Getting Business Loan for a Business is never an easy task,as a general perception amongst Entrepreneurs. Now-a-days due to growing Technology Solutions offered by Fin-Tech Startups and increased number of Schemes by Banks and Govt. we summarise the Top Approaches and Options available for Business in Getting Business Loans.
CGTMSE Loan (Unsecured)
It is Unsecured Business Loan given by Scheduled Banks under Govt. Guarantee of Credit Guarantee Fund of India. Loans are given for New Manufacturing and Trading Business with a Project Cost not more than Rs.200 Lacs. Existing SME Business can also avail loans under this scheme. Loans are generally sanctioned in the combination of Working Capital (Cash Credit Limit) and Term Loans. Interest rate depend upon internal rating done by the Bank. The final decision to sanction loans under this scheme will rest with the Bank depend upon Project profile, promoter experience and other external factors.
Mudra Loan Scheme
Mudra Loan scheme is finance extended under Mudra Scheme of Govt. with maximum loan amount upto Rs.10 Lacs. Primary Requirement for such loan is Borrower should have permanent residential address in the state. Loans can be given for starting a new business or expansion of existing business. Basic documents like KYC of Borrower, Revenue profile from business is required to be submitted. Loans are provided by major nationalized Banks like SBI, Bank of Baroda and other PSU Banks.
Stand-up India Scheme
Stand-up India Loan scheme is promoting finance either to Women Entrepreneurs or Entrepreneur from Schedule Caste. Loans upto Rs.1 Cr is granted under the scheme for New Business Setup only. Expansion of existing business are not eligible. In case of Company, Women should hold not less than 51% of shareholding in the Company. Manufacturing or Trading Setups are eligible for loans under this scheme and loans are extended by SIDBI and other nationalised banks.
PSB Loans in 59 Minutes
This is the new initiative started by Govt. of India to Lend Unsecured Business loans only to Existing Business. The process is completely online and borrower need to apply online through designated portal https://www.psbloansin59minutes.com for applying the Loan.
The mandatory information required for Loan applications are GST Login and Password to validate GST Returns filed by business. Bank Account statement for last 6 months and Income Tax Return for past 3 years with IT Login and Password to be inputted by the applicant for online validation. The AI System will validate the application and provide In-Principal Sanction with Amount eligibility to the business and borrower can select Bank of their choice from the options available.
Fin-Tech Lending Startups
With growth in Technology and to fill up the gap of huge finance demands by SMEs, Startups and SMEs who do not qualify for Bank Loans can approach Fin-Tech companies lending for the business based on pre-defined eligibility matrix and turnover criteria.
Some of the prominent names in the SME digital lending space are #Lendingkart #Capital Float #CoinTribe #Faircent #Incred and many more P-2-P and digital lending platforms. These startup platform extend unsecured loans to borrower based on their Online E-Commerce history, Social presence, Banking parameters and Card Swaps for Retail verticle. SInce these are unsecured loans, the Rate of interest is generally higher than traditional banks, however they are quick to sanction and disburse the loans for the eligible cases.
For any assistance on availing Business Loans at highly affordable rates, feel free to reach us at firstname.lastname@example.org / Whatsapp 9324242233