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Different business loans by the government:
MSME (micro, small and medium enterprise) is one of the biggest job creators of our economy. It plays an integral role in boosting the economy. Simultaneously different governments tried to strengthen the MSME sectors from time to time. Various government-backed loan schemes and credit guarantee schemes work in tandem with the government’s plan of make in India project. It also helps to make new start-ups and different business opportunities.
1. MSME loan in 59 minutes:
2. Credit Guarantee fund scheme for micro and small enterprises (CGFMSE):
3. Pradhan Mantri MUDRA yojana (PMMY)
4. National small industries corporation:
The government tries to help small businesses under national small industries corporation subsidy with the preliminary plan to provide financial assistance for marketing and raw material.
Tenders: Under the marketing programme, the small industries should get access to tenders without any extra cost.
Security deposit: Any security deposit is exempted for small scale industries to avail of any financial help.
Land and building: The loan is provided for any land and building assistance amount not exceeding 25 lakh.
5. SIDBI Make in India soft loan fund for MSMEs:
It was launched in 2015, SMILE (SIDBI Make in India soft loan fund for MSMEs) is governed by SIDBI to provide soft loans for working capital to MSMEs. It is added on one loan to existing business customers. The rate offered is 8.25% onwards for safe paying of existing accounts maintained.
Any business with combined outstanding credit not exceeding 25 crores can avail of the scheme, and a loan is provided for 20% of the total outstanding amount.
6. Stand up India:
It is a flagship scheme to provide loans to SC/ST category and women entrepreneurs. It includes loans from 10 lakh to 1 crore. Any enterprise engaged in manufacturing or service is eligible for this loan. The interest is decided by banks only, taking the current bank rate into account. The loan is expected to cover 3/4th of the project cost.
Conclusion:
Be it a small industry or a big conglomerate, any business without government support cannot go unaffected in the long run. Most of the time, small businesses are affected more than anything. But in due course of time, the Indian government realised the support it needed to provide to the small industries would determine the future of our business scenario. Depending upon the service sector will not be a staircase to success.
FAQ's
Ans: What are the documents required for an MSME loan?
Ans: Who can get MSME loans?
Ans: Private companies or sole proprietors can get loans provided they are engaged in business for more than three years.
Ans: Which bank is best for a start-up for India?
Ans: There are a number of banks which provide start-up loans and have different departments for this. Like Axis bank Start-up, HDFC bank start-up, ICICI i-startup.
Ans: Is it good to start a business with a loan?
Ans: Yes, it is a good decision to start a business with a loan compared with other methods like shared capital and all.