Government Loan Schemes for Small Scale Businesses

An online business loan provided under a government scheme or program is always favorable due to its lower interest rates. Besides, government loan schemes help you suffice your day-to-day business funding requirements. With the help of various government loan schemes which can easily be availed online, you can take your business to the next level. Both state and central government have framed various policies and schemes to cater to the financial requirement of small businesses across the country. Many public sector banks like State Bank of India (SBI), Andhra Bank and Bank of Baroda offer various financial schemes to small business owners.

These schemes help the entrepreneurs obtain financial products and services according to their business requirements.

Some of the worth-mentioning schemes offered by these public sector banks are:

Working Capital Finance

This type of capital is provided for meeting the operating expenses of a business. It is also provided to small enterprises in purchasing their business assets. This type of financing can be obtained through direct funding or letter of credit.

Corporate Term Loans

Corporate term loans are useful for starting a new venture as well as for expanding an existing business. These loans are generally taken for running as well as for expanding businesses.

Term Finance

Term loans are provided for acquiring buying fixed assets like land, plant, building, machinery etc. These loans are available at floating interesting rates and come with specified repayment schedules. The maturity period of a term loan is usually from 1 to 10 years.

In addition to public sector banks, there are several government financial institutions that have played a significant role in providing financial assistance to small businesses.

Some of the prominent names engaged in helping small businesses with funding facilities are as follows:

Small Industries Development Bank of India (SIDBI)

Small Industries Development Bank of India (SIDBI) started its small business funding programs way back in 1990. Established by an act of Parliament, SIDBI is now one of the most illustrious names among the government financial institutions. This loan available online at Biz2Credit India has played an active role in the promotion and development of small business industry. Various schemes provided by SIDBI are enlisted below:

• Direct Assistance Scheme
• Indirect Assistance Scheme
• Promotional and Development Activities
• National Equity Fund, Scheme
• Technology Development and Modernization Fund Scheme
• Single Window Scheme
• Mahila Udyam Nidhi (MUN)
• Scheme and Equipment Finance Scheme

National Small Industries Corporation Limited (NSIC)

National Small Industries Corporation Limited (NSIC) came into effect in the year 1999 with an objective of encouraging the small scale industries in the country. The prime feature of NSIC is to import machines on hire-purchase terms. It lay emphasis on supplying and distributing both indigenous and imported raw material as well as on exporting the products of small business units. Besides, it also creates awareness of advancements occurring in the field of small scale industries.

National Bank for Agriculture and Rural Development (NABARD)

National Bank for Agriculture and Rural Development or NABARD came into existence mainly for promoting agriculture-based rural business enterprises. NABARD mostly offers financial assistance to small scale industries viz; cottage and village industry.

World Association for Small and Medium Enterprises (WASME)

World Association for Small and Medium Enterprises or WASME is the only non-governmental organization for SMEs in India. This organization aims at the development of small and medium businesses in the country. Moreover, for the growth of rural enterprises, it also provides some subsidized schemes.

Both government and public sector banks have played significant roles in uplifting the small scale and rural business industries in India. Biz2Credit can help you avail the best business loan scheme online from a public sector bank or a government financial institution.