Starting a business? Explore these five loan options
What's the story
Starting a business in India can be daunting, especially when it comes to financing. However, there are several loan options available to aspiring entrepreneurs. These loans are specifically designed to meet the needs of small businesses and startups. They provide them with the necessary capital to kickstart their ventures. Here are five promising loan options that Indian entrepreneurs can consider for their business endeavors.
#1
Pradhan Mantri Mudra Yojana
The Pradhan Mantri Mudra Yojana is a flagship scheme aimed at providing financial support to small businesses. Under this scheme, loans up to ₹10 lakh are offered without any collateral requirement. The scheme is divided into three categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). It aims to empower micro and small enterprises by making credit accessible.
#2
Stand-Up India Scheme
The Stand-Up India Scheme is aimed at promoting entrepreneurship among women and SC/ST communities. The scheme provides loans between ₹10 lakh and ₹1 crore for setting up greenfield projects in manufacturing, services, or trading sectors. The loan can be availed from scheduled commercial banks with a repayment period of seven years, including a moratorium period of up to 18 months.
#3
SIDBI Make in India Soft Loan Fund
The SIDBI Make in India Soft Loan Fund aims to enhance the competitiveness of Indian MSMEs by providing soft loans at low-interest rates. Under this fund, MSMEs can avail loans ranging from ₹10 lakh to ₹20 crore for projects related to new technologies or modernization of existing units. This initiative supports various sectors such as textiles, chemicals, and food processing.
#4
National Small Industries Corporation (NSIC) subsidy scheme
The NSIC Subsidy Scheme provides financial assistance to small-scale industries through its credit support program. It offers a 15% subsidy on the interest rate for MSME projects up to ₹1 crore. This subsidy reduces the effective interest rate significantly, making it easier for small entrepreneurs to manage their financial burdens while growing their businesses sustainably.
#5
Bank Credit Facilitation Scheme
The Bank Credit Facilitation Scheme aims at simplifying access to bank credit for MSMEs through empaneled banks under its network. It also provides guidance on project reports, loan applications, and documentation processes, ensuring smooth transactions between entrepreneurs and financial institutions. This initiative helps streamline the borrowing process, making it more efficient and accessible for small business owners across India.