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.
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