Government Loan for Business Startup in India
The startup culture is vigorous to make the country and business successful; Entrepreneurial funding is required. Due to the growing number of startups in the country, the Government of India is doing its best to support and encourage them. If you are an entrepreneur, you need to take note of the available startup business loans. Most importantly, this loan is not secondary. Government Loan for Business Startup in India.
4E (End to End Energy Efficiency)
Launched in: September 2016
Industry: Sector-agnostic
- The start should not be the default of any bank / financial institution
- It must be a process of detailed energy audit (DEA) by a technical agency / consultant that is a Department of Energy Efficiency (BE) -certified energy auditor
- Detailed Project Report (DPR) is prepared by Technical Agency / Consultant Energy Efficiency Cell (EEC), verified by SIDBI
- The unit should comply with the Environmental and Social Management Framework.
Overview: The main objective is to implement energy efficiency measures across Indian industry on an end-to-end basis.
- Capital cost, equipment / machinery, installation, construction, implementation included for purchase, etc.
- Any other related costs required by the unit provide that it does not exceed 50% of the capital cost.
Fiscal incentives under the 4E scheme:
- The MSME start-up has to pay only Rs 30,000 and SIDBI will be paid for accounting tax and balance charges
- Minimum loan amount up to Rs.10 lakhs and maximum loan amount not more than Rs.150 lakhs Eligible borrowers 90% of the cost per project can be sanctioned under this scheme.
- The amount of eligible loan should not exceed one-fifth of the total turnover of the applicant unit.
Time period: Repayment period includes six months initial moratorium period up to Rs 100 lakh Loans beyond Rs 100 lakh 60 months Loans not more than 36 months.
MUDRA Loan Scheme
In the second phase juvenile, where the loan amount range between Rs.50,000 is Rs.5 lakhs. The loan will not be provided as per the customer’s requirement, and it is all secondary free loan. Government Loan for Business Startup in India.
- Sishu Loans up to Rs.50,000
- Kishor Loans up to Rs.5,00,000
- Tarun Loans up to Rs.10,00,000
Credit Guarantee Scheme
It helps first generation entrepreneurs and small businesses to take small loans at low interest rates.
Stand Up India Scheme
Stand-up Bharat Yojana offers government loans for this business between Rs. 10 lakhs Set up a greenfield venture with at least one ST or 1 crore or SC borrower. The loan period is 7 years.
Market Development Assistance Scheme for MSMEs
It helps them display potential and strengthen the unit.
National Bank for Agriculture and Rural Development
It serves as a facilitator of rural prosperity so that improves institutional development by monitoring and inspecting client banks.
Credit Linked Capital Subsidy for Technology Upgrade
The Directorate of Industries registered and upgraded their systems and plants with new technologies that are eligible for small-scale start-up schemes. Loan amounts up to 1 crore at 15% rate.
Eligibility criteria for the loan
The eligibility criteria are as follows:
There must be a letter of firm incubation. It requires innovative products and planning.
The Government of India is participating at a micro level to ensure credit benefits to small and medium enterprises.
Afinoz you compare offers from different lenders and the best option, you can choose the right one. Apply now to take advantage of business loans.
Standup India
Launched in: April 2016
Industry: Sector-agnostic
Eligibility: For trade, manufacturing, or service industries. The borrower should not default to any bank or financial institution.
Overview: The Government of India has launched this scheme to facilitate bank loans between at least one SC or ST borrower and at least one female borrower per bank branch between Rs.10 lakh and Rs.1 crore, to set up a greenfield industry. So far, 3457 initial online business loan standups have been approved through India.
Fiscal incentives:
- This position offers 75% of the project including loans and working capital, cover a combined loan between Rs 10 lakh and Rs 1 crore
- It is expected that the loan condition will not cover 75% of the project cost if the borrower’s contribution is more than 25% of the project value along with the centralized support of any other scheme.
- The interest rate range (rating range) will not exceed so the lowest applicable rate of the bank [base rate (MCLR) + 3% + speech premium]
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