Business loan

Top 5 Government Business Loan Programs in India in 2022


The Government of India (GOI) initiates various programs and policies to bring about change in the economic situation of the country. The factors related to the futuristic approach of various companies must be secured and supported by financial assistance from the government itself.

Finance is the main reason that any type of business, whether large or small, can generate capital. Financial liquidity with additional funding will help businesses by involving them in a variety of programs like a helping hand.

There are several micro, small and medium enterprises (MSMEs) which are a combination of registered and unregistered enterprises. The government has even considered various programs to boost the activities of MSMEs and enhance the growth of the Indian economy.

Here is the list of the 5 best government business loan programs in 2022:

Top 5 public business loan programs in 2022: MSME loan program

  • The loan was introduced by the Indian government focusing on the working capital loan
  • This scheme can be preferred by new and existing businesses with the financial assistance of Rs 1 crore
  • Approval is done within 59 minutes of the request.

(Interest rate) ROI: 8 percent

Reservation Women Entrepreneurs: 3 percent

Loan processing time: 8 to 12 days

Top 5 public business loan programs in 2022:Credit guarantee fund system

This program provides unsecured loans to MSMEs. Programmed commercial banks and regional rural banks can be part of the program by choosing themselves as the lending authority.

Working capital loans: Rs 10 lakhs without guarantee in guarantee

Credit facilities: Rs 10 lakh and up to Rs 1 crore

Security: Primary security and mortgage of assets such as land and buildings.

Top 5 public business loan programs in 2022:MUDRA loan

The Micro-Unit Development and Refinancing Agency (MUDRA) takes the initiative in financing small businesses and startups to obtain financial support for low-cost credit.

The Mudra loan provides micro or small businesses that are operated in the manufacturing, trade and service sector.

The loan is registered through public and private sector banks, cooperative societies, small banks, regular commercial banks and rural banks.

The MUDRA loan is guaranteed by Three categories:

  • Sishu loans: 50,000 rupees
  • Kishor Loans: 5,00,000 rupees
  • Tarun loans: 10,00,000 rupees

Top 5 public business loan programs in 2022:Credit Link Capital Grant Program

This loan includes funds for technology upgrades in your business. Basically used to reorganize various processes such as manufacturing, marketing and supply chain.

The cost of production is also reduced for the creation and supply of goods and services to SMEs.

The program offers a capital grant of around 15 percent for qualifying businesses.

Loan limit: Rs 15 lakh

Eligibility: Sole proprietorship, general partnership, cooperative society or public limited company

Grant from the National Small Industries Corporation: This subsidy consists of opting for the aid scheme for raw materials where a company can finance the cost of domestic and imported raw materials needed by the company.

Along with the marketing strategy, the funds can be used to create competitive market value for the business offerings.

This helps the functioning of MSMEs to improve production and quality.

NSIC offers MSMEs of them different types of financing:

  • Raw materials help
  • Marketing assistance

Read: 10 Useful Government Apps Every Indian Should Download: Everything You Need To Know

Read: Looking to buy government bonds by opening a Gilt account with the RBI? Here is how you can do it