Government Business Loan Schemes

These government business loan schemes are designed to provide financial support to entrepreneurs, startups, and existing businesses in India. These schemes come with affordable interest rates, minimal collateral, and simplified application processes, making it easier for businesses to access the capital they need.

Here are some of the government loan schemes that support businesses in India:

The Central Government has launched a public limited company, ‘Online PSB Loans Ltd.’ The Small Industries Development Bank of India (SIDBI) and other public sector banks hold the majority shares of the company and offer loan approvals in 59 minutes.

Here are some of the features of the MSME Loan in 59 Minutes:

• You can get two types of loans under this scheme, which include Term Loans and Working Capital Loans

• The scheme facilitates in-principle approval of loans up to ₹1 crore through the portal

• The loan facility under this scheme offers flexible tenures with interest rates starting from 8.50% p.a.

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) is another Government of India scheme to ensure capital flow for Micro and Small Enterprises (MSEs). The Union Ministry of MSME has set up this fund in association with SIDBI. They jointly established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement this scheme.

Here are some of the notable features of this scheme:

• The CGMSE scheme offers a loan ranging between ₹5 Lakhs and ₹5 Crores to the MSMEs

• This scheme also provides an extent of guarantee coverage ranging between 75%-85% of the loan amount

• The interest rate on the loan depends on RBI guidelines, and the loan tenure extends up to 5 years

Pradhan Mantri MUDRA Yojana (PMMY) aims to provide financial assistance to non-corporate, non-farm small/micro enterprises through MUDRA Loans. 

Here are some of the main characteristics of the PMMY scheme:

• You can get three types of loans under this scheme

• Shishu: Loan of up to ₹50,000

• Kishore: Loan from ₹50,000 to ₹5 Lakhs

• Tarun: Loan from ₹5 Lakhs to ₹10 Lakhs

The Credit Linked Capital Subsidy Scheme (CLCSS) is another scheme run by the Union Ministry of MSME. Its aim is to facilitate technology upgradation in the specified 51 sub-sectors/products. 

Here are some of the features of this scheme: 

• You can get an upfront capital subsidy of 15% on institutional finance of up to ₹1 Crore 

• The maximum subsidy on this scheme extends up to ₹15 Lakhs

• 12 nodal banks/agencies, including SIDBI and NABARD, implement this scheme 

National Small Industries Corporation (NSIC) is a government-certified enterprise that seeks to promote and support the MSME sector in the country. The NSIC subsidy scheme falls under different categories, which include raw material assistance, performance and credit rating, marketing assistance, etc.

The Indian Government established the SIDBI in 1990 with a view to promote the development of the MSME sector. The organisation provides a number of loans and subsidies for the inclusive growth of micro and small industries.

The following are some of the notable features of the SIDBI loan: 

• SIDBI provides two categories of loans, ‘Direct Loans’ and ‘Green Loans’

• Express, Speed, Arise, and Sthapan are some types of the ‘Direct Loans’

• Green Finance Scheme, 4E, and eGPS are the types of ‘Green Loans’ 

Apart from seeking finance from these government loans for your business, you can also get business loans through Bajaj Markets. You can compare different loan offers and choose the one that best suits your business’ financial requirements.