme for Women Entrepreneurs. The cash provided under this program is given to assist women in obtaining the capital they need to launch a business. Under this program, a loan can only be given up to Rs. 15,00,000. A woman entrepreneur must be between the ages of 18 and 55 in order to be eligible to apply for this program, and her family’s annual income cannot exceed Rs. 15,00,000.
Women who are physically disabled or widowed have no income restrictions. For a loan to be obtained under this plan, there is no processing charge or requirement for collateral. In order to be eligible for the loan, women must provide passport-sized photos, birth certificates, Below Poverty Line Cards, Aadhar Cards, Caste Certificates, passbooks or bank accounts, ration cards, and income documentation. Qualified women can apply for loans for the 88 different types of enterprises listed.
Hope you benefited from the given information in this blog.