As we all know that business is not a term but an opportunistic platform to show your abilities or capabilities in the marketing world. If you have a desire to be your own boss by running your business successfully then government subsidy loan is going to be a great help for you.
Here we will take you to the best government loan schemes which will be beneficial for a new startup of your business or maintaining the financial life of your well-established business. In this article, we have listed all government subsidy loans for business.
The term subsidy refers to special benefits or services which are given or provided by the governme
nt to a person, business, and organization. Subsidy generally provided or given as a cash payment or tax deduction.
There are numerous government schemes are available in the market to give great support to your business. Let’s first understand.
The MSME – (Micro small and medium enterprises) business loans in 59 minutes scheme was first invented or introduced by the government of India in September. The purpose of MSME business loans in 59 minutes was to provide financial support or help to small start-up business and large business. And there also was a demand for enhancing the MSME growth in India.
The great thing about that government subsidy loan for business is both new and existing businesses can avail the scheme for financial support up to 1 crore and has no demand for collateral requirements, in simple words collateral is valuable or precious property owned by someone who wants to borrow money.
It will take 8 to 12 days to complete the process by approving or disapproving within the 59 minutes of applications. And the interest rate is dependent on the nature of your business.
This MSME Government Subsidy loan scheme is beneficial for businesses which are already existed and borrowers must have six months bank statement.
Applying for a business loan under the scheme. Here are the required documents that you need to have to get the loan for small business or large business.
GST verification is one of the things that is to be done to get an approval of government subsidy loan for business.
Income tax verifications is another verification process to be done to get government subsidy loan.
Documents related to ownership of the business.
Bank accounts statements
KYC details – To verify your identity with photographs and address
Personal and educational details of the applicant.
| Bank Name | Interest Rate | Loan amount | Tenure |
| The central bank of India | 9.1% To 13.1% pa | 10,000 To 5 crore | Up to 10 years |
| Allahabad Bank | 8.65% To 15.75%pa | 5 crore | Up to 7 years |
| State Bank Of India | 8.1% TO 15.65%pa | Up To 500 cr | 15 years |
| Punjab National Bank | 8.65% To 13.45% pa | Up to 25 cr | 7 years |
| Union Bank of India | 9% To 13.75%pa | 50 cr | 10 years |
| Punjab and Sind bank | 10,6% To 13.1% pa | 10 cr | 10 years |
| Oriental Bank Of Commerce | 9.75% To 11.5%pa | 10 lakh to 5 crore | 10 years |
First, you need to fill the signup process details by filling your name, email id, mobile number and use one-time password number to get verified your credentials.
Agree on Terms and conditions
You will have to fill your GST details like number and passwords
Uploading your past 6 months bank statements in pdf format
Providing company address
Selecting the purpose of your loan and providing the details of existing loans
Selecting the bank through you want the loan to be processed
Paying the 1000 fees including tax
Downloading the approval letter.
List of Best Banks Known for starting up a new business or providing Government Subsidy MSME loan:-
MSME loan can be given by a bank or non-banking financial company which does not have full banking licenses such as
Bank of Baroda
Industrial Development Bank of India(IDBI)
Non-banking financial companies like Bajaj Finserv, Tata Capital
Mudra loans is another best government subsidy loan scheme for business. Micro units development and Refinance Agency is an organization created by the government of India for providing business finance to small business (micro-units) having nine people or fewer up to 10 lakhs.
Borrowers can apply online to get this mudra loans and with mudra loans, you don’t have to think about any collateral or security to enjoy the benefits of mudra loans.
Mudra is best known for providing refinance support to small business under the scheme of Pradhan Mantri mudra yojana.
So in simple words, we can say that refinancing is replacing a loan with a new one.
This loan scheme is approved by the public sector banks, private sector banks, small banks, rural banks and etc. here loans can be provided for a funded and non-funded category.
Shishu loans – 50,000 rs – This loan is for entrepreneurs who are thinking of starting a new business.
Kishor Loans – 5,00,000 rs – This government subsidy loan is for those entrepreneurs who want to expand their business.
Tarun Loans –Â 10,00,000rs – For those who want further growth for their business.
Interest Rate Of Mudra Loans:- 11.20% to 20%.
Identity Proof is a must if you want to avail this government subsidy loan for business and Proof of identity will include documents like PAN Card, Adhar Card, Driving licenses, Passport and Valid Photo of ID Card.
Address Proof documents such as bank passbook, bank account
You will also have to give the proof of your business by providing documents like certificates, licenses, documents confirm the business existence.
Providing sale made information from current FY to filling the loan application.
Balance Sheet
Filing up all the mandatory sign up details
Choosing the business plan will give the details under which mudra loan you filled the application like Sishu loans, Kishor Loans, Tarun Loans.
Providing the details of identity proof in digital format. Identity proofs like Passport, Driving License.
