It's the perfect time to turn your business vision into reality with the aid of securing a loan for business government. No matter if you're a small business owner who wants to expand or is just an aspiring entrepreneur, the Indian government comes with multiple funding avenues.

Unfortunately, there are so many options for schemes that you might feel overwhelmed to navigate through them. Well, we're here to let you figure out the right financial solution for your business. Keep reading to know everything about your business loan.

What is a Gov Loan for Business?

When it comes to government loans for businesses, they can be described as financial scheme programs that are offered by the government through MFIs, NBFCs, and private and public sector banks. Such kinds of loans aim to encourage self-reliance, foster entrepreneurship, and boost SMEs.

Types of Government Subsidy Loans and Gov Loans for New Business

There are a range of government schemes that provide loans for business in India by government institutions. We've come up with some of the most popular options of schemes for you.

1) Stand-Up India Scheme

Eligibility: SC/ST and women entrepreneurs who want to set up a new enterprise in trading, manufacturing, and services.

Loan Amount: ₹10 lakhs to ₹1 crore.

Interest Rate: It is linked to the funds marginal cost as per lending rate.

2) National Small Industries Corporation (NSIC) Subsidy

Eligibility: small and medium businesses.

Loan Amount: As required for infrastructure or machinery.

Interest Rate: Varies as per the loan.

3) Pradhan Mantri Mudra Yojana (PMMY)

Eligibility: Any kind of non-farm and non-corporate SMEs.

Loan Amount: ₹50,000 to ₹10 lakhs.

Interest Rate: Varies between lenders.

4) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Eligibility: Existing and new micro and small enterprises.

Loan Amount: More than ₹2 crores.

Interest Rate: Varies by lender.

5) SIDBI loans in partnership with banks

Eligibility: Growing SMEs and new businesses

Loan Amount: Varies by sector and project.

Interest Rate: Generally, lower than commercial loans.

How do I Get a Loan for Business?

Step 1: Identify the Right Loan Scheme

Firstly, we would suggest you determine the loan scheme that fits perfectly for your business requirements. We've mentioned a variety of schemes; you can take help to plan for your specific industry.

Step 2: Check eligibility criteria

After finding the right scheme, look for your eligibility that was mentioned above. Generally, the requirements are a viable business idea, an Indian resident, and must fulfill specific criteria as per the sector or industry.

Step 3: Prepare Necessary Documents

Now, it's time to get ready your certain documents, such as bank details, financial statements, business plan, identity, and address proof. However, some loans might require collateral, though many of them are collateral-free.

Step 4: Submit Your Application

As a next step, you need to apply for the loan either by visiting the bank or online. Fortunately, many government loans for business schemes let the online applications with the aid of official government portals. The portals are such as Mudra Yojana and Stand Up India.

Step 5: Approval and Disbursement

When you're done with verification, the loan will be approved and disbursed into your bank account. However, the process might take a few weeks as per the specific loan scheme and complexity of your business plan.

Conclusion

Get the right financial support with the mentioned scheme to achieve your entrepreneurial success. However, before applying for any scheme, we would highly suggest you do thorough research about it. Now, you're all set to take aid of the scheme and next level your business.