Government Loans for Small Business Startup in India

India continues to be a nation that promotes ideas and the entrepreneurial spirit, in a 2016 report by NASSCOM India retained the title of the world's third largest startup base; this is a testimony to the facts that ideas and ideators can thrive in the Indian startup ecosystem and come up with socially relevant and technologically robust solutions for our country, this in a time when the startup scene across the world is not in the best of health.

The Government of India is also doing its best to promote new ideas and support the entrepreneurs. An idea remains an idea without the capital backing, and the remaining of this article will elucidate the ways in which an idea can find its funds.

StartUp India

Startup India is a government campaign is aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage startups which will contribute to the economy of India. It was first announced by Prime Minister Narendra Modi on the 15th of August, 2015.

The campaign is focused on eliminating red tape and bottlenecks and to restrict the role of States in policy domain and to get rid of "license raj" and hindrances like in land permissions, foreign investment proposal, environmental clearances.

A startup, as defined by Startup India, is an entity that is headquartered in India, incorporated less than seven years ago and has an annual turnover which is less than 25 crore rupees. Start Up India will also consider companies that work towards innovation, development or improvement of products and processes or are scalable and have high potential to provide employment.

Other Initiatives

There are several schemes in India that help give wings to the dreams of entrepreneurs. In India, both the central and the state government have framed various schemes to cater to the financial requirement of small businesses segments across the country.

The government has also launched the MUDRA Bank, which is a new institution set up for development and refinancing activities relating to small and micro units. The initiative also aims at promoting business among SCs/STs, and women communities.

 

Many public-sector banks like State Bank of India (SBI), Canara Bank, Allahabad Bank, Andhra Bank, and Bank of Baroda offer various financial schemes to SME owners. These schemes help entrepreneurs obtain credit at a low interest rate in a hassle-free manner—provided all your documents are in place. 
In the 2017 Union Budget, the corporate tax for companies was reduced from 30% to 25%, this is expected to benefit small and medium companies with an annual turnover lesser than 50 crores INR

 

Products and services offered by these banks are—working capital loans, short-term loan, corporate term loans, line of credit, etc.

Apply for Loans for Small Business Startup in India

If you are looking for loans to fund your idea, small or medium enterprise, and are unsure about how to apply, then CreditMantri can guide you. You can typically apply for a business loan which can be utilized as working capital for your business, and to cater to other needs of your business.

You can check your eligibility and apply for a business loan by signing up with CreditMantri. It is quick, simple and above all, free.

CreditMantri pre-screens your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chance of your business loan application getting approved is higher.

Click here to sign up and apply for loans, the CreditMantri way!