There are so many things to worry about if you have to think about how to start a business. Some Business minds who can be great entrepreneurs of the future tend to back off from their plans due to lack of funds and investments.
It is fortunate that the government, as well as well-wishers or angel investors, have taken the initiative to fund young entrepreneurs who are ready to step into the business world and make a living out of the opportunities they have in hand and the ideas they have in mind.
So, are you one of the young entrepreneurs who is looking for financial backups to start a journey in business? Well, sit back and relax! Here are a few small business loans from the government for small entrepreneurs in India:
- The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)
This is a Scheme collaborated with SIDBI (Small Industries Development Bank of India) for MSME (Micro Small and Medium Enterprises). This scheme that is run by the government facilitates a flow of collateral free credit to units to business in this sector. The government through this scheme allows start-ups or entrepreneurs to borrow up to Rs 100 Lakh in term loans or working capital loans as per the eligibility criteria.
- The Stand Up India Scheme
This is another government scheme that pays attention more towards Sc/ST women who want to start their own businesses. It empowers such women entrepreneurs and allows them to borrow between 10 lakh to 1 CR to start a business in trading manufacturing and others and can be repaid in 7 years.
- The Mudra Loan Scheme
This scheme provides refinance supports for lending money to small businesses having loan requirements up to 10 lakh. This scheme that runs under the Pradhan Mantri MUDRA Yojana has offerings like Technology Enabler, Refinance for micro units to commercial banks NBFC/RRBs/Cooperative banks/MFIs, Credit Guarantee to Mudra Loans, Development to Promotional Supports and others.
Read the guide here to promote your business online at minimum cost- How to promote business online
- ZED Certification Scheme
This scheme gives financial support to manufacturing industry under MSMEs having Udyog Adhar Memorandum. The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc.
This is A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE). The main objective of the scheme is to (a.)Create new jobs and reduce unemployment (b) Promote entrepreneurship culture in India (c) Boost Grassroots economic development at the district level (d) Facilitate innovative business solution for unmet social needs, and (e) Promote innovation to further strengthen the competitiveness of the MSME sector.
- Annapurna Scheme
This is one of the small business loans. This is a centrally sponsored scheme that gives financial support to food catering business and sanctions loans up to Rs 50,000. The loan must be repaid within 3 years.
The post Small Business Loans that can Benefit Small Entrepreneurs in India appeared first on Problem Solution.