How To Get Small Business Loan From Government?

How To Get Loan From Government For Startup?

Are you hoping to start your dream business?
When a business is newly started, it usually belongs to small or medium-sized businesses.
Do you know that the small and medium-sized business contributes more than 38% to the Indian GDP?
Small businesses are indeed the backbone of our economy.
But starting your own business is not an easy task.
As a new entrepreneur, there are tonnes of things that you need to take care of, right from procuring the materials to making that super crucial first sale.
You need to manage all these by yourself.
Does it sound like a daunting task?
You have to arrange for the funds for business operations.
The government has launched specific loan schemes for small businesses.
We will walk you through the process so that you can fuel your dream startup.

How To Get A Loan To Start A Business From The Government?

MUDRA Loans

MUDRA, an organisation of the government, is specifically directed to support micro-businesses.
The government created it, keeping in mind the needs of thousands of small business owners in the country who find it difficult to take loans due to the high rates of interest.
MUDRA loans are refinanced business loans that are available through all public sectors as well as private banks.
You can get a loan of various amounts depending on your requirements.
These loans start from Rs 50000.
You can even get a loan of up to Rs 1000000 if you need to make a significant investment in your business.

MSME Business Loans in 59 Minutes

Do you need a loan urgently for your business? MSME is probably your best option.
The approval of your loan takes only 59 minutes.
However, it might take around 10 to 12 days to get the money.
It is one of the most popular loan schemes for small businesses today.
You can get a loan of up to Rs 1 crore depending on the type of your business and requirements.
These loans are available only at public sector banks.
The interest rate depends on the kind of business.
In 2018, the government launched this scheme to provide much-needed support and encouragement to small businesses.
There are a few formalities that you need to complete for the loan to get sanctioned. GST and income tax verification are a must.
Along with it, you also need to complete your KYC. Complete these tasks and get your loan in no time.
You can then invest it in your dream business to take it to great heights.

NSIC Subsidy

Are you worried about promoting your startup so that it gets the much-needed exposure? Don't worry.
You just need to apply for the NSIC subsidy.
It will make sure that your business reaches the maximum number of people so that you can connect with hundreds of potential customers who might become your regular clients.
The NSIC mainly focuses on small businesses that deal with manufacturing goods.
If your startup is more about providing services, you can opt from the other types of loans that are available.
"The National Small Industries Corporation Subsidy is the perfect credit scheme for all small and medium enterprises."
You can take a loan for purchasing your raw materials in bulk.
Small enterprises that deal with manufacturing or selling goods can take advantage of this scheme.
It will let you stock all your materials at once.
The NSIC subsidy also covers all the marketing needs of small firms.

Eligibility for Getting Government Loans for your Small Business

The small business loans of the government are available for small and medium business owners, sole proprietors, and partnership firms.
However, you are required to fulfil some criteria.
The officials will verify specific credentials before granting you a loan.
Whenever you go to apply for a loan, they will ascertain some vital information about you and your business.
It includes the following-

The type of business that you run
The credit score of your business
Your annual turnover.
Your age
The amount of loan you wish to take

Marketing Your Startup

Setting up your dream business is not enough.
You just cannot start your business and expect customers to drop in.
You need to reach out to your potential customers with your products and services so that they get to know you.
Connecting with your potential customers and convincing them to become loyal clients is the secret to success.
This requires excellent marketing and advertising strategy.
This requires a tremendous amount of capital.
There are government schemes for small enterprises who want to market their strategies to support this.
Moreover, you can also do without a loan.
It is the era of digital marketing. If you wish to make your startup successful, you cannot simply do without digital marketing.
In today's times, people spend most of their time glued to the screens of their smartphones.
So the digital world is the best place to connect with your potential customers.
Make sure that you maintain the presence of your business on all the major social media platforms.
Highlight the best features of your products and services on these platforms.
It not only helps you to rope in new customers but also maintains a connection with your existing customers by interacting with them regularly.
Do not choose any one social media platform. Be present on all the sites like Facebook, Instagram, Twitter, and Linkedin.
After all, you never know where your customers are. So make the fullest use of social media for promoting your small business.
It is not only effective but also takes care of your pocket pinch.
Do you still have a lot of questions in mind related to taking a government loan for your startup?

In Conclusion

Stop worrying and start planning to launch your startup and take it to great heights.
Take full advantage of the various government loans for small businesses.
OkCredit has helped thousands of small entrepreneurs to start from scratch and reach great heights with their business.
Why are you waiting? Put your thoughts and passion into practice and watch your business grow to reach new heights.

You might also be interested in reading-

Are small business loans secured or unsecured?

What is a business loan? How to apply for a business loan?

Is A Small Business Loan Variable or Fixed Rate?

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