Top Government Business Loan Schemes in India

Posted on Monday, December 16th, 2024 | By IndusInd Bank

Are you an entrepreneur aiming to scale your business while looking for ways to optimise your financial resources? You will find several government business loan schemes in the market tailored to support entrepreneurs like you in attaining your financial goals. These schemes often come with favourable terms making it easier for you to manage your cash flow. By leveraging these financial loan schemes, you can focus on growing your business and achieving long-term success.

Let’s dive into some of the top government business loan schemes that can help you take your business to the next level.

1)      MSME Loan Scheme in 59 Minutes

The MSME Loan Scheme in 59 Minutes is a transformative government business loan scheme designed particularly for Micro, Small, and Medium Enterprises (MSMEs). Introduced to streamline access to funds, this loan scheme allows both new and prevailing businesses to secure loans of up to₹1 crore with remarkable speed.

What sets this scheme apart is its efficient loan processing system. Loan processing for government loans can be time-consuming, but with this loan option, the whole procedure takes just eight to twelve days. Even more impressive, businesses get an approval or disapproval decision within 59 minutes – hence the name. This makes it an ideal choice for entrepreneurs looking for quick business loans.

2)      Pradhan Mantri Mudra Yojana (PMMY)

The PMMY is another government loan scheme aimed at empowering small businesses, particularly those in the service and trading sectors. This scheme is advantageous for women entrepreneurs who are looking to begin or expand their businesses without the burden of collateral.

MUDRA, or Micro Units Development and Refinance Agency Ltd., serves as a backbone for this scheme by offering refinancing support to banks and Non-Banking Financial Companies (NBFCs) that offer credit to small businesses.

The scheme offers three tiers of loans under the MUDRA umbrella. These include Shishu Loan of up to ₹50,000, Kishor Loan ranging between ₹50,000 and ₹5 lakh, and Tarun Loan ranging between ₹5 lakh and ₹10 lakh.

This structure enables businesses to select the loan amount and terms that match their needs best, making PMMY a unique option among government loans for new businesses.

3)      National Small Industries Corporation (NSIC)

NSIC is a major government initiative that supports entrepreneurs in distinct business aspects such as marketing, technology, and finance. Recognised as one of the best government loan schemes, NSIC offers holistic financial support through two major schemes –

• Marketing Support Scheme

This scheme is tailored to help businesses enhance their market presence. Through Tender Marketing and Consortia schemes, businesses get marketing help that can considerably boost their market reach and promotion efforts.

• Credit Support Scheme

This scheme offers the required financial support for businesses to get raw materials, finance operations, and expand their marketing efforts.

These schemes under NSIC help businesses not only to survive but also thrive in a competitive market environment.

4)      Credit-Linked Capital Subsidy Scheme (CLCSS)

The CLCSS is a specialised government subsidy loan targeted at fostering technological advancement in industries. Whether it is upgrading manufacturing processes, enhancing supply chain management, or improving marketing strategies, this scheme provides a 15% upfront capital subsidy to businesses.

This government loan scheme is open to a wide range of business entities, including private and public limited companies, partnership firms, sole proprietorships, and cooperative companies. The 15% capital subsidy makes CLCSS a top choice for businesses looking to innovate and remain ahead in the market.

What to do When Your Business Needs Urgent Funds

If you require a quick business loan from a reliable financial institution, IndusInd Bank offers an efficient and convenient option. Here are the key benefits of IndusInd Bank’s Quick Business Loan:

IndusInd Bank’s Quick Business Loans are designed to meet the immediate financial needs of businesses without the hassle of opening a new current account or needing extensive documentation. The digital process ensures a smooth and swift experience, making it simpler for businesses to get hold of the funds they require.

Also Read: How Do Business Loans Work?

Ending Note

Government business loan schemes offer a wide range of options for entrepreneurs looking to begin or expand their businesses. From the quick and efficient MSME Loan Scheme in 59 Minutes to the specialised support offered by CLCSS, there is a government loan scheme tailored to meet your specific requirements.

For those in need of quick business loans, IndusInd Bank offers a digital, fast, and customer-friendly solution, ensuring that your business continues to grow without financial stress.

So, are you ready to take the next step? Apply for a business loan today and turn your business dreams into reality!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.