Do you also want to start your own business but the lack of funds is stopping you? If yes, there is no need to panic. The Government of India has introduced several special loan schemes for entrepreneurs that provide financial assistance without low interest rates, simple conditions and many cases without any guarantee. Whether you want to start a new small business or want to expand your existing business, you can get the necessary financial support through these government schemes.
Pradhan
The Pradhan Mantri Mudra Yojana is a major financial scheme of the Government of India, which aims to economically empower micro and small enterprises working in non-agricultural sectors. Under this scheme, the government provides loans up to Rs 20 lakh for income-creation activities engaged in manufacturing, trade and service sectors. This scheme also includes agriculture related activities such as poultry, dairy, beekeeping etc. The scheme especially targets businesses that are generating income in non-corporate and non-agricultural sectors.
Financial assistance under this scheme is given to micro and small institutions with ownership/partnerships including small manufacturing units, service field units, shopkeepers and retailers (such as fruit-vegetable sellers), truck operators, food service units, repair shops, machine operators and food processing and other self-employment-based businesses.
Loan is available in four categories
Under the Pradhan Mantri Mudra Yojana, applicants are given loans under four categories- ‘Shishu’, ‘Kishore’, ‘Tarun’ and ‘Tarun Plus’. A loan up to Rs 50,000/- is offered in the infant category. Under the juvenile category, loans of more than Rs 50,000/- and up to Rs 5 lakh are given. Similarly, a loan of more than Rs 5 lakh and up to Rs 10 lakh is given in Tarun category. In Tarun Plus, a loan of up to Rs 20 lakh is offered for entrepreneurs who successfully pay the previous loan. Banks and other financial institutions can be applied for this loan.
MSME loan
A loan ranging from ₹ 10 lakh to ₹ 5 crore is given under this scheme. Micro, Small and Medium Enterprises (MSME), who play an important role in India’s socio-economic development, often face major challenges in terms of timely financing. This loan helps in raising money quickly for various business requirements, but also makes the life of MSME easier, simplifying the process of deciding for the loan manager. You can get MSME loan with the necessary qualifications with a simple, single application, ₹ 10 lakh to ₹ 5 crore.
National Small Industries Corporation ie NSIC Scheme
NSIC is a government institution that provides financial, technical and marketing assistance to small enterprises. This scheme helps in advancing businesses and staying in the market. Marketing assistance is provided in the National Small Industries Corporation’s Marketing Support Scheme through concertia scheme, tender marketing etc. This helps in the identity, market expansion and promotion of the brand. Secondly, the credit support scheme under which financial assistance is provided for purchasing raw materials, working capital raising and marketing activities.
Credit Linked Capital Subsidy Scheme (CLCSS)
This scheme is suitable for businesses that want to bring technical improvements and modernization to their industry. Under this, assistance is provided for investment in various fields such as trade, supply chains and manufacturing. According to Bajaj Finance, qualified businesses get 15% capital subsidy under this scheme, which reduces the cost of technical upgradation. Eligible units for the scheme include Sol Proprietorship, Partnership Firm, Private Limited and Public Limited Companies, and Cooperative Institutions.
Small Industries Development Bank of India (SIDBI) loan scheme
SIDBI is one of the oldest and trusted institutions to strengthen the MSME sector in India. This bank provides financial assistance in both direct and indirect forms.
The loan limit under SIDBI scheme ranges from ₹ 10 lakh to ₹ 25 crore. The loan duration can be up to 10 years. The most important thing is that a loan of up to ₹ 1 crore is available without any bail. Also, SIDBI also gives loan to MSME through NBFC and small finance banks.
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