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How to get free startup loan from government

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With the passing years getting a loan has become all the more difficult. Banks are becoming a private sector and they are not willing to give off loans without any collateral. How will the small and medium enterprises (SMEs) survive this? How will an entrepreneur obtain the desired loan in such a situation?

How to get free startup loans from the government?

Well, it is not a situation to panic, because the Government of India is there to hold your hand in troubled times learn How to get free startup loan from the government. The government has come up with various schemes for SMEs and entrepreneurs such that they get easy access to loans, and let their dreams fly!

Best startup loan from government

Credit Guarantee Scheme

The Government started the CGS scheme in association with the Small Industries Development Bank of India (SIDBI). They provide exceptional collateral-free loans up to a sum of Rs. 1 crore to any small or medium scale businesses. The only criterion is that the business has to be not more than 5 years old and cannot have a maximum turnover of greater than Rs. 25 crore.

Credit Guarantee Scheme

How To Get A Business Loan With Bad Credit Score?

The loans are available at a very reasonable rate of interest. You must note that this scheme provides loans only in the form of term loans or working capital loans. The loan does not apply to set up educational institutions, agriculture, and the likes.

Micro Units Development and Refinement Agency (MUDRA)

The Government of India has developed MUDRA to finance small scale enterprises depending upon the stage of business and also the requirements in funding that they require. There are 3 different kinds of collateral-free loan that you get from Mundra-

Shishu: This scheme provides a loan of Rs. 50000 or lesser to any needy SME.

Kishor: The loan amount can range fromRs.50000 up to Rs. 5 lakhs.

How To Get A Business Loan?

Tarun: Tarun loans range between Rs. 5 lakhs to Rs. 10 lakhs.

*All the schemes have a 1% per month interest rate and a 5-year tenure.

Stand Up India Scheme for startup

Get free startup loan from government Stand up with India Scheme

The Stand Up India Scheme helps the SC/ST community and also empowers the women. Banks have a direction to provide such a loan to at least one SC/ST person or one woman per bank. This loan is sure to help the entrepreneurs with an amount anywhere between Rs. 10 lakhs and Rs. 1 crore. The loan amount is obtainable to you without any collateral but you have to pay it back within the tenure of 7 years. Get free startup loan from the government under stand up India scheme.

Bank Credit Facilitation Scheme

The National Small Industries Corporation (NSIC) stared the Bank Credit Facilitation Scheme in accompaniment with the Government of India. This scheme is valid for all small and medium scale enterprises, registered to India. Non-Indian MSMEs are not at all eligible to opt for this loan scheme by the government. The MSMEs can access this loan without any cost to themselves, i.e., they do not have to keep any collateral. The general tenure of this scheme is 5 to 7 years, but it can go up to 11 years in exceptional situations. I hope you have all idea about How to get a free startup loan from the government now!

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How To Get A Business Loan With Bad Credit Score?