Government Loans for Startups in India

More striving startups in India are coming out with passionate and dedicated ideas. But to keep them growing in the market requires money which can be arranged by the Bootstrapping, Crowdfunding, Angel Funding and more.
As after looking towards no.of startups raising in the country, the Government of India has started some business loan schemes to promote and support. These business loan schemes have different eligibility criteria without of any collateral.

Government Business Loan Schemes

Here are schemes for entrepreneurs who are thriving to grow in the market but lagging behind just because of lack of fund in their account.

1. MUDRA Loan Scheme

Firstly, Pradhan Mantri MUDRA Yojana (PMMY) in short Known as MUDRA scheme. MUDRA ( Micro Units Development and Refinance Agency Ltd) is an agency launched by the Government of India on April 2015. In this, the loan is provided to the non-corporate and small business firms up to Rs. 10 lakhs. Under this scheme, there are three categories available for the startups in India.

1.Shishu: It covers loan up to 50,000 at 1% of interest rate per month. This is for the primitive stage of any startups in India.
2.Kishor: In this, the loans are covered between 50,000 and up to 5 lakh. This is for those businesses which have either started or simply needs this much amount to start.
3.Tarun: It is the highest amount to give as a loan to any startup. For this, an entrepreneur must clear the eligibility criteria before applying for it. The loan covers up to 10 lakh.

2. Credit Guarantee Scheme (CGS)

This business loan scheme is launched by the Government of India in partnership with SIDBI(Small Industries Development Bank of India). CGS is launched for the MSME(micro and small enterprises), which are eligible to take in the form of working loan or term loan. A small business can borrow up to Rs100 lakh as per company feasibility.

3. Stand Up India Scheme

This facilitates bank loan between 10 lakh and 1 crore to empower SC/ST and women to set up greenfield enterprise. The repayable time for a loan is 7 years. It gives an opportunity to start a manufacturing, trading or service unit.

4.NSIC Scheme

Lastly, NSIC stands for National Small Industries Corporation which provides the fund for startups in India. It has started in collaboration with private and national banks. It helps in two ways

1. Raw Material Fund: To provide loan for both indigenous and imported raw material for small business.
2. Marketing Support Fund: To enhance the market value and quality of the products.
However, It provides an opportunity for SMEs to improve and grow their manufacturing ability along with competitiveness.

Conclusion

Furthermore, these schemes are supporting in every way for establishing enterprises. As these SMEs are the backbone of the economy of the country. For longevity and improvement of them in the market is necessary to promote at an extent.