The nationwide lockdown has made life tough for everybody, especially for small business owners. The pain is deeper for non-salaried individuals who don’t have a regular income. Managing a business is not easy; you need to have sufficient finances to grow your business. In emergency situations the lack of financial backup can cause more harm to small businesses. But with the help of a business loan you can get the required funds for your business. There are numerous loan schemes that the government offers to small businesses. Let’s have a look at the emergency business loan schemes.
The government has set up the MUDRA scheme to provide finance to non-corporate, non-farm small/micro-enterprises. You can avail loans for small business Mudra loans from private and public sector banks, commercial banks, regional rural banks (RRBs), small finance banks and corporate banks. MUDRA loans are categorised into three different schemes named as Shishu, Kishor and Tarun. Interested applicants can approach any of the above lending institutions or apply online through the official website of MUDRA. Its features are as follows:
Business Loan Amount: The loan scheme offers the applicants maximum loans of up to Rs. 10 Lakhs and the minimum loan amount offered is Rs. 50,000.
Approval and Disbursement of Loan: This loan is approved and disbursed as per the discretion of the respective banks.
Micro Financing for businesses: For the Micro Businesses, this scheme provides maximum finances and minimum risks.
Business Under Surveillance: Under the scheme, the small businesses shall constantly be scrutinised so that they can be motivated and perform better.
MSME Loan Scheme 2020
An MSME loan scheme 2020 is usually provided to help entrepreneurs start small businesses or to help small business owners improve their existing business. Getting a small business loan for MSME is a simple and low-cost way to borrow for commercial ventures and plug in the gaps of finance by covering a variety of expenses without facing any delays. You can get an MSME Loan without pledging any collateral, which means you are not required to pledge any of your valuable assets as security. MSME business loans are an ideal source of hassle-free MSME finance for your enterprise.
CGTMSE (Credit Guarantee Funds Trust for Micro and Small Enterprises) is a government initiative that focuses on providing credit guarantee to financial institutions that provide loans to small businesses in India. The CGTMSE scheme helps small businesses to thrive in a competitive environment by providing working capital loans of up to ₹ 10 Lakhs without the need for collateral or third party guarantees. This makes it easier for small businesses to avail a loan with ease.
NSICS (National Small Industries Corporation) Subsidy for small businesses offers Raw Material Assistance and Marketing Assistance to SMEs. The NSIC is focused on funding small and medium enterprises who are willing to improve their business manufacturing quality and quantity. The NSICS helps small businesses enhance their competitiveness and value of their products and services in the market.
The CLCSS (Credit Link Capital Subsidy Scheme) aims to reduce the cost of production of goods and services for SMEs by allowing them to have a competitive price in local as well as international markets. The CLCSS scheme offers an up-front capital subsidy of 15% for businesses like Sole proprietorships, partnership firms, co-operative, private and public limited companies.
Business loans available ON Finserv MARKETS have no hidden charges. You can apply for business loans and utilize the loan amount to manage daily expenses of the business, manage inventory, hiring employees, etc. In addition to that, the loan funds can also be used for mergers and acquisitions, relocating a business to a newer or bigger location or investing in a new product line would require a large amount. By getting a loan at Finserv MARKETS, you can get the finance you require for smooth business operations.
As a business owner you should always understand the various components of GST to run your business smoothly.
Business Loan Eligibility Criteria
To avail a loan with ease you need to fulfil the eligibility criteria only then you are eligible for a loan for your business.
You must be a citizen of India to be eligible for a loan.
You must be a self-employed individual.
Self-employed individuals between 26 - 66 years are eligible and can apply for a loan.
Your business must be at least 3 years.
Documents Required For a Business Loan
The business loan application form with one passport size photograph.
Identity proof of the applicant such as Passport, PAN card, Voter’s ID card, Driving license etc.
Proof of Residence such as Ration card/Telephone Bill/ Lease agreement/ Electricity Bill/ Passport/Trade license /Sales Tax certificate.
Documents for Proof of Age: Passport, Photo PAN card, Voter’s identity card.
Financial Documents such as IT return documents for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for the last two years audited by a C.A.
Documents Required for Self-employed Individuals
Proof of Identity of Sole Proprietorship.
PAN card/ IT return documents of the borrower or Municipal tax, Water, Electricity bill in the name of the applicant.
Sole Proprietor proof of identity such as passport, driving license, voter’s identity card, PAN Card.
Proof of residence for the Sole Proprietor such as Driving license, Passport, Voter’s ID.
Documents Required for Self-employed Individuals-Non Professionals
Proof of identity of the sole proprietorship.
3 years of ITR documents.
3 years of sales tax return documents.
A copy of periodic stock and creditors-statement for the last three months.
Bank statement of the last 6 months of the applicant.
At Finserv MARKETS, you get loans for small businesses at attractive interest rates for undertaking various business operations, such as an expansion of your business, acquisition of other companies, buying high-value and getting new machinery or equipment, etc. Finserv MARKETS provide customers with 500+ financial and lifestyle products to choose from such as Personals Loans, Business Loans, Loan against Property, Professional Loan, Car Loan, etc.
Bajaj Finserv Business Loans are collateral-free, which means you do not have to put your personal or business assets on the line to get the finance for your business. You can simply apply for a loan online and get pre-approved offers for an instant loan without security from Finserv MARKETS. They also provide you with a Business Loan calculator that gives you the exact monthly outflow of your EMI amount, this makes your loan repayment much easier. You can also check your CIBIL score for free and also obtain a Financial Health Check Report (FHCR).
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”