Nowadays, many new ideas are blooming for different business niches in India. But they come up to an end when funds start getting scarce. In this era, a number of enthusiastic young people attempt to inaugurate some new business or venture to shape their dreams into reality. Sadly, due to limited funds and lack of financial support in trades, many youngsters lose new opportunities.
If that’s the case with you as well, in that situation, you should search for reliable sources that yield startup business loan without collateral in India. However, several financing institutions ask for 3 years business vintage period, minimum, except for some secure Government schemes. These government schemes allow young business owners to get a commercial loan for their seeding business.
List of Best Business Loan without Collateral in India for Startups:
You have the option to choose between private financial lending foundations and government loan schemes. You can find several other financing companies demanding for the business vintage period, and, moreover, they don’t even lend to startups. Therefore, we have listed some beneficial government loan schemes that can help your startup obtain enough business loans.
MUDRA Loan Scheme
MUDRA Loan Scheme stands for Micro Units Development and Refinance Agency. The agency help business enthusiasts to get loan approval to the non-cooperative small business sector. If your business loan gets granted under this particular scheme, it won’t require any collateral security. However, you can eventually apply for the following loans under this scheme:
- Tarun Scheme – Tarun Scheme loan ranges between ₹5 Lakhs to ₹10 Lakhs.
- Kishore Scheme – Kishore Scheme loan has a range of loans between ₹50,000/- to ₹5 Lacs.
- Shishu Scheme – Lastly, the Shishu Scheme, under which one can get a loan amount of ₹50,000/- at a chargeable interest rate of 1% each month. You’ll get a 5years of tenure period on this loan.
Coir Udyami Yojna
Launched by the Coir Board, Coir Udyami Yojna only permits funding to project-based businesses with a cost of up to ₹10 Lakhs. The board authority approves a loan amount of 25% of the cost of the project.
On one side, your working fund will be financed by the cash credit facility. And, on the other side, you’ll experience a negotiable interest rate with 7 years of the tenure period, maximum.
The Credit Guarantee Scheme
Indian government launched this scheme for small and micro-enterprises. This scheme helps small and developing enterprises obtain funding to expanse their business at a reasonable interest rate. The government will lend the loan depending on your expediency and eligibility. You can get a maximum of ₹1 Crore amount of loan under this scheme.
National Bank of Agriculture and Rural Development, in short, NABARD, also grants business loans for startups. This institution primarily approves loan to small enterprises in rural areas. Therefore, newly startup businesses or young business enthusiasts can apply for a commercial loan from NABARD with ease.
Every business requires a sufficient amount of funding to grow and prosper. In that situation, new entrepreneurs and existing business personnel need some magical plans that can support their business take off. Hence, the Indian government comes with a business loan without collateral in India that business owners will find helpful in every aspect.
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