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Top 5 Government Business Loan Schemes in India

In recent years, India has been one of the top emerging markets in the world. And undoubtedly, the small and medium businesses of the country have contributed significantly to this growth. To promote development and funding to various business owners, the Indian government has initiated several finance schemes.

If you are a business owner looking for adequate funds, these schemes can provide you with affordable finance to suit your requirements. You can plan your EMIs using a business loan EMI calculator available online and avail of a quick loan from your preferred lender.

Take a look at the top 5 loan schemes in India to get started.

Pradhan mantri mudra yojna

The PMMY scheme provides easy finance to up to Rs. 10 lakhs to non-corporate, non-farm small, and micro-enterprises. These are start-up loans offered to businesses involved in non-farm activities. Interested individuals can apply either offline by visiting the lender or online on the official MUDRA website. This scheme is also open to women entrepreneurs.

Credit guarantee fund trust for micro and small enterprises

The central government launched this scheme in 2000 to develop a seamless credit delivery system for MSMEs. Under this scheme, you can secure a collateral-free loan worth Rs. 10 lakhs for multiple business needs. New and existing MSMEs engaged in the manufacturing or services sector can opt for this loan. You can contact the lender to determine your business loan eligibility.

Stand-up India

Started by the Small Industries Development Bank of India, this scheme provides funds to business owners belonging to the SC/ST category and women entrepreneurs. You can secure a business loan between Rs. 10 lakhs and Rs. 1 crore, covering 75% of the project, including term loan and working capital. This loan is extended to at least one SC/ST borrower and one woman borrower per branch.

National small industries corporation subsidy

Launched in 1955, this program aims to promote the growth of small businesses. NSIC offers two types of financial assistance: raw material and marketing assistance to small-scale industries (SSIs). Under the Credit support scheme, you can get easy finance for both indigenous and imported raw materials. Whereas, with the marketing assistance program, you can access cost-free tender marketing to boost your market value.

Additionally, this program exempts SSIs from paying a security deposit while obtaining the loan.

PSB/MSME loan in 59 minutes

Under this scheme, the central government introduced a dedicated portal to offer instant loans to individuals who need help expanding their businesses. You can get a loan approved ranging from Rs. 1 lakh up to Rs. 5 crores within 59 minutes at a business loan interest rates starting from 8.5%. You can expect to get the loan amount within 7-8 working days of the loan approval.

The bottom line

Thanks to such initiatives by the government, you can run your business smoothly with sufficient funds at your disposal. You can get an affordable loan under any of these schemes by applying online or offline with instant approval. However, make sure to check your business loan eligibility before moving forward with the application.

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