Government loan scheme for business startups in india, msme

Business Startup Loan:- Raising funds is one of the biggest challenges for an aspiring entrepreneur, and without external funding, startups can’t survive for a long time. Considering this, many lenders have rolled out startup loans for aspiring entrepreneurs. New businesses can also get benefits from government loan schemes for business startups in India. Business start-up loans are exclusively designed to fund startups with little or no business history. There are two types of business startup loans — line of credit and equipment financing. Startups companies can use the loan amount for a variety of business purposes including working capital needs, debt consolidation, purchase of machinery, supply chain financing, asset acquisition, etc. Features of startup business loan:- Features and benefits of startup business loan and government loan scheme for business startups in India are as under: 1. Applicants don’t need to provide collateral or security to get a startup business loan. 2. As loan schemes are specifically designed for startups, the documentation required is minimal. 3. Business startup loans have relatively flexible and longer repayment tenure. 4. Quick approval and instant disbursal directly in the applicant’s bank account. 5. Multiple loan schemes offered by several banks. Government loan scheme for business startups in India:- Raising funds is a difficult proposition when a business is just a concept or is in the early stage. The government of India has launched startup India Scheme to empower the young entrepreneurs. Under the government loan scheme for business startups in India, entrepreneurs can enjoy a host of benefits. Different types of business loans for entrepreneurs, SME (Small and Medium Enterprise) and MSME (Micro, Small and Medium Enterprise) are available under startup India scheme: Some of the principal schemes of Startup Business Loans by the Government of India are as under: Pradhan Mantri Mudra Yojana (PMMY): Headed by the Micro Units Development and Refinance Agency (MUDRA), this scheme was introduced to help the micro-enterprise sector in the country by extending loans for all kinds of service, trading and manufacturing activities. A business loan ranging from Rs. 50,000 to Rs. 10 lakh can be obtained under three categories — Shishu, Kishor and Tarun. Mudra loan is available for vendors, shopkeepers, traders, machine operators, repair shops and small services businesses. Bank Credit Facilitation Scheme: Headed by the National Small Industries Corporation (NSIC), this scheme aims to meet the financial needs of SME and MSME units. NSIC has partnered with several banks like Yes Bank, IndusInd Bank Ltd., Federal Bank, Kotak Mahindra Bank, HDFC Bank and many more to offer loans to MSMEs. MSME units can directly approach any of NSIC branch offices to submit their request. Credit Guarantee Scheme (CGS): New and existing MSME units engaged in service and manufacturing works, other than educational institution, retailers, Self Help Group and agriculture, can get up to Rs. 200 lakh loan under this scheme. Stand-Up India Scheme: Stand-Up India scheme aims to empower SC/ST and women entrepreneurs. Under this scheme, Scheduled Caste (SC), Scheduled Tribe (ST) and Woman borrowers can get bank loans between Rs. 1 lakh and 1 crore for setting up a new enterprise involved in service, trading or manufacturing activities. The loan is repayable within 7 years with a maximum moratorium period of 18 months. Sustainable Finance Scheme: Headed by SIDBI (Small Industrial Development Bank of India), this scheme is developed to offer financial help to all sustainable development projects involved in green energy, renewable energy, green buildings and eco-friendly labelling. The ESCO must be an MSME or otherwise the unit to which it offers its services has to be MSME to be eligible to get this loan. A startup business loan is available for individuals who want to start a new business or for SME and MSME looking to expand current business. Consider the following points to apply for a startup loan: 1. Keep your business plan ready 2. Outline the vision and mission of your future venture 3. Calculate the fund required as precisely as possible 4. Mention the application of funds specifically in your business plan Eligibility criteria for business startup loan:- While the eligibility criteria may vary from lender to lender, here are the common requirements you need to fulfil to get business startup loan: 1.The applicant must be an Indian citizen 2.The applicant should be at least 21 years old at the time of application while the maximum age should not be more than 65 years. 3.The applicant should be an entrepreneur or have a business plan 4.Documents required for business startup loan Here is a checklist of documents required for business startup loan: — Photographs: 2 copies (passport-size) — Proof of age: Passport, PAN Card — Proof of Identity: One of — PAN Card, Passport, Aadhaar Card, Voter’s ID, Driving License — Address Proof: One of — Passport, Driving License, Aadhaar Card, Postpaid Phone Bill, Voter’s ID — Proof of Income: Bank Statement, Salary Slips of last six month — Bank proof: Cancelled/ scanned cheque, copy of front page of your passbook — Signature proof: PAN Card, Passport, Bank verified signature

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