Funding is like fuel for any startup. Business loan for startups is one of the ways to get an amount of money for expanding an existing business or to start a new project. In this article, we will learn about various schemes where entrepreneurs can get loans unto Rs. 50 lakh.
Business Loan for Startup up to Rs. 50 Lakhs
There is a great opportunity for startups to accelerate their business using loans up to Rs. 50 lakh. Banks offer start-ups loans based on your startup profile, bank record of owner, loan tenure, required loan amount, financial assessment, etc. These start-up loans can be in the range of Rs. 50,000 to Rs. 50 lakh.
Loan Amount: Rs.50,000 to Rs.50 lakh
Interest Rate: 11.50% to 20%
Collateral: Not Required
Processing Fee: As per the discretion of the lender
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Benefits of startup business loans for startups:
– Flexible loan tenure
– simple application process
– low processing fee
– affordable EMI plans
– loans in the range of Rs. 50,000 to Rs. 20 lakh
Documents required to get Business loans for Startup up to Rs. 50 Lakhs
– Identity proof
Any of the following: Aadhaar Card/ Passport/ Voter’s ID Card/ PAN Card/ Driving License – Previous bank record up to 6 months
– Balance sheet
Any of the following: Aadhaar Card/ PAN Card/ Driving License/ Voter’s ID Card/ Passport – Proof of business continuation
*other proof required as per the nature of your business
Also Read, How to Get Dhani App Loan?
Who can get MSME loans?
MSME means Micro, Small, and Medium Enterprise. Small Business owners, self-employed professionals, micro, small, and medium enterprise owners can get loans under MSME schemes.
MSME business loans for startups in 59 Minutes
In this scheme, banks approved loans for a startup in just 59 minutes after verifying documents. With simple procedure and application, Applicant can get approval for startup loan from 10 lac to 5 crores within 59 minutes.
– GST identification number – income tax return details
– bank statements
– director/owner details
– KYC details of the owner
This is a good scheme to get quick loan approval for any small and medium-size startup. After approving loans, it could take up to 8 to 9 days to disperse the loans.
Interest rate: It depends on the amount of loan, documents, and tenure of the loan (average 8% to 10%)
Loan for starting a new business without security
A business loan without security is the loan business owner gets without any guarantee, you don’t need to pledge any property or assets. The most important thing for this kind of loan is CBIL Score. You can get a loan without any security if your CIBIL score is above 680 (it depend on banks and nature of business). Once you fulfill the required criteria your application moves forward for further process.
Rate of Interest: more than 15% Processing fees: up to 2%
This is how you can fund your business without pledging personal assets.
Mudra Loan for Startup business
under the Mudra – Micro Units Development & Refinance Agency Ltd. yojana small business and start up can get funds with low-cost credit. Owners of small businesses such as in the manufacturing, processing, trading, or service sector can get loans up to Rs. 10 lakh. Applicants do not need to submit any security to apply for the Mudra Loan.
Documents Required for Pradhan Mantri Mudra Yojana Income Proof
Bank Statement (last 6 months)
Interest Rate: begins at 7.30% Tenure: up to 7 years
Processing fees and other charges are mostly 0 or can be up to 0.50%. The minimum age required to apply for a Mudra loan is 18 years and the maximum age is 65 years.
Startup business loan for women’s in India by government
The government of India has many schemes with the women entrepreneur in the focus. Today women are actively serving society in every field, including business and finance. The government of India is also encouraging women of India to start a business via business loans. Women can get funds to extend or start her project through various loans yojanas of the government.
Startup Business Loans for women entrepreneurs:
Mudra Loan for Women
Cent Kalyani Scheme
Stree Shakti Yojana
Orient Mahila Vikas Yojana Scheme Bhartiya Mahila Bank Business Loan Udyogini Scheme
Dena Shakti Scheme
Mahila Udyam Nidhi Yojana
The terms and conditions for women’s loans depend on the amount of loan under the particular yojana. For example, Under the Mudra Yojana for women, she can get a loan of a minimum amount of Rs. 50,000 to a maximum of Rs. 50 lakhs.
Interest rates: from 7.30% to as per banks criteria Processing fees: from Rs. 0 to as per nature of the loan Loan term: up to 10 years or more
Women entrepreneurs over 18 years of age can get these loans from public and private banks. The government of India keeps announcing schemes for women entrepreneurs, so loans for women are not only limited as we mentioned above but there could be more options available as you are reading this article.
There are great opportunities available to get Business Loan for Startup up and small/medium-size enterprises up to Rs. 50 Lakhs. Banks and government schemes are a good way to strengthen your startup. You can get loans as per your profile and type of business. In this article, we have described various types of loans and their requirements. We hope that it will help you to find the perfect loan for your startup.