The new year brings fresh and innovative business prospects to your creative minds. Granting start-ups will make those innovations feasible.
Yet it's not always straightforward to address the issue of how to get funding for a startup. You must know where you are going to look and get ready to do the job you need to make your dream come true.
It is time you took a near dive into your investment opportunities if you really want to get a startup off the ground and see it become a profitable venture.
The first stage anytime you need money to start up a company is to report the initial costs. Take out all needless or unsustainable costs in order to detect the critical criteria of the startup.
Startup loans for budding entrepreneurs
In order to collect funds to launch your own company or extend your existing business, you can secure a start-up business loan from any bank or financial institution. The interest rate paid to the bank depends on the amount of the loan you earn and the tenure of repayment.
What To Consider While Requesting A Loan?
The borrowers shall execute the paperwork required and send documentation for the use of these credits. As the government funds the projects, some of the loans are free of collateral. In the following you will notice some points to review before applying for the loan:
1. Personal record: background information is reviewed. Crimes performed or criminal history will disqualify or postpone the loan sanction phase.
2. Based on resume or company background: information of the company and applicant’s skills in developing the business will be asked.
3. Business proposal: the borrower has to bring into the loan document a well-considered business plan.
4. Business and personal tax return: for a period of three years, candidates must submit personal and corporate tax returns.
5. Financial reports: the claimant shall apply the statement of benefit and loss, the bank statement, the balance sheets, and the cash flow forecasting.
6. Legal documents: the requester must ensure that the company works legally.
7. Collateral: collateral strengthens your profile and will assist you to receive a greater amount of loan.
The qualifying conditions for the use of start-up corporate loans can vary from borrower to creditors but are generic and therefore been listen below:
1. The candidate must not be under age 21 or must not be above the legal age of 65 years.
2. The nominee must be an Indian resident.
3. Candidates should include a corporate strategy.
4. The firm will need an incubation letter
5. The organization must deliver a framework and product for innovation purposes.
6. A patron assurance from the Indian Patent and Trademark Office should be secured by the company.
7. It must be a young firm and not more than 5 years old.
INTEREST RATE FOR STARTUP LOANS IN INDIA
The interest rate and maturity tenure differ between banks. The interest rate, though, varies between 10.99% and 21% a year. The sum lent shall also be subject to a transaction fee. The tenure is up to five years.
HOW TO REQUEST A GOVERNMENT LOAN?
Here are few ways to apply for a start-up business loan are:
- Visit the official website of the lender to order the loan by completing the form and submitting the required paperwork.
- Visit the closest lender's branch to have the form and documentation for the loan application.
- You may also contact the customer service of the loan company to offer help for a start-up loan application.
HERE ARE FEW GOVERNMENT LOANS FOR YOUR STARTUP!
- MSME Business Loans in 59 Minutes
- The Credit Guarantee Scheme (CGS)
- Stand Up India Scheme
- Coir Udyami Yojana
- National Bank for Agriculture and Rural Development (NABARD)
- Credit Link Capital Subsidy Scheme
- National Small Industries Corporation Subsidy
A huge number of start-up firms live in India. The number of cottage industries and small units is increasing. However, start-ups and micro-industries need capital to grow, manage, and succeed in the global giant market. Since these units lack access to price raising, the Government has taken the lead to fund these small scale enterprises and facilitate them.