The start-ups are increasingly on the rise in the past years and entrepreneurs need funds to keep their business up and running. Having a great business idea itself is not enough. To support those businesses
thrive and entrepreneurs to achieve their dreams, Government have come up with various schemes to ensure providing the finances they need. These loans are available without any security at attractive interest rates.The Government of India provides Government Loans for Business startups to the Individuals.
Bank Credit Facilitation Scheme- Usually, the unsecured business loan under this scheme is offered for a tenure ranging from 5-7 years, but in special, cases it can also be extended till 11 years. This scheme is headed by National Small Industries Corporation targets in meeting the requirements of MSME units.
Coir Udyami Yojana - This scheme is headed by the Coir Board and the fund's project costs up to Rs 10 Lakh and one cycle of working capital. The primary aim of this scheme is to set up coir units across India.
National Bank for Agriculture and Rural Development (NABARD) - NABARD bank aims to provide and regulate other facilities that help to promote and develop agriculture, cottage and small industries, handicrafts and village industries. NABARD is focussed on providing refinance to lending institutions in rural areas.
Credit Guarantee Scheme (CGS) - Under this scheme, Apply for a business loan on online of Rs 200 lakh can be raised. It caters to both kind of businesses, for start-ups and also for existing businesses in need for expanding it. This scheme grants loans to service and manufacturing sector industries.
Pradhan Mantri Mudra Yojana - Headed by the Micro Units Development and Refinance Agency (MUDRA), the scheme was launched in 2015, which offers loans under various categories- Shishu, Kishore, and Tarun in amounts ranging from Rs 50,000 and Rs 10lakh. This scheme aims at offering loans to all kinds of manufacturing, trading, and service sector companies.
StandUp India - This scheme was launched in April by SIDBI, which aims to provide loans to industries in dealing with Manufacturing, Trading or Services. One can avail loans ranging from Rs 10 lakh and Rs 1crore under this scheme.
Market Development Assistance Scheme for MSMEs – This scheme focusses on micro, small and medium enterprises in gaining exposure by participating in international exhibitions and trade fairs. It will help them display their potential strength and helps them go noticed to a larger audience.
SIDBI Loan for MSMEs – This scheme is headed by SIDBI, and offer term loans to MSME’s. It provides loans to enterprises for expansion, modernization and for growing the business.
The documents required to furnish to Avail business loan for Government Loan Schemes are :
Identity, Age, Address and Income proofs.
Last 6 Months Bank Statement
Business Address Proof
GST Identification Number
Past 2 years IT Return
Business Plan
Details of Income Tax paid over the last 3-5 years
Eligibility Criteria to avail Government Business Loan
Age of the applicant
Type of Business
Credit Score
Capital Invested
Loan Amount
These schemes are beneficial for entrepreneurs who are in need of funds and are not capable of providing collateral for security.
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