Government Business Loan Schemes
There are various business loan schemes started by the Government of India that can be chosen smartly. Visit to know the loans here!
Micro, Small, and Medium enterprises (MSMEs) solve economic problems like unemployment, income inequality, and many others. The MSME sector is responsible for providing employment to millions of people in the country and recruiting talents from different parts of the world that contribute significantly to the country’s GDP. However, this endeavour requires funds.
This article discusses the various Government business loan schemes of India.
Business Loans By Government
Being the largest employer, the MSME sector contributes almost 30% to the overall GDP of the country. The Government of India offers various credit schemes to strengthen MSMEs and encourage sector-specific activities.Government loan schemes provide financial support to MSMEs for business activities and drive expansion. A few of those schemes include
1. MSME Loan In 59 Minutes
Under this scheme, MSMEs can get a loan of up to INR 5 crore (minimum INR 1 lakh) in under 59 minutes at an interest rate of 8.5% from public and private banks and NBFCs.This scheme is also known as the “PSB Loan in 59 minutes,” in which the Government of India introduced a quick loan portal for businesses who need funds quickly to expand. Eligible factors include:
• Income/Revenue
• Borrower’s repayment capacity
• Existing credit facilities
• Lender-specific factors
2. Pradhan Mantri MUDRA Yojana (PMMY)
“MUDRA” in the Pradhan Mantri MUDRA Yojana stands for Micro Units Development and Refinance Agency Ltd. It offers support to the banks and NBFCs for lending to Micro units with a loan requirement of up to INR 10 lakhs under this scheme. According to the growth and development stage, MUDRA divides the loan category into:• Shishu: Loan coverage up to INR 50,000 at an interest rate of 1% to 12% per annum
• Kishore: Covers a loan amount between INR 50,000 to INR 5 lakhs at 8.6% to 11.5% per annum
• Tarun: This category gives a loan coverage of up to INR 10 lakh (minimum INR 5 lakh) at 11.15% to 20% per annum
3. Credit Guarantee Fund Scheme For Micro And Small Entreprises
Under this scheme, the Government of India allows a collateral-free loan to the MSME sector up to INR 200 lakh. Existing or newly established businesses engaged in manufacturing or service activity are eligible to avail of the benefits of this scheme.Sapna aapka. Business Loan Humara.
Apply Now
4. National Small Industries Corporations (NSIC)
NSIC is an Indian Government enterprise under MSMEs with an ISO certification. It extends its support services across the country, including finance, marketing, credit, technology, and other allied solutions.
5. Credit Linked Capital Subsidy Scheme (CLCSS)
The primary objective of this scheme is to provide technology advancement to MSMEs. This scheme majorly focuses on rural and semi-urban areas. It provides a 15% subsidy on investment in eligible machinery with a cap of INR 1 crore on the subsidy.
Apply For A Business Loan With IIFL Finance
IIFL Finance is a leading business loan scheme provider to MSMEs. We offer quick loans that are perfect for MSMEs with small financial requirements up to INR 30 lakh. You can check the business loan interest rate at your nearest IIFL Finance branch or online.
The entire process, from application to disbursement, is 100% online. The disbursals are quick and take 24-48 hours. You can fulfill various business needs and repay them per your preferred cycle. Apply for an IIFL Finance business loan today!
Frequently Asked Questions
Q.1: Why is the government of India providing business loan schemes?
Ans: The government is trying to support the MSMEs of the country with business loan schemes as the sector contributes around 30% to the overall GDP of the country.
Q.2: What are the various government business loan schemes available?
Ans: MSME Loan in 59 Minutes, Pradhan Mantri MUDRA Yojana (PMMY), Credit Guarantee Fund Scheme, National Small Industries Corporations (NSIC), and Credit Linked Capital Subsidy Scheme (CLCSS) are among the business loan schemes available for MSMEs.
Sapna aapka. Business Loan Humara.
Apply NowDisclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