Recent photographs
Identity and Address proof of business such as business license, tax registration documents.
| SNO | Bank Name | Interest Rate | Tenure |
| 1 | IDBI Bank | 12.75% To 13.75% | 1-5 Years |
| 2 | Kotak Mahindra | 11.5% To 18% | 1-5 Years |
| 3 | Aditya Birla Finance Ltd | 14% | 1-3 Years |
| 4 | HDFC Bank | 12% To 20% | 1-5 Years |
| 5 | Bank Of India | 12.7% To 14.7% | 1-3 Years |
| 6 | Dena Bank | 13% To 14% | 1-3 Years |
| 7 | Indian Overseas Bank | 14.07% | 1-5 Years |
| 8 | Union Bank Of India | 14.4% | 1-5 Years |
Credit Guarantee Fund Scheme was first started in the year 2000 for providing monetary help to the small and micro business. This government subsidy loan scheme provides collateral-free financing support to small enterprises and for a well-established business and the scheme provides loans up to 10 lakh without having a requirement of collateral and the amount of guarantee covers is 85% for small businesses for credit up to 5 lakh.
The ministry of small, medium, micro, the government of India and small industry development bank of India collaboratively invented a trust called as credit guarantee fund trust for micro and small businesses.
GSTMSC has also brought various structural changes in the current guarantee scheme which would make the scheme more fruitful to MLIS. Let’s talk about the Credit Guarantee Fund Scheme’s eligibility.
Following eligible enterprises are mentioned below to avail credit guarantee fund
For small, medium, micro business
Retailers who are engaged in providing goods and services directly to customers.
Educational institutions
Kerala financial corporation
SIDBI – small industries development bank of India
Export-Import Bank of India
The Tamil Naidu industrial commercial corporation Ltd.
Jammu and Kashmir Development Finance corporation
Delhi Financial corporation
4 foreign banks
21 private sectors banks
The scheme stand up India makes the bank loans easier between 10 lakh and 1 crore for at least one Sc or ST borrower and for one woman borrower per bank branch for starting up greenfield business. Basically, a greenfield business is a process of building the new company on pasture.
Stand up India scheme’s objective is to promote entrepreneurship among women and scheduled caste and tribes which was started by the Indian government.
Stand up India scheme is Fruitful to facilitates the bank loan between 10 lakh to 1 crore, also make the loan easy for non-individual enterprises where 51% of the shareholding is held by ST/SC or woman entrepreneur.
And the one important thing about this stands up India is having a requirement of collateral. Stand up India repayment tenure has a time period of maximum seven years.
Let’s know more about regarding its eligibility, banks which provide the scheme, process to get the scheme and more.
Interest Rate:- Banks MCLR – the marginal cost of fund-based lending rate+3%+tenor premium.
Enterprises who engages in trading and manufacturing or services.
This government loan subsidy provides a loan only for greenfield projects. A greenfield project refers to building new infrastructure on unused land without any need of demolition or destruction.
The borrower must not be a defaulter in any banking institution
Allahabad Bank – Public Sector Bank
Axis Bank – Private sector Bank
Bank of Baroda – Public Sector Bank
Bank of India – Public Sector Bank
Canara Bank – Public Sector Bank
Corporation Bank – Public Sector Bank
Bank of Maharashtra – Public Sector Bank
Central Bank of India – Public Sector Bank
Andhra Bank – Public Sector Bank
Identity Proof is mandatory
Residency proof including Recent electricity bills, telephone bills, voter Id cards
The requirement of Business Address proof
Agreement of rent if a business runs on rent
Balance sheet for the next two years is required
Photocopies of collateral securities
Documents Regarding SC or ST category
SIDBI(Small Industry Development Bank of India) make in India soft loan for small-medium business was established by late Mr. Arun Jaitley and the significant objective of SIDBI make in India loan is to take forward the government of India’s Make in India campaign and help MSME to participate in the scheme and also has taken up the step to provide financial assistance to business in India.
SIDBI Make in India government subsidy loan scheme for the business is considered giving benefits to approx 13000 enterprises.
SIDBI Make in India objective is to provide a soft loan with term loan nature, a term loan is basically a monetary loan and is needed to be repaid in regular basis in a certain period of time. And the loan amount is provided under this scheme minimum 10 lakh rs for equipment finance. General equipment finance is basically making the best use of your loan by purchasing or borrowing assets for a business.
Interest Rate:– 9.15% To at 9.35%Â for a soft loan.
                 9.45% To 9.95% for a term loan.
New organizations in manufacturing and service sector can apply for SIDBI make in India soft loan including new enterprises.
The business has a lot to understand and follow to lead a good business life. And the thing is business strategies are enhancing and changing day by day so, we need to keep these strategic enhancements in our mind and need to take or follow proper steps to get more benefits out of it.
Government loan schemes are helping the micro, small and medium enterprises by giving them financial support to fulfill their day to day expenses. With the collaboration of public sector banks and government institution together loan schemes are getting more popular and easy-going process among business owners.
we have completed our task describing you all the productive government subsidy loan schemes for business whether it is small, micro or large. Besides we have also shared the banks which provide these government subsidy loans schemes for business with their interest rates. So, After observing necessities or requirements for your business go with the best scheme you want for your business.
