If you are preparing to start a new business and you do not have money for it and at the same time you are facing the trouble of taking a loan, then you do not need to worry. To start a new business, you can take a “Start-Up Business Loan By Indian Government“. Underneath the Government Business Loan Scheme, loans are given primarily to micro, small, and medium businessmen and other important institutions.
There are various government business loan schemes and modern traders can avail the best loan for themselves through various online portals. Let us tell you further what are the types, features, and eligibility of taking a business loan by the Government of India.
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Start-Up Business Loan By Indian Government
There are many popular business startup loan plans that the government offers to new businesses. Following are the qualities and benefits of the most useful government loan schemes for starting a business:
1. Mudra Loan
The government has launched this scheme to deliver financial help to non-corporate, non-farm small, and medium businesses. Mudra loans can be taken from private and public sector banks, commercial banks, regional rural banks (RRBs), small finance banks, and corporate banks. Interested applicants may contact any of the above-mentioned institutes or apply online through the official website of MUDRA. Start-Up Business Loan By Indian Government.
Eligibility: Proprietorship / Enterprise firms in rural and urban areas who are non-corporate small businesses can apply for this loan. Following are some examples of NCSBs:
- Small manufacturing units
- Service sector units
- Fruit/Vegetable seller
- Truck operator
- Foodservice units
- Repair shops
- Machine operator
- Small scale industries
- Food processors and others
Units in all kinds of manufacturing, trading, and service sectors can avail of MUDRA loans.
Fiscal Incentives: MUDRA offers incentives through:
Shishu: Loan: Rs.50,000 So far
Kishor: Loan: Rs.50,000 5 lakh to Rs. So far
Tarun Loan: Rs.5 lakh 10 lakh to Rs. So far
2. Stand-up India
Governed by the Small Industries Development Bank of India (SIDBI), Stand Up India was launched to provide funding to SC/ST category and women entrepreneurs. 10 lakh per bank branch to at least one SC/ST entrepreneur and one woman entrepreneur under this scheme. 1 crore from Rs. Provides loan up to Rs.
Start-Up Business Loan By Indian Government Eligibility: Business, manufacturing, or service sectors are considered qualified for this scheme. In businesses where ownership rights are held by more than one person, a minimum of 51% stake should be held by an SC/ST or women entrepreneur.
- Under this, 75% cover of the project is given under term loan and working capital, for which Rs.10 lakh is given. 1 crore from Rs. the loan is given.
- The lowest applicable rate of interest will be – (Base Rate (MCLR)) + 3% + Tenure Premium
3. PSB Loan in 59 Minutes
On November 5, 2018, the Prime Minister, in just 59 minutes, Rs 5 crore for Startup Businesses and MSMEs. A digital platform for providing loans up to Rs. The government had started this business loan scheme to provide financial assistance to Micro, Small, and Medium Enterprises (MSMEs) across India. Following are some of the features of this facility:
- Receive faster funding: Usually, it takes around 7-10 days to complete such loan processes. However, the loan approval process takes only 59 minutes.
- Loan Amount: The loan amount provided underneath this loan ranges from Rs 1 lakh to Rs 5 crore.
- Interest Rate: The rate of interest applicable under this scheme is 8.50%.
- Quick disbursal: Once the loan is authorized in an hour, you can expect the funds to get to your bank account in 7-8 working days.
Guarantee-free loan: For availing loan, no guarantee is mandatory as the online portal is directly linked with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
4. Subsidy from (NSIC) National Small Industries Corporation.
Start-Up Business Loan By Indian Government provides assistance to small businesses under the National Small Industries Corporation Subsidy (NSICS) with a focus on two financial aids – marketing support and raw material support.
Cost-Free Tenders: Under the Marketing Assistant Program, Small Businesses (SSIs) will get access to tenders at no cost.
No Security Deposit Required: SSI (Small Businesses) do not need any guarantee or pledge to get the loan.
Land and Building Finance: The project cost of SSI (Small Business) is Rs.25 lakhs. should not be more than This scheme provides financial facility for the Department of Lands and Buildings.
5. SIDBI Make in India Soft Loan Fund for MSME (SMILE)
Launched in the year 2015, SMILE is operated by the Small Industries Development Bank of India (SIDBI). The objective of the scheme is to provide soft loans for development to existing ones to meet the loan-equity ratio required for setting up new MSMEs. The interest rate applicable under this scheme is 8.36%. Start-Up Business Loan By Indian Government.
Eligibility: Existing and new businesses in the manufacturing and service sector can apply for this scheme. This loan can be availed to develop your business, upgrade or initiate other projects. The maximum tenure of the loan is 10 years which includes the moratorium period of 36 months.
- The minimum loan amount given under the SMILE scheme is Rs.25 lakh. Is.
6. Credit Guarantee Scheme (CGS)
The ( CGTMSE ) Credit Guarantee Fund Trust for Micro and Small Enterprises scheme was launched by the government to strengthen and facilitate the loan delivery system to the MSME sector. Public, private, and foreign banks, as well as regional rural banks (RRBs) and SBI along with their associate banks, are among the leading institutions under the Start-Up Business Loan By Indian Government scheme.
Eligibility: Retail trade, educational institutions, agriculture, manufacturing, or service sector except for self-help groups (SHGs), and existing MSMEs, training institutes are eligible for this scheme.
Fiscal Incentives: Given are some of the features of this scheme:
- 2 crore in this scheme of MSME for entrepreneurs. The term loan and working capital loan facility are available up to Rs.
- The guarantee cover provided is up to 75% subject to a maximum of Rs.1.5 crore. Till then
- Small businesses are provided a cover of up to 85% which is Rs.5 lakh. Till then
- For MSME retail trade, the default guarantee cover is 50% subject to a maximum of Rs.50 lakhs.
How To Register For Loan Schemes?
- Go to the official online portal of the bank linked to the scheme.
- Register on the portal and log in through One-time Password (OTP) verification.
- Check-in by agreeing to the terms and conditions of the Government Loan Scheme.
- Enter your financial and other required information.
- Fill the form and upload the required documents and continue the process.
Start-Up Business Loan By Indian Government | Eligibility
The eligible applicant for this scheme must have all the information and documents given below:
- Applicant’s age
- Loan amount
- Business type
- Credit score
- Annual turnover
- Original investment
Start-Up Business Loan By Indian Government is given to businessmen, start-up industries, partnership firms, SMEs, MSMEs, private limited companies, large enterprises, etc. The minimum age to apply for a government business loan is 18 years. The applicant should have a minimum of 2 years of business experience for the loan. A minimum credit score of above 650 is required for loan approval.
Start-Up Business Loan By Indian Government | Required Documents.
The documents required for these government schemes may differ from one scheme to another. However, we have listed below the documents required for a Start-Up Business Loan By Indian Government:
- Passport size photo
- business plan
- Identity, Age, Address, and Income Certificate
- GST identification number
- Information about income tax paid in the last 3 to 5 years
- Bank statement of last 6 months
- business address proof
- ITR of last 2 years
- Loan information of your choice
- List of Company Directors or Partners of the Company/Partnership Firm
- KYC: All the documents used for this have to be given by the applicant.
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