Business Loan Schemes to Start a Business in India by Government & NBFCs

business loan schemes in india

One thing that keeps the business running are funds. Money is an essential resource for the business to sustain. It helps to build infrastructure, buy machinery, purchase raw materials, upgrade the infrastructure at regular intervals. Many budding entrepreneurs have a quite a lot of aspirations in their heart to create a niche for themselves in the business realm, but sometimes the dreams come crashing down as they fall short of funds and do not get sufficient financing.

Even after the business come in operation, shortage of funds can lead to losses, recovering from which can be very difficult. Many businesses struggle to gather funds to function. While some businesses initially function smoothly but later on find it difficult to function smoothly with shortage of funds. To help such startups and enterprises, there are various business loan schemes offered by financial institutions i.e Banks and NBFCs, so that they can broaden their horizons.

Here are some business loan schemes to start a business in India available from the government & NBFCs

MSME Loans

MSME stands for Micro, Small, and Medium Enterprises. In recent times, the economy of India has taken significant strides towards progress. This has given rise to large number of Micro, Small, and Medium Enterprises. These enterprises constitute a significant portion of Indian business industry and contribute greatly to economy despite their size. To support them, most of the banks and NBFCs today provide MSMEs loans. The businesses can avail these loans if they fall under MSME category.

A MSME loan can be used for various activities like buying machinery, raw-materials, inventory or upgrading the infrastructure. There are a set of eligibility criteria that you need to fulfill to be eligible for this loan. Like, the age of the applicant must be 25-65 years, he/she must have a business experience of 3 years, and he/she must have filed the ITR for the past 1 year.

The Pradhan Mantri Mudra Yojana or PMMY

The Pradhan Mantri Mudra Yojana or PMMY was the initiative introduced by the Indian Government. MUDRA loans were introduced in this scheme. MUDRA stands for Micro Units Development and Refinance Agency. This scheme was introduced to provide funds to micro and small ventures in non- farming and non-corporate sector as high as Rs. 10 Lakhs. There are three types of loans, Shishu Loan, Tarun Loan, Kishore loan.

This provides a great boost to the industries. The major reason for it is that it is essentially a working capital loan, that helps these enterprises manage the finances required for daily operations. This is applicable to all the new and existing manufacturing and trading enterprises. They can avail this working capital loan online as well.

Credit Guarantee Scheme (CGS)

Credit Guarantee Scheme (CGS) is the loan scheme launched by the Government of India. The main aim of this scheme is to enhance the credit delivery system in the MSME sector. This loan is also a working capital loan, which can be used for day-to-day operations.

Today, various banks and NBFC offer loans under the Credit Guarantee Scheme. This majorly caters to MSMEs in manufacturing and service activities. Loans of up to Rs. 2 crore per borrowing unit are available under this scheme.

Business Loans at Finserv MARKETS

New businesses can avail business loans available on Finserv MARKETS and their loan app. Finserv MARKETS is a digital marketplace, where entrepreneurs can find variety of financial products that suits their requirement. Business Loans of up to Rs. 30 Lakhs can be availed on Finserv MARKETS. Also, there are multiple benefits of availing this loan.

Apart from keeping the loan application process completely online, the financial institution gives the benefit of ‘no-collateral’ for security. The documents required are quite minimal. In addition, there are no hidden charges and complete transparency is ensured.

The loan is approved instantly, i.e. in just 3 minutes. Also, the repayment tenure is flexible ranging from 12-60 months. Once your loan is approved, you can get money in just 24 hours. Besides, whenever you need to keep the track of your finances, you can log on to the Customer Portal to track your account anytime, anywhere.

These are some of the business loan schemes to start a Business in India. Have you availed one – what is your review?

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