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From Idea To Reality: How Startup Business Loans Are Helping Entrepreneurs In India

Gone are the days when small business entrepreneurs used to go insane for securing business loans to start their businesses. With the Modi Government taking the steering wheel of the Indian Government operations, the scene of loan procurement has changed rapidly. With so many options of startup loans from the Government’s side, now startup owners can really fullfill their dreams to reality. Some of the most notable loans among them are National e-Governance Plan, Startup India and Startup India Action Plan. You just have to visit the respective websites and can have an idea of the types of startup business loan in India and the process of getting them.

Startup Business Loans

How are the different Startup Business Loans Helping Entrepreneurs in India build up their businesses from idea to reality?

The Bank Credit Facilitation Scheme is India’s go-to solution for entrepreneurs who are looking for startup business loan in India. The Government of India launched it as a facilitation for the flow of credit to the MSME sectors. This Scheme is designed to not only assist small businesses but also to help them to grow and create more jobs. The Scheme provides access to credit at an affordable rate and ensures that the loan amount is disbursed to eligible borrowers within a specified period. Under this Scheme, banks are required to provide startup business loans in India at competitive interest rates and flexible repayment terms. This Scheme also ensures that the loan is secured against collateral or a third-party guarantee. This Scheme enables entrepreneurs to secure startup business loans in India with minimal paperwork and hassle.

The Credit Guarantee Scheme (CGS) helps in giving loan facilities to startup businesses in India. Under the CGS scheme, the government guarantees the banks and lending institutions against the loans given to eligible SMEs. This Scheme helps them to avail of credit without any collateral or security. This helps the entrepreneurs to avail credit facilities from lending institutions without any security or collateral. The Scheme also provides some relief to the lenders as the loan amount is guaranteed. This reduces their risk and helps them to lend more to small and medium-scale businesses.

The Mahila Udyam Nidhi Scheme is a scheme introduced by the Government of India to promote entrepreneurship among women. This Scheme helps women entrepreneurs in India to start their businesses and become self-sufficient. The Scheme provides financial assistance in the form of loans up to Rs. 10 lakhs to eligible women entrepreneurs. The main objective of the Scheme is to promote women’s economic empowerment.  The Scheme also encourages them to invest in small-scale industries and to become financially independent.

The government of India launched the Orient Mahila Vikas Yojana Scheme to promote and encourage entrepreneurship amongst women and help them become financially independent. This Scheme provides startup business loans in India to women who have an innovative idea or a small business and need financial assistance to kickstart the venture. Under this Scheme, eligible women can avail of up to Rs. 10 Lakhs of the loan at a very low-interest rate. This loan can buy any machinery, equipment, or raw materials required to start or expand the business. The Scheme has not only helped in providing financial assistance to women but also provided them with various other benefits. These benefits include free training and mentorship programs, access to free counselling services, a dedicated customer service team, and a dedicated portal for tracking the progress of their businesses.

Why is revenue-based financing the best loan option if you seek the less risky loan options in India?

Revenue-based financing is one of the best loan options available in India if you are looking for a low-risk loan. This type of loan is tailored for small businesses, like startups, looking for a way to finance their growth. As the name suggests, the loan is based on the borrower’s Revenue, and repayment is made as a percentage of the Revenue. This makes it an excellent option for startups just starting and who need more collateral or cash flow to secure a traditional loan. A revenue-based loan is an attractive option for startups in India because it does not require any collateral and does not burden the company with a large fixed repayment amount. The borrower pays only a percentage of their Revenue, which allows them to manage their cash flow better. The loan is also flexible, so the borrower can adjust their repayment amount as their revenues fluctuate. As a startup business loan in India, this loan also carries the least risk for the lender. Since the loan is based on the borrower’s Revenue, the lender is not exposed to the same amount of risk as they would be with a traditional loan. This makes it an attractive option for lenders investing in startups in India.

Summary –

Velocity offers a revenue-based loan with an easy and flexible repayment schedule. The repayment period is based on the business’s income, and the loan amount can be increased or decreased depending on the Revenue generated. This helps to reduce the risk of default, as the borrower only has to pay back the loan as and when the Revenue comes in. It also offers competitive interest rates with its Revenue-based financing. This helps reduce the loan’s overall cost, making it an attractive option for borrowers.

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