Loan for Startup

1
Loan for Startup

• Startup India campaign was announced in the year
  2015, with that a rapid growth in new Micro,
  Small Medium Enterprises (MSMEs) has been
  reflected so far. The action plan aims at
  promoting bank financing for startups. It has
  also encouraged the startups newly setting up
  businesses, which will eventually lead to more
  job creation and shall help in the nations
  economic growth.
• Loan for startup business are often provided by
  various banks and leading financial
  institutions. financeseva Loan for Startup
  Interest Rate begin at _at_8 onwards. To avail such
  business loan, one needs to meet the eligibility
  requirements that are required by lenders to
  unlock popular business loan schemes.

2
Eligibility Criteria for Loan for Startup

• Applicant age should be minimum 21 and 65 years
• Applicant should have a well-drafted business
  plan or project report
• Startup to be formed must as a sole
  proprietorship, partnership firm, private or
  public limited company or a limited liability
  partnership (LLP)
• Credit score of 750 or above
• Applicant with no previous loan defaults with any
  bank are preferred by lender
• Annual turnover of the firm should not exceed Rs.
  25 Crore.

3
Types of Business Loan Schemes for Startup in
India

• Term Loan (Short-term/Long-term)
• Working Capital Loan
• Overdraft Facility
• Loans under Pradhan Mantri Mudra Yojana
• Letter of Credit
• Bill/Invoice Discounting
• Startup India from Government of India
• Micro Loans from NPO NGOs