Small Business Loan

Owners of Small Business Loan are the backbone of the entire business sector in the United States. With the latest ideas, innovative approaches and new methodologies to complement age-old practices, these business owners are breaking shackles like never before.

However, one of the difficult things for them is to raise a sufficient amount of money to sustain their business operations without any hindrance. Keeping this in mind, many of the top banks in India have come up with different small business loans with their own set of terms and conditions. Let us find out the list of loans that can be easily availed along with their interest rates and other necessary information.

Top Small Business Loans in India.

1. Pradhan Mantri Mudra Yojana 

Pradhan Mantri Mudra Yojana (PMMY) is one such scheme which was launched by Shri Narendra Modi on 8th April, 2015. The primary objective behind this scheme is to offer government business loans up to Rs. From 10 lakhs.

  • small production units 
  • food processor 
  • Service Sector Units 
  • artisans 
  • shopkeeper 
  • small industry 
  • vegetable/fruit seller 
  • machine operator 
  • truck operator 
  • repair shops 
  • food service units.

NBFCs, MFIs, Small Finance Banks, RRBs and Commercial Banks have taken the responsibility of providing this loan, and the interest rates vary accordingly. Three different products are available under this scheme:

2. SBI Simplified Small Business Loan.

Coming from one of the trusted banks in the country, this simplified bank loan for business makes it easy for small business owners to grow their current assets as well as the fixed assets required for the business purpose. This loan is suitable for all those engaged in manufacturing, service activities, wholesale, retail trade and even professional and self-employed. It has various noteworthy aspects.

  • Integrated Fee Rs. 7500 for processing fee, documentation fee, EM fee, commitment and dispatch fee, and inspection cost 
  • Repayment period is up to 60 months 
  • Minimum collateral security requirement is 40% 
  • Minimum Rs. 10 lakh and under Rs. You can get a loan of 25 lakhs

3. RBL unsecured small business loan 

Provided by RBL, this loan scheme is perfect for those who do not have anything as collateral security. Moreover, this unsecured business loan can also be availed by those who are engaged in almost every type of business activity; Thus, there are no significant restrictions. You should however bear in mind a few issues.

  • The loan amount is up to Rs. 10 lakh 
  • Loan repayment period is between 12 to 60 months 
  • Co-applicant is required for the application 
  • Available to Proprietorship/Proprietor/Individual Companies 
  • Applicant’s age should be anywhere between 25 to 65 years 
  • Applicant must have at least 3 years in current occupation and place of residence 
  • For loans above Rs 3 lakh, the applicant must have a track record of any previous loan.

4. Bank of Baroda Small Business Loan,

Perfectly suitable for those who are in business independently such as handicraft craftsmen, hairdressers, electricians, consultants, contractors, engineers, lawyers, medical professionals, and more. This small business loan from Bank of Baroda allows people to buy equipment, acquire or renovate an existing one, invest in operations. Capital and the equipment needed to continue the busines. Some of the additional terms and conditions posted by the bank are:

  • Maximum limit of loan is Rs. 5 lakh for professionals and businessmen 
  • The working capital should not exceed Rs. 1 Lac 
  • For eligible, professional medical practitioners who want a loan to start a business in rural or semi-urban areas, the limit is Rs. 10 lakh with working capital limit not exceeding Rs. 2 lakh
  • Interest rate is competitively linked to tenure based MCLR.

5. CGTMSE Collateral-Free Loans.

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) was set up as a financial assistance scheme for small enterprises. This, their collateral-free credit for new and existing businesses is the perfect opportunity to fund your business idea. What you can expect from this strategy.

  • Loan up to Rs. 10 lakh without bail 
  • Loans above Rs. 10 lakh and under Rs. With 1Kr collateral security.

Conclusion.

You have greater freedom to experiment if your business is supported by adequate funding. This, if you are ready to get the loan of your dreams, you can consider any of the schemes mentioned above for less investment and higher output.

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