How to get loan from Indian Government?


Gautham Gautham
Answered on June 18,2020

There are different types of loans.

MSME Business Loans in 59 Minutes
The Indian Government launched the MSME business loan scheme as a working capital loan. As an MSME, you can get a loan sanction of up to Rs.1 crore within just 59 minutes. The best part is you get this loan at 8% rate of interest, keeping the repayment easy on your pocket. A reservation of 3% is available for women entrepreneurs, so as to offer a quick sanction to the increasing number of women helming their own business today.

MUDRA Loans
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme for providing loans upto INR 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.All the details about Mudra Loan is available here.

Credit Guarantee Fund Scheme for Micro and Small Enterprises
the Credit Guarantee Fund Trust for Micro and Small Enterprises has been facilitating collateral-free loans for MSMEs. Any scheduled commercial bank and regional rural bank can become a part of the scheme by empanelling itself as a lending authority. The agency sanctions loans to eligible Micro and Small Enterprises basis their credit standing via the lending agencies in question.
The scheme provides working capital loans up to Rs.10 lakh and has provisions for bigger sanctions as well. However, to get approval for an amount exceeding Rs.10 lakh, you will need to mortgage your business assets and land.

National Small Industries Corporation Subsidy
NSIC offers MSMEs two kinds of funding benefits: raw material assistance and marketing assistance. Any business qualifying as a micro and small enterprise having EM Part-II (Optional)/ Udyog Aadhaar Memorandum (UAM) is eligible to register for this government business loan scheme under its Single Point Registration Scheme (SPRS).
Once you qualify, you can opt for the raw material assistance scheme, where funding for both indigenous and imported raw material is covered. Under the marketing support, you can avail funds and use it to enhance your competitiveness and the market value of your offerings. The NSIC also overlooks the functioning of an MSME and supports it in its endeavour to enrich production and quality.

Credit Link Capital Subsidy Scheme for Technology Upgradation
This government business loan scheme funds technological upgradations. Under the varied facets of the scheme, you can access finance to enhance your technology and equipment. You can use the funds from your sanction to undertake a revamp related to numerous processes for your business, like manufacturing, marketing, and supply chain.
Through this scheme, the government plans to reduce the production cost borne for creating and providing goods and services by small and medium enterprises. This will pave the way for a more competitive local and international market ecosystem.
Under this scheme, you can get an upfront 15% capital subsidy for your business. However, the maximum amount you can avail as subsidy is capped at Rs.15 lakh. In order to be eligible for a loan under this scheme, you need to apply as a sole proprietorship business, partnership firm, and co-operative or private and public limited company.


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