Since the 2015 launch of the Startup India campaign, the number of micro, small and medium enterprises (MSMEs) has increased.
This campaign is based upon an action plan that promotes bank financing for Startups. It also encourages startups which in turn will lead to more job creation, and aid in the nation’s economic development.
So if you are a startup owner and plan to get yourself a business loan in Ahmedabad then here all the things that would be required for the same.
Eligibility For Business/Startup Loan
- Business plan and how it will progress
- Startup must be established as a sole proprietorship or partnership firm, private limited company, public limited company, or limited liability partnership (LLP).
- No previous loans
- No payment defaults
- The person applying must have a credit score of 750 or higher
- The total turnover of the company should not exceed Rs. 25 crore
Different Types Of Loans
There are quite a few types of business and startup loans offered by the banks and private lenders. We have listed down some of them below.
1) Startup India
The Startup India Scheme, an initiative of the Government of India, offers instant business loans to startups for expansion and growth. Startup India also promotes wealth creation and employment generation. Startup India offers business loans at attractive interest rates. Register now
2) Standup India
Stand-Up India Scheme provides funds to individuals who fall under the SC/ST category or women entrepreneurs. The Government of India initiated the Stand-up India program to provide credit services to people mainly from the SC/ST categories. This scheme was created to assist banks in providing loans between Rs. 10 lakh to Rs. Rs. 10 lakh and Rs.
3) Psbloansin59minutes.com
The Government of India launched a portal which approves business loan applications within 59 minutes of submission. This scheme offers a minimum loan amount of Rs. The maximum loan amount is Rs. 10 lakh, while the minimum is Rs. 5 crores. The interest rate starts at 8.50% per annum
4) MUDRA loan
Mudra Yojana under Pradhan Mantri Mudra Yojana (PMMY) offers loans up to Rs. Loans up to Rs. 10 lakh are available without collateral and at very affordable interest rates. The repayment term is up to five years, and there is no processing fee. You do not need to borrow a minimum amount. Banks will have different interest rates depending on the applicant’s business profile and other requirements.
5) CGTMSE Scheme
Credit Guarantee Funds Trust for Micro and Small Enterprises is another government initiative that provides funding for MSMEs through financial institutions such as banks and NBFCs. This scheme is particularly beneficial for first-time entrepreneurs as well as startups. The loan under the CGTMSE scheme does not require collateral.
Documents Required
- Application form
- Passport-sized photos
- KYC documents for applicant and co-applicants include Passport, Aadhar Card, Voter’s I card, Driving License and PAN Card.
- Bank statement of the last 12 months
- ITR for the last 1-year
- Certificate of incorporation for business
- Business Address Proof and PAN Card