Loans for Startups
Applying for a startup business loan is quite easy and simple. Many financial institutions provide online applications for startup loans. All one needs to do is visit the official website fill the form and submit the required documents. Here are some schemes launched by the government for startup loans and some institutions that can help for the same:
PRADHAN MANTRI MUDRA YOJNA: MUDRA (Micro units development and refinance agency ltd.) is a non- banking financial company for the support of small businesses and startups in the country. It provides loans up to Rs.10Lakh. Presently the authorized capital of MUDRA is 1000Crores and the paid-up capital is 750crore, fully subscribed by SIDBI.
CREDIT GUARANTEE FUND TRUST FOR MICO AND SMALL ENTERPRISES: CGTMSE has been working for the last 18 years. It provides collateral-free loans to small businesses and startups and provides loans up to Rs. 10Lakh. The extent of guarantee cover is 80%
(i) Micro and Small Enterprises operated and/or owned by women; and
(ii) All credits/loans in the North East Region (NER) for credit facilities up to Rs.50Lakh. In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities up to Rs.200Lakh.
NATIONAL SMALL INDUSTRIES CORPORATION SUBSIDY: NSIC has been working from 1995 to promote aid and foster the growth of MSEs in the country. It provides integrated support services under Marketing, Technology, Finance, and another Support service. It has planned many schemes to support entrepreneurs in their marketing.
CREDIT LINKED CAPITAL SUBSIDY SCHEME: The objective of CLCSS is to upgrade technology in MSEs and provide a capital subsidy of 15% on institutional finance. Through its government plans to reduce the production cost that occurs due to providing goods and services by SMEs. Rs.15Lakh is the maximum amount that one can get as a subsidy.
EQUIPMENT FINANCING: It provides capital for the purchase of new or used equipment. For startups and small businesses, it is very easy to avail this loan. Under this most lending companies cover 80%- 90% of the cost and the rest is estimated to be covered by you.
COIR UDYAMI YOJNA: This is a credit-linked subsidy scheme that covers most of the project cost of up to Rs.10Lakh. This scheme has many objectives such as: to modernize the coir industry by the adoption of modern technology in the production and processing of coir and coir products.