Beyond Banks: Exploring Alternative Options for Business Loan in Jaunpur
Getting a business loan can help you take the ‘leap’. It can help you expand business operations, cater to the machinery needs, upgrade technology, bring in more workforce and whatnot. However, many times, banks may not approve your business loan application. So, what should be done? Explore alternative options for a business loan in Jaunpur. In this blogpost, Bhumi Finance brings to you a list of such options. Check them out.
- Bank Credit Facilitation Scheme
Headed by the National Small Industries Corporation (NSIC), this scheme is targeted at meeting the credit needs of the MSME units. The NSIC has partnered with various banks to provide a business loan in Gorakhpur to the MSME units. The repayment tenure of the scheme ranges between 5 years and 7 years but in special cases, it can be extended up to 11 years.
- Credit Guarantee Scheme (CGS)
A used car loan in Ballia can be availed by both new and existing MSMEs that are involved in service or manufacturing activities but excludes educational institutions, agriculture, retail trade, Self Help Groups (SHGs), etc. Up to Rs.2 crore can be borrowed under this scheme headed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Pradhan Mantri Mudra Yojana (PMMY)
Launched in 2015, this scheme is headed by the Micro Units Development and Refinance Agency (MUDRA) and it aims at offering loans to all kinds of manufacturing, trading, and service sector activities. The scheme offers a business loan in Gorakhpur under three categories - Shishu, Kishor, and Tarun in amounts ranging between Rs.50,000 and Rs.10 lakh. The Mudra loan can be availed by artisans, shopkeepers, vegetable vendors, machine operators, repair shops, etc.
- Small Industries Development Bank of India (SIDBI)
The Small Industries Development Bank of India (SIDBI) has also begun lending to startups and MSMEs directly rather than channelising it through banks. The interest rates on a business loan in Jaunpur offered by SIBI is lower than the one offered by banks by almost 300 basis points.
- Standup India
Launched in April 2016 and headed by SIDBI, this scheme extends loans to enterprises in manufacturing, trading, or services. Under this scheme, the best business loan in Varanasi is offered between the range of Rs.10 lakh and Rs.1 crore. The repayment of loans taken under this scheme can be done in seven years while the maximum moratorium period allowed is 18 months.
- Sustainable Finance Scheme
This scheme is also headed by the SIDBI and aims at offering loans to industries that deal in green energy, renewable energy, technology hardware, and non-renewable energy. The government started this scheme with an intent to offer support to the entire value chain of cleaner production/energy efficiency and sustainable development projects.
Other Business Loans for Startups by the Government of India
There are more than 39,000 startups in India at present who have access to many private equity and debt funding options. However, it is a challenge to get funding when the business is just an idea or is in the early stage. Also, the Micro, Small, and Medium Enterprises (MSME) sector in India only has limited access to formal credit which is why the Government of India decided to roll out startup business and loan schemes for MSMEs and startups.
In order to get the best business loan in Varanasi, reach out to us! Best of all, we are also considered as the best car loan service provider from Varanasi. Contact us now for your next car loan.