Name:- Apurva Anil Gangurde

Class:- TYAN Roll No:-15 Batch:-A

Subject: -Entrepreneurship Development (22032) Date: -30-01-2024
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Practical No.5: - Visit a bank/financial institute to enquire about various funding
schemes for small scale enterprise.
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Government Business Loan Schemes
An economy's growth depends on its MSMEs (Micro, Small and Medium Enterprises).
MSMEs always provide a remedial solution to the significant economic problems such as
poverty, unemployment, income inequality, regional imbalances and so on. Its vital role
ensures a balance in local development, and income equality. This industry is responsible for
providing employment to millions of people in our country, and the harnessing of local talent
which in turn plays a pivotal role in contributing to the GDP of the country.
1. MSME Loan in 59 Minutes:
• This scheme, also known as PSB Loan in 59 minutes, launched by the Government of
India in which introduced a quick business loan portal for the individuals who need to
expand their existing business.
• Under this scheme, MSMEs can get loan amounts from INR 1 lakh to INR 5 crores in
less than 59 minutes at an interest rate of 8.50% from public and private sector banks and
NBFCs (Non-Banking financial companies). MSME/PSB Loans in 59 minutes provides
you with the required financial resources in the stipulated time and pretty quickly.
• There are some factors which determine the eligibility of business:
i. Income/Revenue
ii. Repayment capacity of the borrower
iii. Existing credit facilities
Other factors set by the financial lender.

There are other benefits to this scheme:

I. The entire loan process expects to be duper quick and too, with minimal
documentation.
II. The loan processes without human intervention until the last stage of the loan sanction.
That is why it is an Advanced Technology Backed Loans scheme.
III. The loan process always needs a lot of safety and security of applicant’s details. So,
considered this issue, the entire data of the applicant keep safe and secure with the
highest level of security.
2. Pradhan Mantri MUDRA Yojana (PMMY):
• MUDRA stands for Micro Units Development and Refinance Agency Ltd.
• MUDRA provides refinancing support to Banks and NBFCs for lending to Micro units
having loan requirements up to INR 10 lakhs under the scheme of Pradhan Mantri
MUDRA Yojana. Under PMMY, MUDRA divided the loan into three categories as
‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth/development.

Loan Type Coverage Rate of Interest

Shishu Covering loans up to
Rs.50,000
Kishore Covering loans above Rs.
50,000 and up to Rs 5 lakh
Tarun Covering loans above Rs. 5
lakh and up to Rs. 10 lakh
@ 1% to 12% per annum
@ 8.60% to 11.15% per
annum
@ 11.15% to 20% per
annum

 Presently, the purpose of Mudra Loan is not to develop small units but it is offered as a
i. Business loan for the vendors, traders, shopkeeper and other service activities. i
ii. A working capital loan through Mudra card;
iii. Loan for tractors, two-wheeler, or another Transport vehicle (only for
commercial use)
iv. Equipment finance for micro-units.
 Against the Mudra loan amount, it issues a MUDRA Card (as a debit card). Borrowers
can use it for multiple withdrawal and credit facilities so that they can manage the
working capital limit efficiently and keep the interest burden minimum.
 Mudra cards also help in digitalization of all Mudra transactions and keep a record of
borrower’s credit history.
3. Lending kart Business Loan for Women (Private Institute):
India is witnessing a phenomenal growth in its small and medium enterprise sector. A
part of this success story is being written by the country’s women entrepreneurs.
Lending kart is a leading FinTech business finance provider in India. Being a tech-
enabled platform, Lending kart’s business loan approval is based on business analytics
and Big Data technologies.
This means that there is no bias whatsoever when approving or disapproving a business
loan application. Today, business loans for women are also enabling self-employment in
rural and urban India.

Features of Lending kart Business Loans for Women

i. Avail loans up to ₹ 2 Crore

The ticket size of our business loans for women starts at ₹ 50,000 and goes all the
way up to ₹ 2 Crore. It increases the chances of a loan approval for women
entrepreneurs looking for a business loan.
ii. Business loans for women in 3 days
Once you upload the required documents online, we complete the verification
process within 72 hours and disburse the loan funds in your business’s bank
account. Hence, enabling fast execution of your business plans.
iii. Collateral-free business loans for women
Lending kart’s business loans for women do not require any kind of security and
thus, give women entrepreneurs a veritable financial vehicle to grow their
enterprise.
iv. Competitive interest rates
As we use data analytics for calculating all aspects of a loan offer, our business
loans for women come with the best available interest rates for your category. The
process works without any manual intervention and hence is free from any bias or
mischief.
v. Ample time to repay
Our business loans for women are offered with an extended repayment window of
1 month to 36 months, adjusted as per the principal amount. There is also an
option to repay the loan early if your enterprise is doing really well, through bi-
weekly instalments

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