Government Business loans are special types of government-initiated loans that are provided to MSMEs (Micro, Small, & Medium Enterprises) for supporting their businesses. There are several varieties of the given scheme. Given the huge variety, modern business owners can make the decision of choosing the right one as per their requirement.
In this post, we will help you unravel the meaning and types of government business loans to start business in detail.
The government business Loans for Women to start business or even general business loans are designed to help the entrepreneurs in financing the respective business. The given schemes tend to be specific towards the specific requirements of the enterprise. All such schemes can be categorized on the following types of business-specific loans:
It is a type of Capital that is required by businesses for conducting as well as managing the day-to-day activities. It is known to be categorized into two types –secured & unsecured. The given activities happen to serve as relevant business expenses –including debt management, utility bills, inventory management, salaries of the workers, operating costs, and others. To be specific, a working capital loan is all known to entail all types of operating costs & other loan schemes catering to the specific needs of business organizations.
There are many types of government loan schemes that fall under the category of corporate term loans. Corporate term loans are mostly availed for the purpose of business expansion. Therefore, it is regarded as one of the important loan categories that startups & MSMEs should consider. The amount of money that is involved in the given types of corporate term loans tends to be quite large. Moreover, these are also allowed to be repaid over a longer period of time. The given type of government business loan features an interest rate that can be negotiated.
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As per its name, term loan serves to be a monetary instrument that can be repaid within the fixed tenure by the given lender. Term loans are known to allow business enterprises to buy fixed assets, property, plant & machinery, and also for paying salaries of the existing staff or hiring new staff. It can be referred to as a type of funding that is provided by the NBFCs and banks to business owners, individual entrepreneurs, large enterprises, or MSMEs for allowing them to meet the specific business requirements.
There are several types of government business loan for new business schemes that are provided by the government to the all-new entrepreneurs or business enterprises. Some of these are:
The given scheme has been set up by the Government for providing financial aid to non-farm micro or small enterprises, non-corporate organizations, and others. The Mudra Loan scheme can be made available by the respective public as well as private sector banks. The applicants or enterprises that might be interested can approach the respective lending institutions or can even look forward to applying online through MUDRA’s official website.
On 5th November 2018, the Prime Minister of India went ahead with unveiling a centralized platform –referred to as PSBloansin59minutes.com. The given digital platform aims at enabling loans of up to Rs. 5 Crores within a span of 59 minutes. The government had launched the given scheme for providing financial assistance to MSMEs (Micro, Small, & Medium Enterprises) across the country.
Some of the unique features of the govt business loan scheme are:
You should implement the following steps to get this loan:
A: The minimum loan amount of 10,000 INR per borrower
A: There are several types of government business loans –including, Credit Guarantee Fund Scheme, MSME Loan Under 59 Minutes, and so more.
A: You can get it for visiting the official website of the provider and applying for the loan through the online application form.