How to Get a Startup Loan for New Business?
Startup businesses are common in India. Taking a loan for a business is common. There are various banks, investors, and vendors ready to invest in new ideas. However, the dilemma of choosing the best startup loan plan for new business is daunting. The interest rate determined by the bank depends on the amount of loan you have taken and the number of years you take to repay the loan amount. Since new ideas are gradually evolving with time, the Indian government has introduced some schemes for startup businesses in India.
Top Startup Loan for New Businesses in India
There are more than forty thousand startup businesses currently running in India and accessing private loans and debts. However, when the idea is new, it is difficult to get a loan. The MSME sector has limited entrance to formal credit. Thus, the Indian Government has taken the initiative to get a loan to start a business in India.
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Companies can also avail of loans from SIDBI (Small Industries Development Bank of India). The interest rate for loans offered by SIDBI is lower than the ones offered by Banks. Some of the popular bank loans offered by the government are-
1. Bank Credit Facilitation Scheme
the scheme is under NSIC, it helps to meet the status of needed MSME units. The NSIC has joined hands with various banks to offer loans to new startup businesses. The repayment of the loan amount for these businesses in the scheme is between five to seven years. For some cases, the tenure increases up to eleven years.
2. Pradhan Mantri Mudra Yojana
the scheme is under the Micro Units Development and Refinance Agency (MUDRA). It was launched in 2015 intending to offer startup business loans to trading, manufacturing, and service sector exercises. The three stages of the loan in this scheme are-
- Shishu
- Kishor
- Tarun
The amount of loan for three stages ranges between fifty thousand rupees to ten lakh rupees.
3. Credit Guarantee Scheme
The government of India introduced this scheme for both new and running businesses. Other than agriculture, Self Help Groups, retail trades, and educational institutes, the loan is available for other sectors like manufacturing or service companies. The companies can borrow up to two crores under CGTMSE.
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4. Startup India
the scheme was operated by SIDBI in April 2016, which helps the manufacturing, and trading services with a loan of ten lakhs to one crore. The loan needs to be paid back within seven years and is allowed a moratorium of eighteen months.
How to apply for Startup Loan for New Business
- Fill in all the necessary fields, for example, wanted loan amount, work status, annual gross sales or turnover, city, years in current business, collateral sort, and contact details.
- Tick the box to agree on conditions and further Click to “Unlock Best Offers”
- Further, Company type, Nature of business, Type of industry, Gross Annual Profit, Bank Account, any existing EMI, Full name, Gender, Residence PIN code, PAN card, Date of Birth, and Email Address.
- After submitting all the details, the bank’s representative will contact you to continue with loan formalities.
- Once your loan application is approved, within defined working days the approved loan amount shall get disbursed in your mentioned bank account.
You can get more information here: https://www.paisabazaar.com/business-loan/startup-business-loans/#how
Conclusion
There are various business loans offered under Government schemes, investors, banks, etc. It is wise to choose a government scheme to get a loan to start a business in India as the interest rate is too low. You can also get the help of financial planner in Delhi. If you want to get more information or want to increase your financial knowledge, you can read our blogs.
