As an entrepreneur in India, securing funding can be one of the biggest challenges you face. Fortunately, there are several loan schemes available in the country that are specifically designed to meet the needs of small and medium-sized businesses. Here are the top ten loan schemes for business in India:
1. MUDRA Loan Scheme:
The MUDRA (Micro Units Development and Refinance Agency) loan scheme was launched by the Government of India to provide financial assistance to micro and small businesses. These loans can be used for a variety of business purposes, including working capital, purchasing machinery and equipment, and expanding operations.
2. Stand-Up India Scheme:
The Stand-Up India scheme is a government initiative designed to provide loans to women and SC/ST entrepreneurs. The scheme offers loans of up to Rs. 1 crore for starting a new business or expanding an existing one.
3. Pradhan Mantri Mudra Yojana (PMMY):
The Pradhan Mantri Mudra Yojana is a credit scheme launched by the government to provide financial support to micro-enterprises. Under this scheme, loans of up to Rs. 10 lakhs are provided to non-farm small/micro enterprises.
4. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
The CGTMSE scheme is a credit guarantee fund that provides collateral-free loans to small and medium-sized enterprises. The scheme covers both term loans and working capital loans and provides a maximum guarantee coverage of up to 85% of the loan amount.
5. SIDBI Make in India Soft Loan Fund for MSMEs:
This scheme is designed to provide soft loans to micro, small, and medium-sized enterprises for meeting the cost of technology upgradation. The loan amount ranges from Rs. 10 lakhs to Rs. 1 crore and has a repayment tenure of up to 10 years.
6. National Small Industries Corporation Subsidy:
The National Small Industries Corporation (NSIC) subsidy is a scheme for providing financial assistance to small and medium-sized businesses. Under this scheme, businesses can get a subsidy of up to 15% on the purchase of machinery and equipment.
7. Prime Minister Employment Generation Programme (PMEGP):
The PMEGP is a credit-linked subsidy scheme that provides financial assistance to new and existing micro and small businesses. Under this scheme, businesses can get a subsidy of up to 35% for general category entrepreneurs and up to 50% for SC/ST and women entrepreneurs.
8. National Bank for Agriculture and Rural Development (NABARD) Dairy Entrepreneurship Development Scheme:
This scheme is designed to provide financial assistance to dairy entrepreneurs. Under this scheme, loans are provided for establishing new dairy farms, purchasing milch animals, constructing sheds, and purchasing milk processing equipment.
9. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS):
The CLCSS scheme is designed to provide financial assistance to small-scale industries for technology upgradation. The scheme provides a subsidy of up to 15% on the investment made by the enterprise in plant and machinery.
10. State Bank of India General Credit Card Scheme:
The State Bank of India General Credit Card Scheme is a unique scheme that provides working capital to small and medium-sized businesses. The scheme is designed to meet the day-to-day working capital requirements of businesses and provides quick and hassle-free access to credit.
In conclusion, securing funding is crucial for the success of any business. With these top ten loan schemes for business in India, entrepreneurs have access to a variety of financial assistance options. It's important to research and understand the terms and conditions of each scheme before applying to ensure that you choose the one that best meets the needs of your business.