Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Government Loans for Small Scale Businesses is Rated as "Great!" by 99568 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 industries Conducting 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 businesses Helping in linking small scale industries to large and medium scale industries Development 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

    • ICICI Bank Personal Loan
      "Optional personal loan"
      0.5 3.0/5 "Satisfactory"
      In the year of 2007, i have taken my personal loan from ICICI. They were good in processing the loan and they do charged me a processing fee of Rs, 1000 and otherwise i found everything is fine. The amount automatically has been deducted from my salary account. I'm not aware of the interest rates provided by them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Citibank Personal Loan
      "Not affordble by common people"
      0.5 4.0/5 "Great!"
      The way process the loan was not too bad. Since i hold a salary account with them, i have chosen the CITI bank personal loan. The other 2 more months for closing the loan and i thought of wrong choice of choosing the CITI bank loan. Interest rates are comparatively higher than the market rates and they have charged me a Rs. 1000 as processing fee.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • IndusInd Bank Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been applied for personal loan with Indusind bank.They have given me good loan amount based on requirement they have given me good loan amount, and the rate of interest they have charged me was up to 12% it is nominal compare to other bank,and that time there was offer that zero processing fee,and the loan was on time.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Feb 16, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service for first time, I came to know about their service through on line, like i use to see in promotional advertisement in face book or in television, and i have been using website it is easy to access.Their overall service is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • IDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have recently applied for personal loan with IDFC bank. The loan amount which they have given me was good, based on my requirement they have given me good loan amount, and the rate of interest they have charged me up to 11.25% which is nominal,and they have charged me processing fee up to 7000 that too was nominal,Their overall service is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Citibank Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I am happy with CITI BANK services as my request was addressed and was taken care by them. When comparing with other banks the interest rate was nominal. The whole application process was easy and hassle free. It was a really fast personal loan experience.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Axis Bank Personal Loan
      "Interest rate should be reduced"
      0.5 3.0/5 "Satisfactory"
      I took one loan from AXIS bank, the interest rate is average, I believe I got the principal with the interest of 16% and above. The executive are good, they door step service was there. I took the loan for 48 months, the bank gave me the part payment and foreclosure option.
      Was this review helpful? 0
      , chennai
      Reviewed on Feb 16, 2019
    • Axis Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan with AXIS bank and it was a very good experience, the loan amount was based on my requirement and the rate of interest was nominal when compared to other banks. Customer service was good and they collected documents on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Personal Loan
      "Best service"
      0.5 4.0/5 "Great!"
      I came to know about bank bazaar service through on line,like i was checking for my credit report and i have applied through it, and i am happy with their service, i have been using this bank bazaar service beyond one year, and i have been using mobile application it is user friendly application.
      Was this review helpful? 2
      , bangalore
      Reviewed on Feb 16, 2019
    • Tata capital Personal Loan
      "Average service"
      0.5 3.5/5 "Pretty good"
      I have applied for Tata capital for an personal loan .Their was clear misunderstanding between the bank, like i have applied for 2,50,000 as an personal loan and they thought i am asking for an top up so they have given me just 1,50,000 ,and 1,00,000 they took as closure of that loan, and the rate of interest they have charged me 10.99% which was nominal,and even processing fee they have charged me was nominal, and the loan was on time.
      Was this review helpful? 2
      , bangalore
      Reviewed on Feb 16, 2019
    • IDFC Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan with IDFC bank from last 5 years, the loan amount was for Rs 6 lacs with tenure period of 5 years. Customer service was good and they collected documents on time. The rate of interest was nominal when compared to other banks.
      Was this review helpful? 1
      , mumbai
      Reviewed on Feb 16, 2019
    • ICICI Bank Personal Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan yesterday where the experience i had was quite awesome. They had called me up and offered me with a loan where i went through the iMobile application and it has just taken 2-3 minutes in getting this loan. The interest rate which they offered is around 13.99% and the tenure period is for five years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 16, 2019
    • IndusInd Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been applied for Indusind bank personal loan recently. And i am not happy with the loan amount which they have given me , as i required up to 5,00,000 but they have given me less, and the rate of interest they have charged me up to 11% which is nominal ,and they have not charged me processing fee, and there was quite delay in getting my loan, it took around 1 month to getting loan.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2019
    • Citibank Personal Loan
      "Instead of top up they can provide new loan"
      0.5 4.0/5 "Great!"
      CITI bank personal loan have only top up facility. The interest rates were fair and the processing fee was 1% which is good. They have sanctioned the loan within few hours. I have not faced any issues in this loan. Total tenure period of the loan is 14 months.
      Was this review helpful? 1
      , bangalore
      Reviewed on Feb 16, 2019
    • HDFC Bank Personal Loan
      "Reduce the interest rate"
      0.5 5.0/5 "Blown Away!"
      HDFC interest rates are more compared to other bank but we can able to get the loan in seconds by using their app. The service has been fantastic. They have offered me a rate of interest which is 11% but they have increased upto 17% which is showing in the app and they are providing the loan without any documents.
      Was this review helpful? 2
      , bangalore
      Reviewed on Feb 16, 2019
    • RBL Bank Personal Loan
      "Friend in need"
      0.5 5.0/5 "Blown Away!"
      RBL personal loan services are fantastic. The loan is getting over in few months. They have sanctioned the loan immediately and they have given me loan amount of my credit limit. Total tenure period of the loan is 12 months. Interest rates are fine and processing fee was 2% which is too high. I never had any issue with them.
      Was this review helpful? 2
      , bangalore
      Reviewed on Feb 16, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using Bank bazaar service for first time,and i came to know about bank bazaar service through on line, and the best part in this service is that in one click they response me well,and i have downloaded mobile application it is easy to access.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 16, 2019
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with HDFC bank and my experience was good, the loan amount was sufficient and the rate of interest was nominal when compared to other banks. Customer service was good and they responded on time. Tenure period for this loan is 5 years and i preclosed the loan in 3 years with nominal preclosure charges.
      Was this review helpful? 2
      , bangalore
      Reviewed on Feb 15, 2019
    • review Personal Loan
      "Not satisfied with the service "
      0.5 1.0/5 "Really Bad"
      Based on my previous experience with Bajaj for consumer loan based on that i have taken personal loan where they given some high rate of interest than what they promised for. They have high charges for the processing and documentation . Overall am not happy with their financial service.
      Was this review helpful? 1
      , chennai
      Reviewed on Feb 15, 2019
    • ICICI Bank Personal Loan
      "Best financial Service"
      0.5 5.0/5 "Blown Away!"
      I have taken personal loan from Icici bank . Am satisfied with the rate of interest which they have provided . There is processing fees for the loan which is nominal one and its been refunded . I make the payments through Ecs every month . They gave the tenure period of 2 years . They did quick documentation and received the loan.
      Was this review helpful? 2
      , chennai
      Reviewed on Feb 15, 2019
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