Govt Loans for Small Businesses in India

Govt Loans for Small Businesses in India

What are the different types of government loans available for small businesses in India?

There are several types of government loans available for small businesses in India. Here are some of the most common options:

Mudra Loans: The Mudra loan scheme was launched by the Government of India to provide financial support to micro and small enterprises in the country. Under this scheme, loans up to Rs. 10 lakhs are provided to small businesses, traders, and entrepreneurs.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme: This scheme provides collateral-free loans to small and micro-enterprises. The loan amount can be up to Rs. 2 crores, and the guarantee coverage is up to 75% of the loan amount.

Stand-Up India Scheme: This scheme aims to promote entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST). Under this scheme, loans between Rs. 10 lakhs and Rs. 1 crore are provided for starting new enterprises or expanding existing ones.

National Small Industries Corporation (NSIC) Subsidy: NSIC offers various schemes for financial support to small businesses, including the Raw Material Assistance Scheme, Marketing Assistance Scheme, and Single Point Registration Scheme.

Prime Minister Employment Generation Programme (PMEGP): This scheme aims to generate employment opportunities in rural and urban areas by promoting entrepreneurship. Under this scheme, loans up to Rs. 25 lakhs are provided to individuals for setting up new enterprises.

Coir Udyami Yojana: This scheme provides financial assistance to entrepreneurs in the coir industry. Under this scheme, loans up to Rs. 10 lakhs are provided for starting new coir-based businesses.

Credit Link Capital Subsidy Scheme for Technology Upgradation: This scheme provides financial assistance to small businesses for upgrading their technology. The subsidy amount is up to 15% of the investment in eligible machinery, subject to a maximum of Rs. 15 lakhs.

These are some of the popular government loan schemes available for small businesses in India. However, the eligibility criteria and loan terms may vary for each scheme, and interested applicants are advised to visit the respective websites or contact the concerned authorities for more information.