How to Get Loan from Government to Start A Business in India?
Sounds surprising to many, but you need money to make money because an idea remains an idea without the capital backing and when you have to start your own business, you need to have a good amount of liquid cash by your side to start the process, not to mention the cash required to keep your business intact and to expand it further to new avenues.
India, as per a report published by NASSCOM, is the world’s third largest start up base and Indian government is more than willing to give the required platform to the entrepreneurs and thus is working towards providing conductive environment for the ideas and the ideators to thrive in their respective businesses.
Small business or startups or industries need to have lot of financial aid and support in order to grow, flourish and establish because they don’t have only to start with the business but also need to compete with the MNCs and the big organizations in order to create a place for themselves and not everyone who wish to have their own business is privileged to have such a financial backup at their end and thus small business loans has become the need of the hour as more and more people are opting to start their own business.
Types of Business Loan
In India, there are basically broad three categories under which you can apply the loan for. Loans available under these categories are quite specific to your business needs and thus you need to be very sure of what you need and how much you need to start your business.
- Working Capital Loan: Working capital loan is basically to meet your daily expenses and all your expenses normally fall under working capital loans, especially the operational costs.
- Corporate Term Loan: If you are thinking either to start or expand an already running business, corporate term loan is the option you should go for because as term loan, you have the luxury to borrow large sum of money from the banks or other financial institutions with a longer repay period.
- Term Loan: You can avail term loan if you want to buy some fixed assets for your business. Term loans are secured with tenure of 1-10 years and have interest rate between 10% to 20%.
Government Loan for Business Startups in India
Indian government has made various options available to the dreamers who want to start their business. Both, the central and the state government are working towards providing various schemes in order to cater to the financial requirements of small businesses segments across the country.
Few of them are listed below: