Are you planning to start your venture, or do you just want to grow your business? Don’t know how to get the funds? Well, I will guide you through this blog. The best way to fund your business is to take a loan. But not every small-business loan is easily acquired. Some loans have severe credit history and documentation prerequisites, and others have high interest rates. Some are even government-ensured, long-term loans that take into account lower rates.
Presently the most discussed business loan scheme is the ‘MSME Business Loan within 59 Minutes’. The government launched this scheme for the first time in September 2018. This scheme offers loans for monetary help and to encourage MSME development in the nation. Under this scheme, both new and existing ventures can get financial assistance.
In this scheme, the interest rate relies upon the nature of the enterprise and your credit rating.
Documents required to apply in MSME for small-business-loan are:
- Business Registration Proof
- KYC documents of the applicant and the business entity
- Bank statement for the last 9 months
- An organization established by India’s government, Micro-Units Development and Refinance Agency (MUDRA), provides loans to small-business units. This scheme offers loans on the pretext of ‘funding the unfunded.’ Since small ventures and new businesses are frequently left on their own to finance their endeavor, the public authority proposed low-cost credit for such endeavors.
NATIONAL SMALL INDUSTRIES CORPORATION SUBSIDY
The National Small Industries Corporation Subsidy for small ventures offers two monetary advantages – Marketing Assistance and Raw Material Assistance. This subsidy extends support to those small and medium ventures by way of finance who wish to develop/improve their quantity and quality in terms of manufacturing.
CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTERPRISES
Credit Guarantee Fund Scheme for Micro and Small Enterprises is a financial aid scheme for micro and small businesses. Both new and existing ventures that fulfill their qualification standards are eligible for collateral-free credit. When the loan amount exceeds 10 lakh rupees, the credit facility’s resources related to the business unit are likewise considered a security.
CREDIT LINK CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION
This scheme enables small ventures to enhance their process by financing innovative up-gradation. This technological up-gradation links to numerous processes inside the association, such as producing, advertising, supply network, etc. The Ministry of Small-Scale Industries controls the plan.