Government Business loan for 2022 new businesses and startups in India. The government of India is running various schemes for financing new startups and businesses in India. Instant business loan facilities are also provided by some institutions. Here we will discuss government loan schemes for businesses in the country.
Government Business Loan
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Small businesses play an important role in boosting the countries growth. MSMEs play a major role in employment generation, GDP growth, improving the lifestyle of the citizens. To help these small companies the government provides them various financial assistance in the form of loans. Government loan schemes play a very vital role in MSME development.
More than 11 crore jobs in the country are created by the MSME sector. Small Industries contribute to visible GDP in the country. If you are having a question about how to get a loan to start a business from the government then in this article you will get to know about the top business loan schemes by the government in 2022.
| Name | Government Loan Scheme |
| Started by | Government of India |
| Type | Business Loan |
| For | New Businesses and Startups in India |
Benefits of Business loans by Government
The benefits of business loans by the government are
- Low-Interest rate.
- The low financial burden of repayment.
- A subsidy is provided as per eligibility.
- Finance for new business.
- Old businesses can take loans for expansion.
- Hassle free sanction.
- Collateral-free loans are also given.
- loans up to 5 crores can also be taken.
Types of Business loans provided by the Government
- CLCSS
- Pradhanmantri Mudra Yojana PMMY
- CGFMSE
- NSIC
- MSME loan in 59 minutes
CLCSS – Credit Linked Capital Subsidy Scheme
Under this scheme the government provide subsidy financing of 15% to MSMEs to upgrade their technology. The MSME can take subsidy benefit up to maximum of 1 crore rupees. The scheme will help small industries in Rural and Semi Urban areas.
- This scheme will provide subsidy of 15% for purchasing machinery and equipments.
- The business can upgrade to latest technology using the help
Pradhanmantri Mudra Yojana – PMMY
Pradhanmantri mudra yojana is an initiative by Modi Government to provide easy collateral free loan to business up to 50,000 to 10 lakh rupees. Mudra loan interest rate have been kept low so that business can run smoothly. Under the scheme of Pradhanmantri Mudra Yojana banks lends small and micro businesses under the various PM Modi Loan schemes.
- Sishu – Loan up to Rs 50,000 is provided under this scheme
- Kishor – Loan from Rs 50,001 to Rs 5,00,000 lakh is provided under this scheme
- Tarun – Loan from Rs 5,00,001 to Rs 10,00,000 lakh is provided under this scheme
Credit Gurantee Fund Scheme for Micro and Small Enterprises – CGFSME
Under CGFSME loan scheme government provides collateral free loan to the MSMEs in India. CGTMSE id formed by SIDBI to implement CGFSME so that loan sanction process is carried out smoothly. Under this scheme loan amount up to 20lakh is provided to MSME with added advantage to women entrepreneurs.
Businesses into Manufacturing and Service Sector can opt for this loan.
National Small Industries Corporation – NSIC
NSIC is an Indian government organization that provide marketing and Credit support to Indian industries.
MSME loan in 59 minutes
MSME or PSB loan in 59 minutes is an online portal for quick loan disbursal to Indian businesses. Under this scheme loan can be availed within 59 minutes with a very low interest rate.
- Minimun loan amount 1 lakh.
- Maximun loan amount 5 crores.
- Interest rate 5.80%
- Online application process.