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Explore Top Government Business Loan Subsidy Schemes in India

Explore Top Government Business Loan Subsidy Schemes in India

India aspires to become a developed economy but to achieve the dream of Viksit Bharat@2047, financial support is to be provided to industries, especially Micro, Small, and Medium Enterprises (MSMEs), to push them upwards through various business subsidy schemes. To improve the financial health of the industrial sector, the Central and State Governments have launched multiple schemes offering subsidy on business loans. 

 

In Budget 2024, the government has also created a corpus of 1 lakh crore to provide 50-year loans at low or nil interest rates to encourage the private sector to scale up research and innovate in sunrise sectors. This article will highlight some of the popular loan schemes for businesses. 

 

Different Government Business Loan Schemes

 

Pradhan Mantri Mudra Yojana – To cater to the financial needs of small businesses, the scheme offers a loan of up to INR 10 lakhs without any collateral. Mudra loans are categorized into 3 categories – Shishu (loans up to INR 50,000), Kishor (loans between 50,000 to INR 5 lakhs), and Tarun (loans between INR 5 lakhs and 10 lakhs). This will ensure businesses receive the required financial boost for their growth and development. Ultimately, this generates more employment and leads to GDP growth in the country. 

 

MSME Loan in 59 Minutes - With psb59, the pioneers in MSME financing, you can get digital approvals for MSME loans ranging from ₹10 lac to ₹5 crores within 59 minutes with a simple, single application. These loans make the life of MSMEs easier with affordable interest rates, collateral-free business loans, and tax benefits. MSME loans are generally used for short-term credit requirements to manage their cash flows.

 

National Small Industries Corporation (NSIC) - To meet the credit requirements of MSME units, NSIC has launched the Bank Credit Facilitation scheme, where it has entered into a Memorandum of Understanding with various nationalized and private sector banks. It provides the required support to MSMEs, from facilitating credit to helping them in the documentation process.

 

SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE) aims to finance small enterprises through soft loans. Soft loans include attractive interest rates, extended periods of loan repayments, and speedy dispensation of financial assistance like machinery loans through the contactless platform. The scheme majorly emphasized covering newly emerged enterprises in the manufacturing and service sectors. SIDBI has been dedicated to the evolution of a vibrant MSME ecosystem. It has also provided cumulative assistance of around Rs.5.40 lakh crore, majorly channeled into the MSME segment. 

 

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) - Credit Guarantee Scheme (CGS) was launched to strengthen the credit delivery system and to facilitate the flow of credit to the MSE sector, creating access to finance for unserved, under-served, and underprivileged. It aims to make finance available from conventional lenders to new-generation entrepreneurs. As the government is the guarantor here, this scheme not only fosters the growth of enterprises but also reduces the risk of lenders. Over the past 22 years, CGTMSE has provided guarantee cover to collateral and third-party guarantee-free credit facilities extended by eligible Member Lending Institutions [MLIs] to MSEs.
 

Stand Up India – It facilitates bank loans between INR 10 lakhs and INR 1 crore to at least one scheduled caste (SC) or scheduled tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. Not just encouraging diversity in entrepreneurship, this scheme also brings forward marginalized sections of our society. 

 

State governments also launch business subsidy schemes to help the industrial sector financially. The governments of Haryana, Uttar Pradesh, and Rajasthan have their respective industrial policies and specific sector schemes offering business subsidies. Enterprises can avail of the interest subsidy on business loans provided under various state government policies. 

 

Why Hire Subsidy Consultants?

 

To nurture entrepreneurship in the country, the Indian government is taking active steps by launching numerous subsidy schemes for businesses. Providing business loan on subsidy can financially support small businesses and let them grow and thrive in the market. But to avail of these benefits, entrepreneurs need to hire subsidy consultants who are experts in navigating through the complex world of business subsidy schemes. 

 

Business owners generally don't know the application procedure or whether they meet the eligibility criteria. Bureaucratic processes are also filled with complexities and require a lot of compliance. Subsidy consultants know the intricacies of applying for subsidies and can better address the issue.  

 

SubsidyPro is among the best subsidy consultants in the market. It simplifies the whole application process for your business and reduces the chances of rejection of your application form. We first identify the best suitable business subsidy scheme for your company and check whether you meet the eligibility criteria. Our professionals will help you in the documentation process and get all clearances required under the scheme. Aspiring entrepreneurs can transform their dreams into reality with the help of SubsidyPro, which helps businesses grow and succeed!