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How to Get Government Business Loans?

by Steven Brown

Micro, Small and Medium Enterprises (MSMEs), known as the most significant job creator, are part of India’s organised and unorganised sectors. This industry significantly contributes to economic development and gets financial support from the government. These entities utilise such financial support and business loans by the government for various business activities, including infrastructure support and business expansion. Here are the details about how to get government business loans.

How to Get Business Loan By Government

Pradhan Mantri MUDRA Yojana (PMMY)

Under the PMMY scheme, MUDRA (Micro Units Development and Refinance Agency) provides refinancing support to financial institutions. These institutions, banks or NBFCs, give loans to businesses up to Rs. 10 lakhs. The interest rate varies from 1% to 20%. 

The busines loan helps companies manage their working capital, finance equipment, transport vehicles for commercial use, etc.

How to Get this Scheme?

A business can approach lending institutions – Commercial Banks, NBFCs, Micro Finance Institutions, RRBs, and Small Finance Banks to apply online or offline for Mudra loans.

The scheme is open for Non–Corporate Small Business Segment (NCSB) – proprietors/ partnership firms in the manufacturing or service sector, small vendors, artisans, and others in rural and urban areas.

MSME/PSB Loan in 59 Minutes

Businesses can apply online to get this loan from 21+ public and private sector banks and NBFCs. There is a dedicated portal for the scheme where you can get automated loan sanctions. The business loan interest rate is 8.50%. Businesses meeting specific eligibility criteria can get loans under this scheme.

How to Get this Scheme?

This scheme provides quick business loans to existing businesses for business expansion. It gives loans from Rs. 1 lakh to Rs. 5 crores. Key factors determining businesses’ eligibility for these loans include Business Revenue, Repayment capacity, and Old credit facilities. There can be many other factors set by the financial lender to offer the Business Loan By Government.

National Small Industries Corporation (NSIC)

NSIC is a public institution under MSMEs dedicated to encouraging their growth. It provides combined support services to the sector – financial support, marketing support, technology support and others under the schemes.

NSIC Credit Support Scheme provides funds to businesses primarily for raw material procurement for up to 180 days and marketing activities.

How to Get this Scheme?

NSIC finances businesses through syndication with banks. You need to submit the duly filled form to the nearest branch office of NSIC.

Businesses involved in manufacturing and service sectors with MSME or Udyog Aadhaar registration can register with NSIC.

For easy availability of business loans with minimal documentation and eligibility, many entities consider Clix Capital business loans. Find the details below.

Bottom Line

Several lending institutions offer business loans at attractive interest rates. However, several government financing institutions also offer such loans. You can choose from the various government business loans and reap their multiple benefits.

Also Read : Home Equity Loan Rates in Toronto

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