Business News: The rising inflation every day has troubled the common man a lot. In such a situation, everyone is preparing to start their own business. It has been seen that in the last few years, the number of entrepreneurs in India has increased rapidly. People are now showing interest in doing their own business.

Most people resort to loans to start a business. In such a situation, the Government of India has taken effective steps to financially help startups and existing companies to continue their operations. Let us know today about those 5 government schemes with the help of which you can easily take your business or startup forward.

1) Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Prime Minister, under which loans up to Rs 10 lakh are given to non-corporate, non-agricultural small/micro enterprises. These loans are given by commercial banks, RBI, Small Finance Banks, MFIs, and NBFCs, or one can apply online through this portal www.udyamimitra.in. This scheme is divided into three categories, under which:

- Shishu: Loan up to Rs 50,000/-

- Kishor: Loan from Rs 50,001 to Rs 5,00,000

- Tarun: Loan from Rs 5,00,001 to Rs. 10,00,000/- is given.

Under this scheme, there is zero processing fee for Shishu and Kishor. Whereas for Tarun there is a 0.50% processing fee.

2) Stand Up India Scheme

To motivate women and SC/ST entrepreneurs at the grassroots level, loans ranging from ₹10 lakh to ₹1 crore are given without any collateral under the Stand Up India Loan Scheme. The loan is given according to a 7-year repayment schedule, whose moratorium period can be 18 months.

Under the Stand-Up India Scheme, income tax exemption is available for the first 3 years while starting a business (business loan). After this, an interest rate of 3 percent along with the base rate is charged on it, which cannot be more than the tenure premium.

3) National Small Industries Corporation Scheme

NSIC provides services under marketing, technology, finance and other support services (National Small Industries Corporation). Its objective is to promote the Micro, Small and Medium Enterprises (MSMEs) sector. Two types of loans are given under this scheme:

- Marketing Assistance Scheme: The amount received under this scheme can be used to increase the market value of your offerings. This can help a lot in promoting the business, marketing and increasing market access.

- Credit Assistance Scheme: Under this scheme, financial assistance can be obtained for the purchase of raw materials, finance, marketing etc.

4) Credit Guarantee Fund Scheme

To promote startup culture, startup companies will get a maximum loan of Rs 5 crore without any guarantee under the government's Credit Guarantee Scheme. For this scheme, the guarantee fee has been reduced from 2% per annum to 0.37% on the sanctioned amount.

5) MSME Loan Scheme

The government has launched the MSME Loan Scheme to help meet the working capital needs. Under this scheme, any new or existing enterprise can get a loan of up to Rs 1 crore. Usually, it takes around 8-12 days for the loan processing to be completed and approval/rejection of the loan application takes just 59 minutes.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.