Home LOAN TIPS Taking Business Loan in India Easier Than You Think 

Taking Business Loan in India Easier Than You Think 

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A budding entrepreneur needs the right funding for its business to be successful. There are several schemes to avail from. Keeping in mind your requirements and eligibility. You can easily avail them too. 

Indian Government initiated Business loans for Start Ups 

Pradhan Mantri Mudra Yojana (PMMY)

This initiative taken by Micro Units Development and Refinance Agency (MUDRA) is aimed to provide loans to individuals working in the Manufacturing, Trading & Service Sector.

Pradhan Mantri Mudra Yojana (PMMY)

Launched in 2015, this scheme can be availed under three heads — Shishu, Kishor, Tarun. The amount ranges from 50,000 to 10 lakh. Shopkeepers, artisans, vegetable vendors, machine operations, repair shops, etc.

 

Bank Credit Facilitation Scheme

An MSME can look forward to this scheme for credit. An initiative headed by National Small Industries Corporation (NSIC). NSIC has partnered with various banks to provide credit to MSMEs with a credit period from 5 to 7 years. In certain cases, the credit period can extend upto 11 years also. 

 

Stand Up India 

Headed by SIDBI, Stand Up India is a scheme aiming to provide loans to entrepreneurs in the segment of manufacturers, traders, and services. The loan provided ranges from 10 lakh to 1 crore. The period for repayment of credit ranges upto 7 years. 

 

Sustainable Finance Scheme 

 

As the name suggests, this scheme has been formulated to loan out to industries dealing in green energy, technology hardware, non-renewable energy. This scheme too is headed by SIDBI. An initiative started with the motive to financially help industries working with cleaner production/energy efficiency and various sustainable development projects. 




 

Steps to Remember while opting Business Loans: A Guide for Start-ups 

There are certain things to be mindful of. So that your process to bank loans is easier. This article here has simplified such criterias. So that you can smoothly work through the whole process. 

LOAN ELIGIBILITY CRITERIA 

 

 

  • An applicant must have a business plan
  • An applicant must be a citizen of India 
  • An applicant must not exceed 65 years of age and should not be below 21 years of age 

 

An Applicant Must have a Business Plan. WHAT MUST AN APPLICANT DO?

 

An applicant’s business plan must be 

 

 

  • Crisp and detailed
  • Must clearly state how they are going to make use of the loan amount in their business plan
  • Briefly state the objectives and goals that the business aims to achieve. Along with explanatory charts highlighting prospective growths and returns from the venture.
  • Must have clear proximation of Funds

 

DOCUMENTATION YOU WILL BE NEEDING 

  • 2 copies of passport sized photographs 
  • Identity proofs (PAN card, Aadhar Card, Voter’s ID, Driving license)
  • Age Proof (PAN card, Aadhar card)
  • Bank Statements of last six months 
  • Income Proof
  • Signature Proof 
  • IFSC code 

 

59 MINUTES TO A LOAN FOR YOUR MSMEs

A government-initiated scheme that approves your MSME loan in 59 minutes. If you are in need of a business capital loan ranging between 10 lakhs to 1 crore. This could be your choice of scheme. Along with interest rates going as low as 8% (it can fluctuate as per a person’s credit profile)

 

But to remember a few things while opting a MSME loan in 59 minutes. Even though the approval may take 59 minutes. Yet, the actual disbursal might take 7- 8 working days. Also, this loan is subjected to risk and charges a processing fees of Rs.1000 + Taxes. 

Documents Required 

In Case you’re planning on going for an MSME loan in 59 minutes. It is advised you know of the documents you will be needing. 

 

 

  • Bank statements related to business (of past 6 months)
  • Know your customer (KYC)
  • Last 3 years income tax returns, tax code, e-filing details 
  • GST certification, GST ID, and password
  • Documents of current business
  • Personal and Educational details

LOANS IN INDIA FROM THE BEST BANKS 

HDFC Business Growth Loan 

 

 

  • A bank loan offered without any security, collateral, or guarantor. The loan limit ranges from 40 lakhs to 50 lakhs. 
  • Individuals who are self-employed, proprietors, partnership firms. Businesses involved in manufacturing, services, or trading. 
  • Aided with special benefits, like overdraft, and flexible tenures of upto 48 months. 

 

ICICI Bank Business Loan

 

 

  • Business loans offered by ICICI bank are for individuals wanting to purchase new assets such as plants, machinery. Setting up a new industrial unit, expanding your existing unit. 
  • Loans can be availed in the form of working capital, term loans, composite loans. 
  • This loan has a maximum repayment tenure of 7 years

 

IDFC bank first business loan

 

 

  • Business loans can be taken for upgrading existing business, purchase of equipment, etc. 
  • This loan is termed as “business installment loans”. Since this loan needs you to repay in installment at fixed monthly intervals. 
  • It is unsecured, requires no collateral or guarantor, and available for businesses, professionals, and non-professionals. 
  • Loan amount can range from upto 40 lakhs to 75 lakhs. 

 

CITI bank business loan

 

 

  • Individuals involved foreign exchange/ import export finance. 
  • Business loans can be availed in foreign currency 
  • Loans can be availed in the form of working capital loan, short term & long term loan, overdrafts, import & export finance. 

 

AXIS bank business loan

 

 

  • Professionals can avail loans from Axis Bank to set up their offices. Professionals such as CAs, Doctors, Engineers, etc. 
  • The business loan amount ranged upto 50 lakhs 
  • Loan doesn’t require any collateral 

 

Conclusion 

 

Availing Business Loans is a work full of complications. Which is why research is very important. To understand what loan will suit you and your business. It has to be sustainable to your business requirements.

 

This article has aimed at attaining information in all possible loan segments. It has been aimed that this article is all-inclusive. And carries only correct information. For a deeper understanding of any particular segment, it is advised you separately search about it.

 

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