Do you also want to start your own business, but a lack of money is stopping you? If yes, then there is no need to panic now. The Government of India has launched several special loan schemes for such entrepreneurs, which provide financial assistance at low interest rates, easy terms, and in many cases without any guarantee. Whether you want to start a new small business or expand your existing business, you can get the necessary financial help through these government schemes.
Golden opportunity to start a business
These government schemes not only empower small entrepreneurs financially but also strengthen the country’s economy. The biggest advantage of these schemes is that they are specially designed for those who find it difficult to get loans through traditional methods.
Pradhan Mantri Mudra Yojana (PMMY)
Pradhan Mantri Mudra Yojana is an extremely important financial scheme of the Government of India, which aims to financially strengthen micro and small enterprises operating in the non-agricultural sector. Under this scheme, the government provides loans up to ₹20 lakh for income-generating activities in manufacturing, trading, and service sectors. It also includes agriculture-related activities like poultry, dairy, and beekeeping.
This scheme specifically targets businesses that are operating in the non-corporate and non-agricultural sector. It includes small manufacturing units, service sector units, shopkeepers and retailers (such as fruit and vegetable vendors), truck operators, repair shops, artisans, and food processing units.
Four categories in Mudra Yojana
Under Pradhan Mantri Mudra Yojana, loans are given to applicants in four categories, so that they get the right amount according to their need:
Shishu:- ₹50,000
Kishor:- ₹5 lakh
Tarun:- ₹10 lakh
Tarun Plus:- ₹20 lakh
You can apply for this loan from banks and other financial institutions.
MSME Loan
Micro, Small, and Medium Enterprises (MSMEs), which play a vital role in the socio-economic development of India, often face a lack of timely financing. To solve this problem, loans ranging from ₹10 lakh to ₹5 crore are provided under the MSME Loan Scheme. This loan not only helps in raising funds for various business needs but also simplifies the decision-making process for the loan manager.
National Small Industries Corporation (NSIC)
NSIC is a government body that provides financial, technical, and marketing support to small enterprises. This scheme helps businesses to survive and grow in the market. NSIC’s Marketing Support Scheme assists in brand recognition, market expansion, and promotion through consortia schemes and tender marketing. Along with this, financial assistance is also provided for purchasing raw materials and working capital under the Credit Support Scheme.
Credit Linked Capital Subsidy Scheme (CLCSS)
This scheme is best suited for businesses that want to bring technological improvements and modernization to their industry. Under this, assistance is given for investment in various areas such as trade, supply chain, and manufacturing. According to Bajaj Finance, eligible businesses get a capital subsidy of 15% under this scheme, which reduces the cost of technological upgradation.
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’s schemes can range from ₹ 10 lakh to ₹ 25 crore, and the loan tenure is up to 10 years. The most important thing is that loans up to ₹ 1 crore are available without any guarantee (collateral-free). Apart from this, SIDBI also gives loans to MSMEs through NBFCs and small finance banks.