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  • Government Loans for Small Scale Businesses is Rated as "Great!" by 96713 Users

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    Government Loans for Small Scale Businesses

    Small Scale Businesses or industries need better support and financial aid in order to have proper growth and flourish well in the face of stiff competition from companies or organisation that are privately funded or have an established presence in the market.

    Financing provided by the government is preferred because of lower rates available under government schemes. Such loans also help out in managing the day-to-day funding requirements of a business. There are many public sector banks which work in tandem with various government organisations to provide loans under government-aided schemes. Some of the prominent names are State Bank of India, Andhra Bank and Bank of Baroda, among others.

    Financing Facilities available for Small Scale Businesses

    There are many different facilities as per which loans or financing options are available to small scale businesses and their entrepreneurs. Some of the more popular ones are as follows

    1. Working Capital Finance – Can be availed through direct funding or a letter of credit. This kind of financing can help aid in the operating expenses of a business and it can also help in purchasing assets related to small scale businesses
    2. Corporate Term Loans – Applied and used for starting new ventures, in the running of existing business or for expansion in any particular market
    3. Term FinanceTerm Loans are helpful in purchasing fixed assets like buildings, machinery and the like. With floating interest rates, these loans generally have a repayment period that could go up to 10 years

    Specific types of Loans available from Public Sector Banks

    The aforementioned banks have a variety of schemes under which operating finance is provided to small businesses. An overview of such schemes as per specific banks is mentioned below.

    1. State Bank of India – Probably the first destination for most small scale entrepreneurs, SBI offers loans and schemes through multiple channels to allow a holistic financial support for small scale businesses. The bank extends specialised help to agricultural businesses and has set up specific centres that are present in rural and semi-urban branches. A few of its schemes pertaining to the development of agriculture are
      1. Crop Loan
      2. Horticulture Financing
      3. Farm Mechanisation Schemes
      4. Land Development Schemes
      5. Minor Irrigation Projects
      6. Agricultural Term Loans

    Some of its funding schemes for businesses other than agriculture are as follows

    1. Working Capital Finance
    2. Corporate Term Loans
    3. Deferred Payment Guarantees
    4. Project Finance
    5. Structured Finance
    1. Bank of Baroda - This bank has a few schemes aimed at providing financial aid to small scale entrepreneurs but they have been quite effective nonetheless and are quite popular in the same sector. The schemes offered by Bank of Baroda can be listed as below-
      1. Working Capital Finance
      2. Term Finance
      3. Small and Medium Enterprise Loan Pack
      4. Small Business Borrowers
      5. Traders Loan
    2. Andhra Bank - There are a variety of schemes offered by Andhra Bank and these mainly cater to the corporate and agricultural sector. A few of the important loan schemes available for small scale businesses are -
      1. Working Capital Loans
      2. Export and Import Finance
      3. Advance against Shares
      4. Term Finance
      5. Corporate Loans
      6. Project Finance
      7. Infrastructure Project Finance
      8. Kisan Vikas Card
      9. Kisan Sampathi
      10. Self Help Groups-Bank Linkage Programme
      11. Kisan Green Card

    Loan Schemes and Facilities initiated by the Government of India

    Apart from banks which provide financial support to small business through special loan schemes, the government of India has also set up schemes and makes use of different associations in order to zero in on businesses which might require financial support. Most of the programmes initiated by the government are implemented through the following organisations

    Small Industries Development Organisation (SIDO)

    It serves to promote and helps in development of small scale industries. The major functions of this entity are as follows

    Advising the government on new schemes for small scale industriesConducting surveys on the small scale industry sector and ascertaining key growth factors

    Liaison with central ministry, planning commission, state governments, financial institutions and other organisations related to the development of small scale businessesHelping in linking small scale industries to large and medium scale industriesDevelopment of human resources through training and skill upgrades

    For the above-mentioned functions, some of the schemes put forth by SIDO are as follows

