Upto Rs.5 Crore – Government Business Loan Schemes

Business Loan schemes were started by the Indian Government to assist people, business owners, SMEs, and MSMEs in the trading, manufacturing, and service industries. You can get these loans from different financial organizations, including private and public sector banks, non-bank financial companies, and others.

Top Government Business Loan Schemes 

The following are the top government business loan schemes released by the Government of India

1] Psb59 or MSME loan in 59 minutes

• MSMEs are important to India’s economic growth, suffer significant hurdles in obtaining prompt funding.
• psb59 makes the journey of MSMEs easy by assisting them in raising financing in just 59 minutes of approval for multiple business needs.
• Loan ranges from Rs. 10 lakh to Rs. 5 crores for interest rates starting from 8.5% pa.
• You can get two types of loans – Term loans or Working Capital loans
• You can get a collateral-free loan.

Eligibility and Documentation

• Only for startups and MSME’s
• You must need to be a GST registered business and have a GST number
• ITR proof of one year must be uploaded in XML form.
• ITR proof of three years for the term loan is compulsory
• Bank Statements of last 6 months in PDF format
• You are required to bring every document and give every info asked for to get a loan.

2] Pradhan Mantri Mudra Yojana (PMMY)

• On April 8, 2015, Mr. Narendra Modi Prime Minister of our country set forth the Pradhan Mantri MUDRA Yojana.
• PMMY facilitates loans for non-corporate, non-farm small micro-enterprises.
• Commercial banks, RRBs, Small Finance Banks, MFIs, and NBFCs facilitate these loans.
• Loan ranges up to Rs. 10 lakhs.
• PMMY provide loan under three categories –

Name	Loan Amount	Interest Rate
Shishu	up to Rs. 50,000	1%-12% pa
Kishor	50,000 – 5 Lakhs	8.6% – 11.15% pa
Tarun	5 Lakhs – 10 Lakhs	11.15% – 20%

You can apply for a loan from www.udyamimitra.in 

3] CGTMSE

• CGTMSE means Credit Guarantee Fund Trust for Micro and Small Enterprise 
• This has been made by SIDBI, GOI, Ministry of MSME to fulfill the needs of Micro and Small enterprise and to strengthen the credit flow to the MSME sector.
• More than 100 PSUs, RRBs, Private banks, Financial institution has granted loans under this scheme.
• Loan ranges up to Rs.2 crores and for RRB loan ranges up to Rs. 50 lakhs. 
• CGTMSE includes Term Loans and Working Capital Loans.
• For MSME Retail business, the assurance coverage is 50% of the sum in default, with a maximum ceiling of Rs. 50 lakhs.

4] Stand up India Scheme

• This scheme is for providing loans to SC/ST and Women Entrepreneurs.
• The Loan ranges from Rs. 10 lakh to 1 crore with the lowest interest rate of bank for this category.
• The repayment tenure is of 7 years and a grace period of 18 months is also provided.
• Term Loans and Working Capital Loans are included.
• The enterprise can be in manufacturing, services, trading sector, or agriculture activities.
• For group enterprises, 51% of the stake must be with SC/ST or women entrepreneurs.

Eligibility

• Age above 18
• ST/ST or Women Entrepreneurs
• Only for Greenfield Project.
• For group enterprises, 51% of the stake must be with SC/ST or women entrepreneurs.
• You should not fail to pay to any bank or Financial Institution.

5] National Small Industries Corporation (NSIC)

• NSIC is certified by the government and the Ministry of MSME.
• NSIC is working to promote MSME
• The NSIC has developed a professional-staffed Training and Incubation Center.
• This offers two types of assistance – Raw material assistance and Marketing assistance
• You can use the funds from marketing support to improve your fight and the market value of your products or services you offer.

FAQs 

1). What is MSME?

Small scale firms with a minimum investment in equipment and machinery of Rs. 1 crore and a maximum investment of Rs. 50 crores are covered by the Ministry of Micro, Small, and Medium Enterprises (MSME).

2). How much money can you borrow through the Mudra Yojana scheme?

The maximum loan amount available under the Mudra Yojana scheme for small businesses is Rs. 10 lakhs.

3). What is the smallest loan amount available under government business loan programs?

Under government business lending initiatives, the minimum loan amount starts at Rs. 30,000 per borrower.

4). What is the most straightforward approach to obtaining a government business loan in India?

Government business loans are available in India through different government initiatives for small firms, such as Stand-up India, Mudra Yojana, and psb59 loans in 59 minutes, among others.

5). How does one go about getting a government small business loan to start a new company?

In India, one can get a government small business loan to start a new firm by going to the official website of the government-sponsored initiatives and filling out an online application, or by visiting the bank that gives such loans.