Are you looking for a small or a startup business loan? If so, you’ll be happy to read this!
Getting capital loans to start or grow your business may look daunting when you have no proper information. Worry not! These 5 startup business loans by the Govt of India that you can avail to finance your small business.
Small Business Loans in < 1 Hour
Many small businesses are now opting for the ‘MSME Startup Business Loans in 59 Minutes’, a scheme first announced in 2018 by Vyapar with very low business loan interest. The loan is given to small businesses to encourage them to grow their enterprise. This loan is given to businessmen who are yet to start his business. You can avail up to 1 crore. Your loan will be approved within 59 minutes and you will receive the money within 11 days. Interest rate is different for different business and also depends on your credit score.
To apply for small business loans, you just need:
1. GST verification
2. Income Tax verification
3. Bank Account Statements for the last 6 months
4. Business Ownership related documentation
5. KYC details
Have all of it? Apply here>>
MUDRA Low-credit Loans
Under this GOVT scheme, capital loans are provided to finance micro-business operating in the manufacturing, trading and service sector. If you’re a very small business or a startup having nothing to start off with, this is for you. Low-cost capital new business Loans are approved and given by public sector banks, private sector banks, co-operative societies, small banks, scheduled commercial banks and rural banks.
Based on the credits given, MUDRA scheme is divided into following new business loans:
1 Sishu Loans up to Rs. 50,000/-
2 Kishor Loans up to Rs. 5,00,000/-
3 Tarun Loans up to Rs. 10,00,000/-
CGMSE collateral-free Loans
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched as a financial support scheme for micro and small enterprises.
You can get collateral-free credit for both of your new and existing businesses. You can get up to,
1 Rs. 10 Lakhs without any collateral
2 Above Rs. 10 Lakhs – 1 Crore requires collateral – under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
National Small Industries Corporation Subsidy for Raw material & marketing help
This scheme offers small businesses two kinds of financial benefits
1 Raw Material Assistance: Covers both native and imported raw materials cost
2 Marketing Assistance: Funds are given to SMEs for marketing their products/services.
Credit Link Capital Subsidy Scheme for Technology Upgradation
This startup business loan for small businesses is to help them upgrade to digital tools. The technological up-gradation can be related to numerous processes within the business, such as accounting, billing, inventory management.
For Example: The cost of operating a business comes down when one using accounting software to manage business accounts. The CLCSS offers a subsidy of 15% for eligible business. However, a maximum of 15 lakhs is offered in this scheme.
Better Solution: Easy Digital Business Loans from Vyapar
Although there are a lot of schemes for a small business loan, there is still much that needs to be done to avail these loans. If you don’t meet the eligibility, it might take up to 12 months to get your loan approved by these GOVT loans.
On the other hand, Accounting Software like Vyapar helps you get guaranteed low business loan interest within 72 hours. Simply apply for a business loan, get a same- day approval, accept the quote and upload your documents digitally for verification. The entire process hardly takes 10-minutes of your time and the verification is completed within 3 working days by Lendingkart.