Government Business Loan Schemes in India

The world of business is a place where every day, you get to face new challenges and learn from your highs and lows. For starting a business or even to expand it, the most important thing is fund/finance. A Business Loan can help in this case. As you know, financial liquidity is vital to maintain your business operations. That’s why many businesses opt for additional financing. There are government loan schemes available for different sectors that can help secure the financing required for your business.

MSME Loan Scheme

The MSME business loan scheme was launched by the Indian government, focussing on the working capital loan.  MSME scheme can be availed by any kind of business; be it new or existing for financial assistance of up to Rs. 1 crore. the scheme for business financial assistance up to ₹ 1 crore. The loan processing takes 8-12 days to complete, while the approval or disapproval is granted within the first 59 minutes of application. The best part of MSME Loan Scheme is that, you get this loan at 8% ROI, which makes the loan repayment easier.  Women entrepreneurs secure a reservation of 3% as well, offering a quick loan sanction Which can help them structure their business strategies accordingly.

Credit Guarantee Fund Government Loan Scheme

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) has been facilitating collateral-free loans for MSMEs for quite a long time now. Any scheduled commercial bank and the regional rural bank can become a part of the CGTMSE scheme by empanelling itself as a lending authority. The agency sanctions loans to MSME on the basis of their credit standing via the lending agencies in question. The CGTMSE scheme provides working capital loans up to Rs. 10 Lakhs without any collateral as security. However, for all credit facilities for the amount that is above Rs. 10 Lakhs and up to Rs. 1 crore, only primary security or mortgage of land and building will be covered under the CGTMSE scheme.

MUDRA Loan

The Micro Units Development and Refinance Agency (MUDRA) has a funding scheme where small businesses and start-ups can get financial support in the form of low-cost credit. MUDRA Loans can be applied through public and private sector banks, co-operative societies, small banks, scheduled commercial banks, and rural banks. MUDRA loan is typically for micro or small businesses that operate in the manufacturing, trading and services sector. that operate in the manufacturing, trading and services sector. A business firm can avail funds via the MUDRA loan scheme under three categories.

  • Sishu Loans up to Rs.50,000
  • Kishor Loans up to Rs.5,00,000
  • Tarun Loans up to Rs.10,00,000

The MUDRA Card is an innovative product that provides a working capital facility as a cash credit arrangement. This card is given to you like a debit card against your MUDRA loan account, where you can withdraw funds from your MUDRA loan account multiple times.

Credit Link Capital Subsidy Scheme

This loan scheme funds technological upgrades in your business. The funds can be used to undertake a revamp related to numerous processes for your business, like manufacturing, marketing, and supply chain. With the Credit Link Capital Subsidy Scheme, the production cost is reduced for creating and providing goods and services by SMEs. The CLCSS offers an up-front capital subsidy of 15% for businesses that are eligible under the scheme.  Loan of up to Rs. 15 Lakhs can be availed set at Rs. 15 Lakhs. A sole proprietorship business, partnership firm, and co-operative or private and public limited company are all eligible under the CLCSS.

National Small Industries Corporation Subsidy

The NSIC offers MSMEs, two different kinds of funding benefits:

  • Raw material assistance
  • Marketing assistance.

Any business that qualifies as a micro and small enterprise with an EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) is eligible to apply for the NSIC scheme under its Single Point Registration Scheme (SPRS).

If you qualify for this business loan scheme, you can opt for the raw material assistance scheme, where you can fund the cost of indigenous and imported raw material required for your business. Under the marketing support, you can use the funds to enhance your competitiveness and the market value of your offerings. The NSIC subsidy scheme also overlooks the functioning of an MSME and supports it in its endeavour to enrich production and quality.

As MSMEs are consistently growing in India, various lending institutions now offer exclusive loan products for MSMEs. At Finserv MARKETS you can apply for an SME loan for your business at attractive interest rates. Bajaj Finserv Business Loans are unsecured in nature. Thus, you need not pledge any collateral or security, in order to avail the loan, get a business loan of up to Rs. 30 Lakhs. The personal loan funds can be used for undertaking various business operations, such as the  to expand the business, acquire other companies, etc  new machinery, technology, etc.

Being an unsecured type of loan you don't have to pledge any collateral as security for the loan. You can simply apply for a SME loan with the  Finserv MARKETS App  and get pre-approved offers for an instant loan with ease. Before applying you can also check your CIBIL score for free and also obtain a Financial Health Check Report (FHCR). These business loans will help your business grow. small business rise with enhanced competitiveness and profitability.

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