7 Ways MSMEs Can Apply for A Business Loan


Small and medium-scale businesses develop the economy of the country. It offers employment and huge growth in the revenue generated. In order to encourage more small and medium-scale businesses in the country, various kinds of loans are available. Small and medium-scale businesses are able to apply for various kinds of funds that can be used for their businesses.

Business loans

Small and medium-scale businesses always need a smooth flow of funds in the initial and throughout the lifecycle of the business. Insufficient funds and capital are the only obstacles faced by small-scale businesses in the country. The presence of small business loans from banks and non-banking financial companies helped small and medium-scale businesses. Business loans are affordable and completely flexible in nature. It can be used for any kind of expense related to business without any restriction on end usage. There is no need for collateral or security.

Credit Guarantee Fund Government Business Loan Scheme (CGTMSE)

Under this credit guarantee scheme, small and medium-scale businesses can get a business loan with a credit line of up to Rs 1,00,00,000. There is no need for any collateral or security to be pledged at the time of taking a loan. It is one of the best financing options for entrepreneurs who need a smooth flow of money for their business expansion or working capital needs. Entrepreneurs with technical and business knowledge and experience are eligible for this program. The rate of interest ranges between 11% and 16%.

Personal loans

Personal loans are very popular for small and medium-scale businesses. It is a completely flexible form of loan that can be taken by business owners. There is no end usage restriction or limitation, which makes it an affordable financing option for any kind of business needs. Since it is an unsecured loan, there is no need for collateral or security. You can take a personal loan from your bank or from non-banking financial companies. Apply for free credit score check.

A gold loan

Gold loans are very popular among business owners. It is a secured form of loan where the gold is kept as security or collateral with the bank or non-banking financial companies. The rate of interest is very low and there are no charges. Approval is given on the very same day, within a few hours only. The fund is completely flexible and can be used for any kind of business-related expense.

Unsecured loans from non-banking financial companies

Non-banking financial companies have a high approval rate when it comes to unsecured loans for businesses. If you need a business loan without any security, you can get it from non-banking financial companies. The rate of interest is affordable if the upper rate is very high.

Stand-Up India

The government launched the Stand-up India scheme to grant loans to enterprises managed by Scheduled Castes, Scheduled Tribes, and women. This scheme provides loans ranging from Rs. 10 lakh to Rs. 1 crore. It is a good initiative to help more entrepreneurs on their journeys.  Must Read : Unsecured business loan: Is it the best option for a small business?

National Small Industries Corporation Subsidy

The government provides a substantial amount of loans to small and medium-sized business enterprises through this corporation subsidy. The main responsibility is helping small and medium-scale businesses provide financial, marketing, technological, and other services across the country. The government's new scheme provides massive corporation subsidies.

Wrapping up

Small business loans are very popular. By meeting the eligibility criteria, you can always take a business loan to manage working capital as well as other expenses in your business.

 

Post a Comment

0 Comments