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Are you an entrepreneur looking for small business loans to start or boost your business? Do you face a dilemma while deciding on the various business loan schemes available in the market?
Indeed, planning for a business loan is a big decision. Following the below mentioned do’s and don’ts should help you:
Loans are usually secured or unsecured. If your lender knows you well and is convinced of your business productivity, then you might be able to get unsecured small business loans for your business. The three major loan facilities that can be availed are:
Since a lot of women are entering entrepreneurship, the government of India has come up with below mentioned schemes for small business loans to support and ease out the process for them:
Stree Shakti Package
Run by SBI bank, this scheme is offered to women having 50% share in the ownership of a firm or business. The key features are:
Cent Kalyani Scheme
Run by the Central Bank of India, this scheme is for women involved in cottage, micro, small, medium, retail or agriculture industry or for self-employed women.
Dena Shakti Scheme
Run by Dena bank for the women entrepreneurs in the fields of agriculture, manufacturing, micro-credit, retail stores, or small enterprises, it offers a maximum loan of Rs 20 lakhs with discounted interest rate by 0.25%.
Bhartiya Mahila Bank Business Loan
This scheme is for budding women entrepreneurs planning to start new ventures in retail, property, MICRO or SME industries. The key features are:
MUDRA Yojana Scheme
Launched for individual women planning to start beauty parlors, tailoring units, tuition centres etc, this loan doesn’t require any collateral security and can be availed in 3 schemes:
A Mudra card is provided once the loan is sanctioned having funds limited to 10% of the loan amount.
Apart from these schemes, we also have Mahila Udhyam Nidhi, Oriental Mahila Vikas, or Annapurna Schemes offered by the Government of India. Further, most major private sector banks or financial institutions like Bajaj Finserv, Fullerton etc. also offer business loan schemes.
I hope you explore all these schemes for small business loans and make your decision wisely.
Image via Unsplash
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