Government-Backed Loan Schemes
Pradhan Mantri Mudra Yojana (PMMY)
Loan Range: Up to ₹10 lakh
Categories:
Shishu: Up to ₹50,000
Kishor: ₹50,001 to ₹5 lakh
Tarun: ₹5 lakh to ₹10 lakh
Features: Collateral-free loans aimed at micro and small enterprises in manufacturing, trading, and services sectors. smestreet.intimesofindia.indiatimes.com+10lemonn.co.in+10rupeeboss.com+10
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Loan Amount: Up to ₹2 crore
Features: Provides collateral-free credit to MSMEs, with the government offering a guarantee cover up to 85% of the loan amount. lemonn.co.in+7startup911.in+7indifi.com+7smestreet.in
Stand-Up India Scheme
Loan Range: ₹10 lakh to ₹1 crore
Target Group: Women entrepreneurs and individuals from SC/ST communities.
Purpose: To facilitate bank loans for setting up greenfield enterprises in manufacturing, services, or trading sectors. lemonn.co.in+3indifi.com+3rupeeboss.com+3indifi.com+5rupeeboss.com+5lemonn.co.in+5
SIDBI Loan Schemes
Loan Amount: ₹10 lakh to ₹25 crore
Features: Offers various loan products including machinery loans, working capital loans, and green finance to support MSME growth. livemint.compoonawallafincorp.com+1indiatvnews.com+1
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
Subsidy: 35% of the project cost (up to ₹10 lakh for individual units)
Purpose: To support micro food processing units with credit-linked subsidies for modernization and formalization. rupeeboss.com+2indifi.com+2timesofindia.indiatimes.com+2timesofindia.indiatimes.com
🏦 Top Bank & NBFC Business Loans
HDFC Bank Business Loan
Loan Amount: Up to ₹50 lakh
Interest Rate: Starting from 1.90% p.a.
Features: Unsecured loans with flexible repayment options and quick disbursal. timesofindia.indiatimes.com+2mymoneymantra.com+2credit.groww.in+2credit.groww.in
Axis Bank Business Loan
Loan Amount: ₹50,000 to ₹50 lakh
Interest Rate: 11.50% p.a to 20% p.a
Features: Collateral-free loans with minimal documentation and fast processing. credit.groww.in+1timesofindia.indiatimes.com+1indifi.com+8lemonn.co.in+8startup911.in+8
ICICI Bank Business Loan
Loan Amount: Up to ₹2 crore
Features: Offers both secured and unsecured loans, with options under CGTMSE for collateral-free credit. lemonn.co.in+5credit.groww.in+5smestreet.in+5credit.groww.in+2smestreet.in+2indifi.com+2
Kotak Mahindra Bank Business Loan
Loan Amount: ₹3 lakh to ₹1 crore
Interest Rate: 12.99% p.a to 14.50% p.a
Features: Tailored loan solutions for SMEs with flexible repayment tenures. lemonn.co.incredit.groww.in+1lemonn.co.in+1
Kinara Capital (NBFC)
Loan Amount: ₹1 lakh to ₹30 lakh
Features: Collateral-free loans with quick disbursal, especially supporting women entrepreneurs and micro-enterprises.
Here are some FAQs related to Top 10 Small Business Loans in India:
❓ 1. What is a small business loan?
A loan designed specifically for small businesses to fund working capital, machinery, inventory, or expansion needs.
❓ 2. Who can apply for small business loans in India?
Micro, small, and medium enterprises (MSMEs), startups, and individual entrepreneurs who meet the lender’s eligibility criteria.
❓ 3. What types of small business loans are available?
Secured loans (backed by collateral) and unsecured loans (without collateral), including government schemes and bank/NBFC products.
❓ 4. How much loan amount can I get?
Loan amounts vary widely — from ₹50,000 under schemes like Mudra Shishu, up to ₹2 crore or more under CGTMSE and bank loans.
❓ 5. Do small business loans require collateral?
Some loans are collateral-free, especially under government schemes like Mudra and CGTMSE. Others may require collateral depending on the lender and loan amount.
❓ 6. What is the interest rate on small business loans?
Interest rates vary from about 8% to 20% per annum depending on the lender, loan type, and borrower’s creditworthiness.
❓ 7. How long does it take to get a small business loan approved?
Approval can range from a few days to a few weeks, depending on documentation and lender processes.
❓ 8. Can I apply for a small business loan online?
Yes, many banks and NBFCs offer online application processes for quick and convenient loan approvals.
❓ 9. Are there any government subsidies or support for small business loans?
Yes, schemes like PM Mudra Yojana and Stand-Up India offer subsidized rates and collateral-free loans to encourage entrepreneurship.
❓ 10. How do I choose the right small business loan?
Consider factors like loan amount, interest rates, processing fees, repayment tenure, and your business’s specific financial needs.