CreditMantri Finserve Private Limited
Door No.3, Block B, No. 147, Workeasy Space Solutions, RK Swamy Centre, Hansa Building, Pathari Road,Thousand Lights, Chennai, Tamil Nadu600006
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
Startup business loans are a vital resource for entrepreneurs looking to establish their own ventures or expand their existing businesses. The interest rate applied to the loan is determined by factors such as the loan amount and the repayment period chosen. Read on to know more about the startup business loans from the Indian government and other financial institutions to grow startups in the country
Understanding Startup Business Loans
They come in various forms like term loans, working capital loans, equipment financing, and more, tailored to cater to the specific needs of startups across diverse sectors.
Startup India Scheme:Recognizing the critical role of startups in driving economic growth, Startup India Scheme has been launched by the Indian government under the Department for Promotion Industry and Internal Trade to startups under 10 years of age and provides several measures like business loans, reduced compliance burden, income tax exemptions, etc. have been brought under one umbrella.
Bank Credit Facilitation Scheme: Managed by the National Small Industries Corporation (NSIC), this scheme collaborates with banks to provide credit to MSME units. Repayment periods range from 5 to 7 years, extendable to 11 years in special cases.
Pradhan Mantri Mudra Yojana (PMMY): Under MUDRA's guidance, this scheme offers loans for various sectors, with three categories based on loan amounts. Beneficiaries include artisans, shopkeepers, and more.
Credit Guarantee Scheme (CGS): Administered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), this scheme provides credit to new and existing MSMEs, excluding certain sectors.
Standup India: Launched by SIDBI, this scheme supports manufacturing, trading, and service enterprises with loans ranging from Rs. 10 lakh to Rs. 1 crore.
Sustainable Finance Scheme: Also by SIDBI, this scheme focuses on industries in green and renewable energy, technology hardware, and sustainable development projects.
Psbloansin59minutes.com: A digital platform facilitating various loans, including business, personal, home, and auto loans, with amounts tailored to different needs.
Several banks in India provide startup business loans with varying terms. Some notable options include:
HDFC Bank: Offers loans up to Rs. 40 lakhs (Rs. 50 lakhs in select locations) with a processing fee of 0.99%. Repayment tenures extend up to 4 years.
TATA Capital: Provides loans ranging from Rs. 50,000 to Rs. 75 lakhs, with a processing fee of 2.50%. Repayment periods reach up to 3 years.
Kotak Mahindra: Offers loans up to Rs. 75 lakhs, with the interest rate determined by factors like loan amount and repayment tenure. The processing fee is 2%.
Fullerton India: Provides loans up to Rs. 50 lakhs with repayment tenures of up to 5 years. Processing fee up to 6.5%.
Two common types of startup business loans are:
When applying for a startup business loan, several considerations are essential:
Detailed Business Plan: A clear and comprehensive business plan outlining objectives, fund utilization, potential returns, and growth projections is crucial.
Loan Amount Estimate: Clearly state the required loan amount in your business plan.
Eligibility criteria and required documents may vary between lenders, but generic requirements include:
Age: Startup owner age between 21 and 65. Some loans require the age of the company to be less than 10 years old.
Citizenship: Applicants must be Indian citizens.
Business Plan: A well-structured business plan is mandatory.
Documents: Required documents range from identity and age proof to bank statements and income evidence.
Reach out to the specific government agency or bank for more details on the business loan.
The Indian government's proactive measures through the different schemes reflect a commitment to empowering startups with financial resources and strategic support. Private and public sector banks also provide loans for startup businesses at attractive terms. As entrepreneurs continue to pave the way for disruption and growth, the availability of these startup business loans stands as a beacon of hope, nurturing the spirit of innovation and entrepreneurship in the country.
1. What is the eligibility criteria for obtaining a startup business loan?
Eligibility criteria may vary among lenders, but generally, startups need to showcase a well-defined business plan, demonstrate the potential for growth, and have a strong management team. Financial projections, market research, and a clear strategy for loan utilization are also key considerations.