    Credit Linked Capital Subsidy Scheme for Technology Upgradation

    Credit Guarantee Scheme

    ISO 9000/ISO 14001 Certification Reimbursement Scheme

    Integrated Infrastructure Development (IID Scheme)

    SSI MDA Scheme

    Assistance to Entrepreneurship Development Institutes

    Micro Finance Programme

    National Small Industries Corporation Limited (NSIC)

    Established to provide specially tailored schemes that facilitate

    Marketing support through promotion and other contemporary means of marketingCredit support through functions like

    Equipment financing

    Raw material procurement financing

    Marketing activities financing

    Bank-syndication aided financing

    Performance and credit rating system

    Technology support which allows material testing, implementation of new techniques, energy and environment services and training facilities

    Small Industries Development Bank of India (SIDBI)

    Established in 1990, this institution is by far the most popular one when considering the growth and development of small businesses. The schemes provided by SIDBI are as follows

    Direct Assistance Scheme

    Indirect Assistance Scheme

    Promotional and Development Activities

    National Equity Fund, Scheme

    Technology Development and Modernization Fund Scheme

    Single Window Scheme

    Mahila Udyam Nidhi (MUN)

    Scheme and Equipment Finance Scheme

    National Bank for Agriculture and Rural Development (NABARD)

    It promotes mainly agro-based rural businesses. The financial aid offered by NABARD is extended mainly to cottage and village industries

    World Association for Small and Medium Enterprises (WASME)

    It is the only non-government organisation for SMEs in India. Apart from promoting the development of small and medium businesses in the country, it also provides some subsidised schemes for the growth of rural industries

    Apart from the national schemes and organisations mentioned in here, there are also separate entities and schemes set up by many state governments whose focus is aimed at supporting and aiding industries and businesses exclusive to particular states and regions.

