The number of entrepreneurs in India has increased rapidly in the last few years. People are now showing interest in doing their own business. People take the help of loans to start a startup. In such a situation, the Government of India has taken effective steps to provide financial help to startups and existing companies to continue their operations. Let us know about 5 such government schemes with the help of which you can easily grow your business or startup.
1. Pradhan Mantri Mudra Yojana (PMMY)-
Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Prime Minister, under which loans up to Rs 10 lakh are given to non-corporate, non-agricultural small/micro enterprises. These loans are given by commercial banks, RBI, small finance banks, MFIs, and NBFCs, or one can apply online through this portal www.udyamimitra.in. This scheme is divided into three categories, under which:
- Child: Loan up to Rs 50,000/-
- Kishore: Loan from Rs 50,001 to Rs 5,00,000
- Tarun: Rs 5,00,001 to Rs. A loan of Rs 10,00,000/- is given.
Under this scheme, there is zero processing fee for children and adolescents. Whereas for Tarun the processing fee is 0.50%.
2. Stand-Up India Scheme-
To motivate women and SC/ST entrepreneurs at the grassroots level, under the Stand up India Loan Scheme, loans ranging from ₹ 10 lakh to ₹ 1 crore are given without any collateral. The loan is given according to the repayment schedule of 7 years, whose moratorium period can be 18 months. Under the Stand-Up India Scheme, income tax exemption is available for the first 3 years while starting a business. After this, an interest rate of 3 percent is charged it along with the base rate, which cannot be more than the tenure premium.
3. National Small Industries Corporation Scheme-
NSIC provides services under marketing, technology, finance, and other support services. Its objective is to promote the Micro, Small and Medium Enterprises (MSMEs) sector. Two types of loans are given under this scheme:
- Marketing Assistance Scheme: You can use the amount received under this scheme to increase the market value of your offerings. This can be of great help in business promotion, marketing, and increasing market reach.
- Credit Assistance Scheme: Under this scheme, financial assistance can be obtained for the purchase of raw materials, finance, marketing, etc.
4. Credit Guarantee Fund Scheme-
To promote a startup culture, under the credit guarantee scheme of the government, startup companies will get a maximum loan of Rs 5 crore without any guarantee. For this scheme, the guarantee fee paid has been reduced from 2% per annum to 0.37% on the sanctioned amount.
5. MSME Loan Scheme-
To help meet the working capital needs, the government has launched the MSME Loan Scheme. Under this scheme, any new or existing enterprise can get a loan up to Rs 1 crore. Generally, the loan processing takes approximately 8-12 days and approval/rejection of the loan application takes only 59 minutes.