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Starting a business or any new adventure requires some amount of money. You can start small and scale up as your products or services become more popular and reaching new audiences. No matter how little or small, you are most certainly going to need money to invest in yourself first – learning new or developing existing skills required to run your business smoothly.

In addition, start-up cost like purchasing the software, advertising and if you deal in physical products, you need initial investment in inventory before lines of credit become available from your supplier. The simple and straightforward answer is that you need money to make money, but it doesn’t have to be over the top. You can start small business according to your budget and scale-up by reinvesting the profit into the business to expand and grow big.

In single sentence it can be said that “money is blood for business”.

1. Pradhan Mantri MUDRA Yojana (PMMY):

It is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.

These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal

Under the aegis of PMMY, MUDRA has created three products.

S. No. Products Explanation
1. Shishu Under this type loans up to Rs. 50,000/-.

This stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started.

2. Kishore Under this type loans up to Rs. 5,00,000/-.

This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobilize their business.

3. Tarun Under this type loans up to Rs. 10,00,000/-.

If an entrepreneur meets the required eligibility conditions, he/she could apply loan for up to Rs.10 lakhs. This would be the highest level of amount that an entrepreneur could apply for a start-up loan.

The business should be either one of the following:

  • Small manufacturing enterprise
  • Shopkeepers
  • Artisans
  • Activities allied to agriculture

2. Stand-Up India:

Stand-Up India (SUI) scheme for financing SC/ST and/or Women Entrepreneurs has been launched by Hon’ble Prime Minister (PM) on April 05, 2016.

The objective of the SUI scheme is to facilitate bank loans between Rs.10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least a woman borrower per bank branch for setting up a greenfield enterprise.

This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur.

Borrower should not be in default to any Bank / Financial Institution.

The borrower can approach any of the lending institutions mentioned above or can apply online through this portal

3. PM SVANidhi:

Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers.

They are known as vendors, hawkers, the lewala, rehriwala, the liphadwala etc. in different areas/ contexts. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakod as, breads, eggs, textile, apparel, footwear, artisan products, books/ stationary etc. The services include barber shops, cobblers, pan shops, laundry services etc.

The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors. They usually work with a small capital base and might have consumed the same during the lockdown. Therefore, there is an urgent need to provide credit for working capital to street vendors to resume their business.

It facilitates working capital loans up to Rs. 10,000/-. 

For the above loans the first foremost requirement is that all the documents pertain to business should be complete in all aspects. Tenure of loan can be up to 7 years.

Author Bio

He is CA. Gaurav Sharma and working as a Finance Professional in Aditya Birla Group (ABG). He is always down to connect and answer the questions. You can reach out on his social media and if you'd like to contact him for business purposes, you can reach out to him at on hi View Full Profile

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May 2024