Just like a nutritious diet helps our body live healthy in the long term where in business maintained cash is helpful for the future. The Indian government supports startups because these startups are the Future of India and they play a big role in GDP. That’s why to support SMEs (Small Enterprises) and MSMEs (Micro and Medium Enterprises) government of India Launched many schemes to help them grow in any stage so they can add value to India’s GDP. This business loan are intended to empower prospective entrepreneurs, spur economic growth, and generate employment.
These schemes are specifically made for SMEs and MSMEs to support them because these scheme comes with lower interest rates compared to private loans and they have longer terms with extra benefits. It is aimed at the microcredit that small businesses use to start off, finance, and grow huge corporations and the significant finance available for new business ventures. Here list of the top 5 government loan schemes for entrepreneurs.
Best government Business loan scheme for Entrepreneurs
- MSME Loan
- Pradhan Mantri MUDRA Yojana (PMMY)
- National Small Industries Corporation
- Credit Linked Capital Subsidy Scheme
- SIDBI Loan
MSME Loan
MSME Act was estabhilsed in 2006. Till today MSME loans helped over 90 Lakh+ Startups and assisted them with over amount of ₹26,000 Cr+ with the help of this amount they helped generate employment of 80 Lakhs till now! With MSME Loan you will get about ₹1 Cr loan and with an interest rate as low as 8% and it takes about approx. 8-12 days to get the amount. Also for the approval/disapproval of the application it just takes 59 Minutes (Incredibly fast)
Amount: Up to ₹1Cr
Interest Rate: As low as 8%*
Pradhan Mantri MUDRA Yojana (PMMY)
Pradhan Mantri Mudra Yojana (PMMY) is another fantastic scheme because in PMMY you’ll get a loan without collateral. This scheme is best suitable for women entrepreneurs and small traders cause this loan is without collateral and with flexible payback periods. The target customer is the small business owner who is either unbanked or underbanked.
In the MUDRA loan, the following 3 loans are offered
- Shishu MUDRA Loan – This loan scheme provides a loan of up to Rs 50,000 at the interest rate of 1 or 2% p.a.
- Kishor MUDRA Loan – This loan scheme provides a loan of up to Rs 5 lakhs at the interest rate of 8.60%-11.15% p.a.
- Tarun MUDRA Loan – This loan scheme offers loans over Rs 5 lakh up to Rs 10 lakh at the interest rate of 8.60%-11.15% p.a.
National Small Industries Corporations
NSIC supports entrepreneurs with the help of finance, marketing, as well as technology support. NSIC is one of the best government schemes for small enterprises and is very well known.
NSIC offers the below-mentioned 2 schemes-
- Marketing Support Scheme: A business can make the most of this scheme by getting marketing support via Consortia schemes, Tender Marketing, etc. This can immensely help in business promotion, marketing and expanding market reach.
- Credit Support Scheme: Under this scheme, financial assistance can be availed of for procuring raw materials, finances, marketing, etc.
Amount: Upto ₹5 Cr
Interest Rate: Between 8% to 12%
Credit Linked Capital Subsidy Scheme
It is a government subsidy loan for businesses that is a perfect match for those who need finance to fund technological advancements in industries. Here technological advancements may include marketing, supply chain, manufacturing, etc.
This scheme offers subsidized financing to firms that are looking to update their technology. All sectors of manufacturing, marketing, supply chain management, and more are eligible for this scheme. Cooperatives, private or public limited businesses, partnerships, and sole proprietorships are eligible to apply under this scheme. For business owners who wish to enhance productivity and make processes more modern, CLCSS is the best.
Subsidy Amount
General MSEs: With CLCSS General caste entrepreneurs can receive capital on 15% capital of Investment in eligible plant and machinery, with a maximum subsidy cap of ₹15 lakh. This means that for an investment of ₹1 crore in machinery, the enterprise can avail a subsidy of ₹15 lakh.
SC/ST MSES: For Micro and Small Enterprises owned by Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs, with the scheme they can get up to ₹25 Lakhs with the Investment of 25%.
SIDBI Loan
SIDBI is short for Small Industries Development Bank of India. It is known to be one of the oldest entities that offer government business loans. It mainly lends a helping hand to MSME businesses that are in dire need of funds. SIDBI offers direct loans. However, it provides indirect loan schemes to NBFCs and SFBs
Loan amount: Between 10 lakhs to 25 crores.
Repayment period: Up to 10 years.
Special feature: No collateral is required for loans up to ₹1 crore.
In conclusion, through government loan programs, companies can be provided with funds and loans that are necessary for developing, going a step further, and even adding jobs. Choosing the best business loan can be difficult and how to apply in a business government loan can be difficult this the place where the experts can help you in conusltupindia A dedicated expert team will help you to get your perfect business loan for startup. Get more information about at consultpindia
(Note: Raising a loan comes with its own risks. So, due caution is advised)
