Top 5 Government Loan Schemes For Small Businesses In India:- There are approximately 40 million micro, small, and medium-sized businesses (MSMEs) in India, both registered and unregistered. MSMEs fall into both the organized and unorganized sectors categories. These micro, small, and medium-sized enterprises (MSMEs) make up about 40% of India’s GDP and continue to be an important employment source.
The nation’s most pressing problems, such as poverty, unemployment, income inequality, regional imbalances and so on, are addressed by the MSMEs. In order to support MSMEs’ businesses and the economy, the government has established a number of loan programs. Through any of the programs that meet their needs, business owners of such micro, small, and medium-sized enterprises (MSMEs) can obtain financing in the form of a loan.
Top 5 Government Loan Schemes For Small Businesses In India
A business with high production rates, sales, the best conversion and profit ratio, and credibility in the face of market competition are successful. A business needs to be in good financial shape in order to obtain all of these things. It isn’t workable for all entrepreneurs to satisfy every one of the actual perspectives. In this situation, they need money or a loan to get a high production rate and a higher sales ratio.
To achieve all of their company’s goals, business owners can choose government loan programs in addition to private loan providers. This strategy is implemented because the government has established a number of loan programs and subsidies to assist business owners in successfully expanding their operations in the face of fierce market competition. So, let’s quickly look at the best Indian government loan programs for small businesses that can help them get money for their business.
Top 5 Government Loan Schemes For Small Businesses In India Details
| Article Name | Top 5 Government Loan Schemes |
| Official Website | Click Here |
| Category | Loan |
| Maximum loan repayment tenure | 10 years with 36 months moratorium period |
| The minimum loan amount offered | Rs 25 lakh |
| The maximum loan amount offered | Rs. 25 Onwards |
| Rate of interest | 8.36 percent onwards |
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Top 5 Government Loan Schemes For Small Businesses In India
More than 40% of the country’s Gross domestic product comes from the SME area, which is likewise a significant manager in India because of the nation’s extending populace. The Indian government has expanded and introduced new business credit programs in light of the significance of SME growth in the post-demonetization era. Presently, we should talk about the Main 5 Government Advance Plans for Private companies in India in the underneath article.
- PMMY- Pradhan Mantri Mudra Yojana
- Start-Up India Loan Scheme
- Credit Guarantee Fund/loan Scheme (CGS)
- Udyogini Funding Scheme
- SMILE launched by SIDBI
1. PMMY- Pradhan Mantri Mudra Yojana
PMMY is the first option on our list of the top five Indian government loan programs for small businesses [2024]. The Pradhan Mantri Mudra Yojana is the most highly regarded option for business owners seeking financial assistance for business expansion. Businesses can receive up to Rs. 10,000 from the Micro Units Development and Refinance Agency (Mudra). 10 Lakh advances gave by the banks. Presently, we should examine whom can approach for this PMMY advance plan underneath.
Eligibility Criteria
This loan program is accessible to all non-corporate small business segments, including sole proprietorship businesses, in both rural and urban areas. Let’s examine each of the following sections.
- Small industries
- Repairing shops
- Small manufacturing firms
- Service sector units
- Vegetable and fruits seller or vendors
- Shopkeepers
- Truck operators
- Food services firms
- Machine operators
- Food processors
- Trading sectors
- Manufacturing sectors
- Services sectors
- And various related firms.
requirements necessary to obtain the loan in accordance with the aforementioned criteria.
- Income tax verification
- GST verifications
- Require six months’ bank statement
- All the documents related to the ownership proof
- KYC documents
Categories Of MUDRA LOAN
The following are the Top 5 Government Loan Schemes for Small Businesses in India’s MUDRA LOAN category.
| Amount of the loan | Details |
| Up to Rs 50,000 | Shishu Loan |
| From Rs. 50,000 to Rs. 5,00,000 | Kishor Laon |
| From Rs. 5,00,000 to Rs. 10,00,000 | Tarun Laon |
2. Start-Up India Loan Scheme
Because it offers an initial interest rate of 8.50 percent, it is also a great loan program for businesses in the small and medium sized industries. The Credit Guarantee Fund Trust administers this loan program for small and macro businesses to meet all of their needs for successful market expansion.