    Government Loans for Small Scale Businesses Reviews

    • Citibank Personal Loan
      "Overall good"
      0.5 4.0/5 "Great!"
      I had no issues to get the personal loan with Citibank. The process was fine and I got the loan as needed. The customer support and response is fine as well as they contacted me on time. I am not sure on the rate of interest and processing charges.
      Was this review helpful? 2
      , new delhi
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      Due to Bank Bazaar, only I got early salary short term plan. I had gone through the service provider and they helped me out. The online application is also good, the customer service is amazing. They call me back to back, if I busy they call me again to service.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Qucik Process"
      0.5 4.0/5 "Great!"
      The response is good even the loan was disbursed on time. I am very satisfied with the Early salary and the interest rate is good and enough. I took 10K with Early Salary and they have charged around Rs. 600 and I will pay the loan within one month.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Dec 07, 2018
    • Axis Bank Personal Loan
      "Its Average"
      0.5 5.0/5 "Blown Away!"
      In Axis bank the interest rate is high comparatively but its very easy to approach. I have been kept follow up with Axis but they taken some time process the personal loan application. I think they are charging some fee for per closuring the loan.
      Was this review helpful? 3
      , salem
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bank bazaar where i am using it through the website where it is user friendly portal to access. The customer service is responsive also they explain the details of the loan. It is a very good portal to use.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar.com gave me good support, all the services are good,they call and intimated about the application. Recently I started using the application, the experience is really good. I came to the site through the promotion mail its fine.
      Was this review helpful? 2
      , vijayawada
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using with the personal loan from the ICICI BANK from past four years, there service is too good, they have charged me nominal rate of interest in this loan and even processing fee they have charged me was nominal ,the loan amount they have given me was sufficient.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Charges should be reduced"
      0.5 5.0/5 "Blown Away!"
      The customer support is good, they gave good support, initially they told charges would be low, they finally they charged high for the amount of Rs.1.9 lakh, I think they taken Rs.2500 processing fee +7500 for some other charges. Finally I got Rs. 1.8 lakh in my hand.
      Was this review helpful? 1
      , vijayawada
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Easy to approch"
      0.5 4.0/5 "Great!"
      First time I have used this site to take the personal loan through online, the customer support is good. I came know about Bank Bazaar application through online, the website is very simple and to see all the offers in the market. I have been using mobile app is very easy.
      Was this review helpful? 2
      , mumbai
      Reviewed on Dec 07, 2018
    • IndusInd Bank Personal Loan
      "Interest rate should be reduced"
      0.5 4.0/5 "Great!"
      The response is very good for the loan amount they have gave me 14%, the loan amount approval is good. The processing fee is there for the amount Rs. 5 lakhs, the process is easy. Everything is good expect the interest rate it would be great if they reduce.
      Was this review helpful? 3
      , mumbai
      Reviewed on Dec 07, 2018
    • Kotak Personal Loan
      "Not user friendly loan"
      0.5 3.0/5 "Satisfactory"
      Got my personal loan 2.5 years ago. I have received the loan amount of 4.5 lakhs and they have provided me a interest rate of 17% which is quite high. Processing fee also high. I have paid the EMI of Rs. 12000 and i have selected the tenure period of 5 years. There is no partial payment and pre-closure facility available.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Not recommendable bank"
      0.5 4.0/5 "Great!"
      Bought my personal loan 2.5 years back. I have received the loan amount of Rs. 1.50 lakhs. They have given me a interest rate of 15% for this reason i have done a balance transfer to some other bank. I have paid the EMI of Rs. 5000 for the tenure period of 3 years. I have received the loan on time and the documentation process is quite easy.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 07, 2018
    • IndusInd Bank Personal Loan
      "Not recommendable bank"
      0.5 5.0/5 "Blown Away!"
      I have purchased the loan 1.5 year back. They have offered me a interest rate of 11.28% and I'm happy about the interest rate. I have applied the amount of Rs. 7.8 lakhs and i have received the same. I got the loan on time. I pay the loan amount of Rs. 170000 approximately and i have chosen the tenure period of 5 years. They should inform the partial payment facility to the customer.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have been using BANK BAZAAR services for a while . The customer services is very responsible and helpful compare to others . I can compare every financial product from one website . So far it has been very good experience with bank bazaar . .
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Timely saving website"
      0.5 4.0/5 "Great!"
      The comparison option is good about the many banking information its helped to chose the best thing at one point.I got so many calls rather going to the bank. Bank Bazaar helped me to get call from the bank its made the process very faster. But value added response is not quick. I suggest it should be faster and the frequent call should be avoided.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Personal Loan from the EARLY SALARY , the loan amount was satisfactory and it was a very fast service when I needed money. Overall it is very useful when you require money for emergency purposes. The tenure period is 1 month . Customer service is good and prompt .
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Tata capital Personal Loan
      "Process should be simple"
      0.5 4.0/5 "Great!"
      The experience was average, because they were multiple call for the same request. I uploaded the documents then again collected physical documents again they came for signature. Finally they taken 15 days to sanction the loan and I felt the interest is higher.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      BANK BAZAAR provides the best service for me because i never expected this much soon i will receive my loan this much soon , i did not face any issue at the time of documentation . Website and is very easy to use with bank bazaar. Overall it has been good experience with bank bazaar .
      Was this review helpful? 2
      , mumbai
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Personal Loan from the EARLY SALARY , there are so much hidden charges they charge 3000 rs without my knowledge . The loan application process took few days . The loan amount was credited to my account with in no time. The interest rates are also nominal when compared to other banks in the market.
      Was this review helpful? 1
      , mumbai
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar makes it easier to compare and choose various financial products online. Customer service is good they are very prompt . Website is very easy to use of bank bazaar . So far it was good experience . Mobile application also good to use . My loan experience is good .
      Was this review helpful? 3
      , jodhpur
      Reviewed on Dec 07, 2018
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