People, startups, small to medium businesses in manufacturing, retailing, trading, partnership agencies, sole proprietorships, public and private enterprises etc., are eligible for government loans. It is necessary to be at least 21 years old for a business loan in Bihar.
Existing businesses must have been in operation for at least one year to apply for a loan. An applicant or enterprise’s eligibility criteria for a business loan in Bihar is are influenced by the following factors:
- Applicants’ ages
- Financial stability and repayment history of the applicant
- The type of business and its nature
- An old business model
- A credit score of an applicant or rating of a company
- Amount of loan desired
- Profit and loss statement, turnover, and ITR
- An estimate of the amount of capital invested and the goods/raw materials/equipment/machinery that will be utilized
- Past defaults on loans, debts, or any other obligations
India provides a variety of online business loan schemes to budding entrepreneurs to help them develop their businesses. To get a new business started, here are the features and benefits of government business loans:
PSB and MSME Loans
The Prime Minister launched a dedicated digital platform titled ‘PSB loans in 59 minutes on November 5th, 2018, to enable startup businesses and SMEs to apply for loans of up to Rs. 5 crores under 59 minutes of approval. The Indian Government established the Startup, Micro, Small, and Medium Enterprise (MSMEs) online business loan Scheme to provide financial assistance to SMEs in India.
The Stand Up India initiative
Launched under the SIDBI operatives, Stand up India was established to provide financial support to entrepreneurs and small businesses in the SC/ST category. SC/ST borrowers and women borrowers per bank branch must qualify for at least Rs for loans under this scheme. 10 lakh to Rs. 1 crore. Trade, manufacturing, and services-based organizations are eligible to apply. A minimum of 51% of the shareholding stake in non-individual firms should held by an SC/ST or woman entrepreneur.
The PMMY Mudra loan
The Government established this scheme to provide small and micro businesses, not corporations or farms. Small and corporate banks can give Mudra loans to other banks in the regional rural, commercial and public or private sectors.
These lending institutions or MUDRA’s official website are available to applicants. Small businesses or startups are the major users of MUDRA loans.
NSIC (National Small Industries Corporation) Subsidy
NSICS offers financial support to small businesses in marketing assistance and raw materials assistance. The Small-Scale Industries (SSI) shall have access to the tenders through the marketing assistance program without paying anything. SBEs (Small Scale Enterprises) not require to put down a security deposit to obtain financing. In the case of SSI units, whose project cost does not exceed Rs. 25 lakhs, the scheme provides land and building financing for the project.
SMILE or SIDBI’s ‘Make In India’ soft loans funds
The SMILE project launch in 2015 is the other initiative run by SIDBI. The purpose of this scheme is to provide soft loans and enable new SMEs and existing ones to grow by meeting the required debt-equity ratios.
Through the Timely Working Capital Assistance program from SMILE interest rate of up to 8.25% is offer. As of February 29th, 2020, all lender accounts, including those under Credit Delivery Arrangement, have a combined outstanding credit facility of up to *25 crores. Maximum exposure of Rs. 5 crores with SIDBI of 20% of your total outstanding loans.
Credit Guarantee Schemes
To strengthen and facilitate credit delivery to the MSME sector, the Government launched the CGTMSE scheme or Credit guarantee Fund trust for micro and small enterprises. Public, private, and foreign banks are all included in this scheme and the Regional Rural Banks and SBI.
The scheme is open to all new and old MSMEs engaged in manufacturing and service activities. It does not apply to retail trade, education, agriculture, Self-Help Groups (SHGs), or training institutions.
Unsecured business loans
In case you not meet the required eligibility criteria of the above mentioned schemes. You can still avail a high-value business loan from leading lenders and NBFCs. These high-value business loans come with no collateral and minimal documents. One of the leading NBFCs, Bajaj Finserv offers unsecured business loans with instant approval and minimal documents.
This NBFC provides pre-approved offers to expedite the loan processing time. You can simply check your pre-approved offer by sharing your basic details.