A further point to make is that this loan will be approved within 59 minutes. Thus, the company can receive the loan without delay if it meets the eligibility requirements. In addition, business owners can select their own bank to obtain their preferred loan amount and have it approved within seven to eight business hours.
Eligibility Criteria
A company can apply for one of the Top 5 Government Loan Schemes for Small Businesses in India—the Start-Up India Loan Scheme—if it is GST and IT compliant. Additionally, it should have a half year of satisfying bank history. Presently, we should talk about certain boundaries of qualification rules beneath.
- Must have repayment capacity
- Contain existing credit facility
- Any other factor set by the lenders or bank
Given Loan Amount Under This Scheme Is Given Below
| Particulars | Amount |
| Minimum Loan Amount | Rs. I,00,000 |
| Maximum Loan Amount | Rs. 5 Crore |
| Interest rate | 8.50 Percent onwards |
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3. Credit Guarantee Fund/Loan Scheme
Out of the Top 5 Government Loan Schemes for Small Businesses in India, this one is once again a great fund scheme that the Indian government launched to assist both large and small businesses. Entrepreneurs in the MSME sector can obtain the funding they need through this loan program without the need for collateral. With this funding plan, both new and established businesses can expand their operations in every way. Let us inform you that this funding plan provides loans for working capital of up to Rs. 200 Lakh, in addition to a list of qualified female-owned businesses.
Eligibility Criteria
This loan program is open to entrepreneurs who are involved in the following manufacturing activities: Take a look at the following.
- Involve in Retail trade
- Educational institutional
- Self-help groups
- Have training institutes
- Business owners indulge in service sectors, etc.
4. Udyogini Funding Scheme
Udyogini implies Ladies strengthening, and it is started for ladies’ undertakings to engage them. It is sent off by the Public authority of India through the Ladies Improvement Company for the ladies of this country. This funding program’s main goal is to help all women who are having trouble running their businesses. Women can easily meet all of their capital needs for starting a business through this funding program. Out of the Top 5 Government Loan Schemes for Small Businesses in India, it is the most dependable loan program.
Eligibility Criteria
Below are the eligibility criteria for this Udyogini funding plan.
- Age should be from 18 to 55 years
- The annual income of the family must not be above Rs.15 lakh.
- No income limit if physically challenged or widow.
- Etc.
Requirements For Applying For The Loan
Women must have the following paper to apply for this funding scheme.
- Passport sized photographs
- Must have birth certificates
- Below poverty line card
- Adhaar card
- Caste certificate
- Passbook/bank account
- Ration card
- Income certificates
Can Check:- E Shram Portal CSC Login, Shramik Card Registration Apply Onlin
5. SMILE Launched By SIDBI
Business owners can also use SMILE to lead their companies to greater expansion. The Small Industries Development Bank of India (SIDBI) launched this funding program. This scheme’s primary objective is to provide loans to small and macro industries. Here, entrepreneurs can address every one of the issues of the obligation value proportion with the assistance of this advance plan. Since the SMILE funding scheme began, the offered interest rate has been around 8.36 percent.
Eligibility Criteria
Let’s discuss the eligibility criteria of this scheme. Scroll below to find your content.
- New onboard enterprises
- Existing manufacturers
- Service sectors
- Existing entrepreneurs who require up-gradation
- Etc.
FAQ About Top 5 Government Loan Schemes For Small Businesses In India
Which Is The Best Government Loan Scheme Out Of The Top 5 Government Loan Schemes For Small Businesses In India?
All Government Loan Schemes For Small Businesses In India discussed above are the best and most trustable for any eligible business owner to thrive well in the competitive market.
What Is The Loan Amount Business Owners Get From The Funding Schemes?
All the entrepreneurs who are eligible for the government funding schemes can get a maximum of up to Rs 10 lakh loan amount under the MUDRA scheme with the lower loan amount. All the schemes are mentioned above in the article. You can go through them for more details.
How Can I Get The Government Funding Schemes?
It is easy to avail of the Government funding schemes. You need to be eligible for any one or all the funding schemes and contain the required documents. Everything has been discussed in the above article, you can go through them and enhance your area of knowledge.
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