You know how hard it is to start and even run a business in todayâ€™s competitive market. With close products and closer competition, your business needs all the competitive edge it can get. Finance is the crucial factor that can turn your well formulated business plan into a start-up or even a well established business.
Those who have the necessary finance have an easier time to gain the competitive edge but those who donâ€™t find it difficult to procure finance even after fulfilling lengthy bank formalities. In such circumstances, it becomes necessary to analyze your alternatives in the form of government funding.
The Indian government has recently formulated a scheme to provide funding aid to start-ups for a better eco-system in the country. The scheme Pradhan Mantri Mudra Yojana also known as Mudra scheme has been introduced to cater to various financial needs of businesses. The scheme sanctions different amounts of loans to different businesses according to their needs. To apply for a business loan all you need is to consider why you are seeking a business loan. Do you need a loan for a start-up? Do you want to establish your business or are you looking for a loan to grow your well- established business?
Once you have considered these, you can move on to secure funds for your business from the scheme designated by the Indian government for your business initiation and implementation phase.
For business funding for new start ups, a loan cover of Rs. 50000 is sanctioned at a low interest rate of 10 to 12% under the Shishu(Child) Category.
For start-ups looking for a way to establish themselves through government funding, a loan amount from 50000 to 5 lakhs will be given. The interest rate will range from 14 to 17% under Kishor Category.
Established businesses qualify to seek a business loan for the growth of a business under the Tarun Category. The businesses can seek loans up to 10 lakhs with an interest rate of 16%.
Seeking a business loan has become easier and you can apply to the nearest bank under the Mudra Scheme by following these easy steps:
- Find and Visit a scheme Pradhan Mantri Mudra Yojana bank closest to your location
- Along with the application, submit proof of identity, address proof and recent passport size photographs
- Fulfil the procedure after submitting business idea and bank formalities
- Receive a business loan after completion of these steps
You can procure a government approved funding for tenure as long as seven years under this scheme. The Mudra scheme is available at all branches and banks across India to make your task of getting the ideal loan to suit your business needs easier.