2. Are collateral and guarantors required for startup business loans?
Startup business loans generally do not require collaterals. It is essential for the startup to meet the eligibility criteria set by the lending organization.
3. What types of loans are available for startups?
Startups have access to various types of loans, including working capital loans, term loans, equipment financing, and venture capital. Each type serves a specific purpose, such as covering day-to-day operations, purchasing assets, or securing investment for growth.
4. How can startups benefit from startup business loans by Indian government?
Startup business loans by the Indian government like the Startup India Scheme, Bank Credit Facilitation Scheme, Pradhan Mantri Mudra Yojana, Standup India, etc. offer several benefits, including access to business seeding funds, reduced compliance burdens, tax exemptions, etc. These benefits are aimed at simplifying the regulatory environment and promoting growth for startups.
5. What role does a strong business plan play in obtaining a Startup Business Loan?
A well-structured business plan is crucial for obtaining a Startup Business Loan. It outlines your startup's mission, market analysis, revenue projections, and growth strategies. Lenders use this plan to assess the viability of your venture and its ability to repay the loan.
6. Are there specific sectors that are more likely to receive Startup Business Loans?
While Startup Business Loans are available across various sectors, those with high growth potential, innovation, and scalability are generally more attractive to lenders. Technology, healthcare, fintech, and clean energy startups often receive considerable attention due to their disruptive nature.
7. How can startups improve their chances of loan approval
Startups can enhance their chances of loan approval by maintaining a strong credit history, presenting a comprehensive business plan with realistic projections, and demonstrating the management team's expertise. Establishing a clear use of funds and showcasing potential revenue streams can also be beneficial.
8. Is it advisable for startups to rely solely on loans for funding?
While Startup Business Loans provide valuable financial support, diversifying funding sources is recommended. Startups should explore other avenues such as angel investors, venture capital, crowdfunding, and grants to reduce dependency on debt financing.
12 Month Loans
3 Month Loans
6 Month Loans
Animal Husbandry Loan
Business Instalment Loan
Business Loans For Women
Cash Credit Loan
Cold Storage Loan
Collateral Free Loans
Dairy Farm Business Loan
DMI Finance Personal Loan
Ecommerce Loans In India
Government Employee Personal Loan
Government Loans For Small Scale Businesses
HDFC Personal Loan Preclosure Charges
Home Improvement Loans
Instant Cash Loan
Instant Short Term Loans
Kitchen Modernization Loans
Loan Against Credit Card
Loan Against Fixed Deposit
Loan Against Insurance Policy
Loan Against LIC Policy
Loan Against Property Interest Rates
Loan Against Rent Receivables
Loan Against Securities
Loan Against Shares
Loan For Agriculture
Loan For Beauty Parlours
Loan For Businesswomen
Loan For Chartered Accounts
Loan For Construction
Loan For Day Care Centre
Loan For Land Purchase
Loan For Marraige
Loans For Advocates
Loans For Army Personnel
Loans For Defence Personnel And Widows
Loans For Disabled
Loans For Graduates
Loans For Minorities
Loans For People On Benefits
Loans For Restaurants
Loans For Scheduled Caste
Loans For Schools
Loans For Taxi Drivers
Loans For Unemployed People In India
Loans For Warehouse
Long Term Loans
Medical Equipment Loan
Micro Small And Medium Enterprises Loan
Nbfc Personal Loans
Personal Loan Balance Transfer
Personal Loan For Low Credit Score
Personal Loan Of 1 Lakh
Personal Loan Of 10 Lakh
Personal Loan Of 2 Lakh
Personal Loan Of 20 Lakh
Personal Loan Of 3 Lakh
Personal Loan Of 5 Lakh
Personal Loans For Low Salary
Personal Loans For Salaried Employees
Personal Loans For Self Employed
Reverse Mortgage Loans
Same Day Loans
Small And Medium Sized Enterprises Loans
Small Business Loan For Women
Small Business Loans
Top Up Loans
Types Of Working Capital
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf. We do not sell any loans on our own and do not charge any fee from our customers/viewers for the purpose of loan application