The business mentors and financial industry experts we work with keep telling us that entrepreneurs and business owners should not spend any of the funds they raise while they’re still in the initial stages of starting a business. On the other hand, the experts also say that you should apply for loans when you don’t need it.
What this means is that you need to apply right now for loans and other SME finance that is suitable for you. Then you will have the funding you need on Day 1, when you want to start building your business and running it without having to look for equipment loans, operational capital, etc.
So whether you need it or not, call your bank, investors and other lenders today to start the application process for raising small business finance. If you need more options, listed below are some of the top low and zero interest small business loans and loan providers you should contact and apply for.
Government Loan Schemes for MSMEs
The two main government loans for small business that you can apply for are Mudra Loans and Stand Up India. The details of the loan schemes, eligibility, application process, documents and forms needed for these two government loans are provided here.
One more government loan scheme, for smaller amounts of up to Rs. 1 lakh, is the Prime Minister’s Rozgar Yojana (PMRY). The scheme is aimed at creating jobs for unemployed youth by offering them loans to start their own small business.
PMRY details: No collateral required for loans of up to Rs. 1 lakh. Subsidy of up to 15% or Rs. 7,500, whichever is lower. Normal bank rate of interest, with repayment period of 3-7 years. Training (1-10 days for small business / services, and 15-20 days for industry) will be provided.
– Read more about PMRY eligiblity criteria and application process on dcmsme.gov.in.
– Download the PMRY loan application form here.)
SME Financing Consultants
Yomillio – Matches SMEs to the right funding partners. Submit your application now for unsecured and secured loans.
Analytical Investments – Bank loans for starting a small business. Your SME loan approval is just one click away.
Best Bank for Small Business Loan
Even if you’re not able to get a Mudra loan or PMRY loan, you can still apply for small business loans directly from the best public, private and cooperative banks, and from the fast growing NBFCs that are now offering fast and easy business loans with very little paperwork.
HDFC – Business loans from HDFC Bank. Get a business loan offer with interest rate in a minute.
ICICI – Collateral free SME loans include unsecured overdraft facility up to Rs. 25 lakh to their existing customers, and up to Rs. 1 crore under CGTMSE scheme.
Axis Bank – MSE and SME Power Loans for manufacturing and business services, along with Zero Collateral Loans under CGTMSE for working capital and term finance.
Yes Bank – Yes SME Loans, catering to different segments and industries, including cash backed lending programmes and channel finance.
Citibank – Citi Commercial Bank and CitiBusiness provides micro, small and medium scale businesses
SBI – Very simple, very fast and very easy online loan application for SMEs. Apply now – https://sbiforsme.sbi.co.in/SME/.
Kotak Mahindra Bank – Online loan application, with hassle-free and quick approval of Rs. 3 lakhs to Rs. 75 lakhs. Includes business loans, cash credit (CC), over draft (OD), letter of credit (LC), bank guarantee (BG), buyers credit (BC), and various financial assistance and products for export businesses.
Bajaj Finserv – MSME and SME loans of up to Rs. 30 lakh, with minimum documentation and approval within 24 hours. Bajaj Finserv also provides collateral free loans with no guarantors required.