The ecosystem for startups in India is quite promising! Every now and then, a scheme is introduced to help ambitious entrepreneurs. According to a recent study, India has the 3rd highest number of startups around the planet. This means, the country’s startup culture is promising, and successful. “Money” is an important factor in building a startup. Every entrepreneur needs the right source of funding. Of course, you have many venture capitalists and Angel investors to rely on. However, it is very difficult to bag a good amount of money from these sources. In such cases, you will need a reliable loan. If you take a quick walkthrough India’s mortgage scene, you will be fascinated. There are so many loans for budding entrepreneurs, and these loans don’t need collateral.
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The MUDRA Scheme
The talk about loans in India always begins with MUDRA. This is a financing agency that helps startups throughout the country. From small businesses to micro-units, MUDRA has a policy for everyone. From the beginning, this scheme was designed to fund businesses that can promise growth. The entire loan process is broken into stages. The very first stage is also known as Shishu. Here, a loan amount of 50,000 INR is given to the entrepreneur. The loan is lending at an interest rate of 1%. The second stage is well-known as “Kishor”. Now, the amount ranges between 1,00,000 to 5,00,000 INR. The loan needs to be repaid within 5 years.
Credit schemes are famous in different parts of the world. Many a time, startup companies focus on credit guarantee schemes. These loans don’t require any collateral. If you belong to the category of “1st generate entrepreneurs”, this scheme will be extremely useful. Unlike conventional loans, the credit scheme offers money at very low rates of interest. And, the amount sanctioned depends on your eligibility criteria.
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Bank Credit Facilitation Methods
Another interesting scheme for small and medium businesses would be the Bank Credit Facilitation Scheme. The tenure for repaying this scheme depends on your eligibility and your company. On an average, you can repay the loan between 5 to 11 years.
Stand Up Scheme
This scheme is offered by the Government of India. The amount sanctioned ranges between 10 lakhs and 1 crore Indian Rupees. Every bank has the right to approve this loan to at least a single female borrower. Of course, the loan has to be repaid within 7 years.