Start Up Loans For Small Business Government – The entrepreneurial dreams of Indians have given the country 94 unicorns in recent years. This number is expected to cross the century mark by the end of 2022. Startups in the MSME sector are the heart of the Indian economy and have created millions of jobs for people across the country.
MSMEs alone are estimated to contribute 8% of the total GDP and startups play a huge role in this. But unfortunately, not every entrepreneurial dream gets a chance to take off due to lack of funds. Keeping this in mind, the Government of India offers various government loans to help passionate entrepreneurs.
Start Up Loans For Small Business Government
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Budding entrepreneurs with a revolutionary idea should make use of government loan schemes to implement their ideas. For further help of all entrepreneurs, we have curated this epic guide which contains all the information on how to get government loan for startup.
Small Business Loan Program
Although the exact eligibility criteria vary depending on the type of government loan people take out, the common criteria across all loans are:
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Government business loans always provide startups with the financial support they need. If the startup needs some financial assistance, entrepreneurs can apply for any of the following government loans for startup.
Launched in 2015, this government loan scheme provides business loans to corporate and non-agricultural small and micro industries. Under this scheme, startups will get Rs. Loan amount up to 10, 00, 000. The repayment period for this collateral-free loan ranges from one year to five years. Startups can avail this loan by visiting any nearest small finance bank, microfinance institution, commercial bank and non-banking financial company.
How Do You Get A Loan To Start A Business?
Pradhan Mantri Mudra Yojana provides loans depending on the stage of development of the startup. So, applicants can find the following three divisions under this loan:
Startup founders can apply for this loan if they are trader, shopkeeper, seller etc. Visit any of the above mentioned lending institutions or login to PSB or 59 Minutes portal and do the necessary. They guide more. Startups can avail this loan as working capital loan through Mudra Card offered.
As the name suggests, this government-provided loan is approved in 59 minutes flat. Launched by SIDBI, this loan is ideal for small and medium startups with a capital assistance of Rs. 10, 00, 00, 000 with somewhat lower interest rate. In some cases, the interest rate is as low as 8%.
To avail the loan scheme of these Public Sector Banks (PSB), startup entrepreneurs can visit Central Bank of India, Canara Bank, Bank of Baroda, Bank of India, SBI, etc. for a hassle-free loan application process. Once the loan application is processed and approved, applicants can get the amount within 8-10 working days. Startup entrepreneurs can also visit PSB Loan in 59 Minutes portal to get more details about this loan scheme and apply.
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Also known as CGTMSE, this government business loan provides collateral-free loans to startups. Launched by SIDBI and Ministry of MSME, this loan scheme is Rs. Provides loan amount up to 2, 00, 00, 000 for new and existing startups. Special preference is given to women entrepreneurs under this loan scheme. Under CGTMSE, startups can get Rs. You can get an unsecured loan up to 10, 00, 000. But for an amount above this value, startups have to provide collateral in the form of any building or land ancillary to the primary business.
Those who wish to avail CGTMSE loan can approach a scheduled commercial bank or opt for a regional rural bank classified by NABARD for loan approval. New and existing startups engaged in manufacturing activities, retail business and service activities can apply for this loan.
NSIC has signed MOU with various banks to provide fast and hassle free loans to various startups. Launched by the Ministry of MSME, this one-of-a-kind loan facility is provided by NSIC under the Central Government. The best part of this government loan is that NSIC also helps in completing complete documentation and legal formalities to avail the loan quickly.
Small or medium startups that need a short-term loan for working capital or running other operations should consider applying for this loan. It is a reasonably low interest loan and can be availed by visiting any reputed banking institution like HDFC Bank, ICICI Bank, Axis Bank, YES Bank etc.
Pros And Cons Of Government Business Loans
Also known as CCLCSS, it is a loan provided by Ministry of MSME and Government of India to startups for technology upgradation. Startup entrepreneurs having a manufacturing enterprise, textile startup, fabrication unit or any business that uses machines and equipment can avail this loan up to Rs. 15 lakhs for upgrading to state-of-the-art technology. This loan helps startups stay up-to-date with technology to survive competition at local and global levels.
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With information on top government business loans for startups now available, some entrepreneurs may be confused about what to go with. The answer is very simple. Each loan discussed above has a different benefit, interest rate, credit limit, etc. Startup founders need to come up with something that will help the business stay afloat and scale in the best possible way.
To apply for any of the government business loans discussed above, startup founders can go to the respective website of the financial institution providing the loan, fill the application and wait for someone from the institution to contact them. Business loans offered by the government can help you accelerate the growth of your business, so apply for them.
Choose The Best Small Business Administration (sba) Loan
Under the MSME Government Business Loan Scheme, as an MSME, a startup/business can get Rs. Loan can be sanctioned up to 1 crore in just 59 minutes.
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The Mentor Works team of Canadian Government Grant & Loan Application Writers has an average success rate of 86% across all government funding programs and saves our clients an average of 95% time. Speak with a member of our team to find out what programs your business may qualify for by calling us at 1-888-599-3111 or visiting our funding assistance page.
Infographic] Process Of Applying For Government Funding
Most business owners get financing through banking institutions. However, they often overlook government grant funding for business activities from the provincial (ie Ontario business grants) and federal government levels. Canadians have an abundance of small business grants and other funding available for small business. It is important to know about the different types of funding for a small business. Fortunately, free resources can help sort through the funding landscape, including this Canadian Small Business Funding Guide.
Canadian government funding programs support small businesses, large corporations, non-profits and post-secondary research institutions. However, the key to accessing these programs is knowing which one is the best fit for your organization and upcoming projects.
Register for an upcoming Canadian government funding event to learn more about how funding works, how to navigate the government funding process and support services to help develop a successful application.
Mentor Works frequently hosts webinars and live events to help business owners and executives learn more about their funding potential. Register for a session to continue exploring business and export expansion funding.
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If you’re a startup, the best way to align yourself for future government funding opportunities is to complete the Startup Funding Checklist. This startup funding resource provides priorities to best position all startups for funding.
Are you unsure about your eligibility for any of the Canadian government funding programs listed above? The majority of government grants for small businesses are reserved for established SMEs (ie. incorporated 3+ years, 5+ payroll employees, $500,000+ annual revenue). If you are established, please send us a message or register for an upcoming small business funding event. From here, we can further assess your eligibility for specific Canadian government funding programs and help you choose the funding that best suits your business growth plans.
