{"id":6386,"date":"2020-09-17T05:54:06","date_gmt":"2020-09-17T05:54:06","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=6386"},"modified":"2023-10-26T05:52:23","modified_gmt":"2023-10-26T05:52:23","slug":"top-5-government-loan-schemes-for-small-businesses-in-india","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/top-5-government-loan-schemes-for-small-businesses-in-india\/","title":{"rendered":"Top 5 Government Loan Schemes For Small Businesses In India"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><iframe src=\"https:\/\/w.soundcloud.com\/player\/?url=https%3A\/\/api.soundcloud.com\/tracks\/894636925%3Fsecret_token%3Ds-HjkUo2IRQnc&amp;color=%23ff5500&amp;inverse=false&amp;auto_play=true&amp;show_user=true\" width=\"100%\" height=\"20\" frameborder=\"no\" scrolling=\"no\"><\/iframe>According to a Q1 2020 World Economy report, the International Monetary Fund has cited India as the fastest-growing economies in the world. A major part of this growth can be attributed to micro and <\/span><b>small business<\/b><span style=\"font-weight: 400;\"> houses and medium enterprises. In fact, SMEs are currently contributing about 40% of the nation\u2019s GDP. To fuel further development of such enterprises, the Government of India has introduced several schemes through which business owners can avail necessary financing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are looking to secure your business\u2019s future via smooth operation and sustainable growth, the following government <\/span><b>loans<\/b><span style=\"font-weight: 400;\"> can be the perfect options to maintain a steady flow of capital.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take a look!<\/span><\/p>\n<ul>\n<li>\n<h2><b>Pradhan Mantri Mudra Yojana (PMMY)<\/b><\/h2>\n<\/li>\n<\/ul>\n<h4><b><i>Eligibility Criteria:<\/i><\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Non Corporate <\/span><b>Small Business<\/b><span style=\"font-weight: 400;\"> Segment (NCSB) like small-scale manufacturing units, service sector units, small industries etc.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Small business owners holding proprietorship in rural and urban areas can apply for this loan.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">PMMY offers government loan schemes to fund different business activities and entrepreneurial segments under the Micro Units Development and Refinance Agency (MUDRA).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under this scheme, <\/span><b>small business<\/b><span style=\"font-weight: 400;\"> houses can avail a loan up to Rs.10 lakh without any mortgage, hypothecation or pledge. Some examples of loan schemes under <a href=\"https:\/\/www.kredx.com\/mudra-loan\/\">MUDRA Loan<\/a> are:<\/span><\/p>\n<p><b>Tarun loans:<\/b><span style=\"font-weight: 400;\"> Rs. 5 Lakh to Rs. 10 Lakh<\/span><\/p>\n<p><b>Kishor loans:<\/b><span style=\"font-weight: 400;\"> Rs. 50,000 to Rs. 5 Lakh<\/span><\/p>\n<p><b>Shishu loans: <\/b><span style=\"font-weight: 400;\">Up to Rs. 50,000<\/span><\/p>\n<ul>\n<li>\n<h2><b>Credit Guarantee Scheme (CGS)<\/b><\/h2>\n<\/li>\n<\/ul>\n<h4><b><i>Eligibility Criteria:<\/i><\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Existing MSMEs dealing in manufacturing.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Start-ups dealing in manufacturing.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Self-Help Groups (SHGs).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The government launched the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide <a href=\"https:\/\/www.kredx.com\/msme-loan\/\">affordable loans to the MSME sector<\/a>. Under this scheme, MSMEs can avail term loans or <a href=\"https:\/\/www.kredx.com\/what-is-working-capital\/\">working capital loans<\/a> of up to Rs. 2 Crore to fund their business operations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Besides that, the scheme also provides guarantee cover of up to 75% of the credit and up to a maximum of Rs. 1.5 Crore.<\/span><\/p>\n<ul>\n<li>\n<h2><b>MSME Business Loans For Start-ups In 59 Minutes<\/b><\/h2>\n<\/li>\n<\/ul>\n<h4><b><i>Eligibility Criteria:<\/i><\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The borrower must be registered under GST and IT compliant.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The borrower must have the last 6 months\u2019 account statements.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Also headed by CGTMSE, this scheme strives to provide eligibility as well as loan approval to borrowers within 59 minutes, hence the name.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under this scheme, small business owners can avail a loan starting from a minimum of Rs.1 Lakh to Rs. 5 Crore with interest rates starting from 8.50%.<\/span><\/p>\n<ul>\n<li>\n<h2><b>SMILE (SIDBI Make In India Soft Loan Fund For MSMEs)<\/b><\/h2>\n<\/li>\n<\/ul>\n<h4><b><i>Eligibility Criteria:<\/i><\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">New MSMEs belonging to the services or manufacturing sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Existing <\/span><b>small business<\/b><span style=\"font-weight: 400;\"> enterprises that are willing to expand.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Small Industries Development Bank of India (SIDBI) launched this government <\/span><b>loan<\/b><span style=\"font-weight: 400;\"> scheme in 2015. It aims to help new small business houses to meet their debt-equity ratio. The minimum loan amount offered under SMILE is Rs. 25 Lakh. It also offers flexible loan repayment tenure of up to 10 years.<\/span><\/p>\n<ul>\n<li>\n<h2><b>Stand-Up India<\/b><\/h2>\n<\/li>\n<\/ul>\n<h4><b><i>Eligibility Criteria:<\/i><\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Businesses dealing in training, manufacturing and services<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Non-enterprise SC\/ST individuals and women holding at least 51% of shareholder stake can also apply for this <\/span><a href=\"https:\/\/www.kredx.com\/business-loan\/\"><b>loan<\/b><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is another brilliant government loan scheme facilitated by SIDBI. Stand-Up India is aimed to fund entrepreneurs belonging to the SC\/ST categories as well as women entrepreneurs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The minimum amount offered by this scheme is Rs. 10 Lakh and a maximum of Rs. 1 Crore per branch to at least one woman and one SC\/ST borrower. Stand-Up India covers 75% of the project\u2019s total cost, inclusive of machinery and equipment cost and working capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, you can leverage such government loan schemes to expand your business sustainably. Choose the one that suits your requirement and then take it from there.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to a Q1 2020 World Economy report, the International Monetary Fund has cited India as the fastest-growing economies in the world. A major part of this growth can be attributed to micro and small business houses and medium enterprises. In fact, SMEs are currently contributing about 40% of the nation\u2019s GDP. To fuel further [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6399,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,155],"tags":[491,492,58,493,77,189],"class_list":["post-6386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-msme","tag-government-loan-schemes","tag-government-loans","tag-loans","tag-msme-business-loans","tag-msmes","tag-small-business"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=6386"}],"version-history":[{"count":1,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6386\/revisions"}],"predecessor-version":[{"id":13728,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6386\/revisions\/13728"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/6399"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=6386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=6386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=6386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}