Capital Assistance

Prime Minister Narendra Modi's forward outlook on making India a self-reliant nation on a global level has encouraged the cravings in the mind of the members of Aatmnirbhar Sena concerning propelling India on the progressive path of self-sufficiency. Incited by the urge to create India as an independent nation, Aatmnirbhar Sena is dedicatedly striving to make India reach new heights in economic spheres by furnishing capital assistance to small businesses, hawkers and street vendors.

Capital Assistance in Getting Loans

At Aatmnirbhar Sena, we are providing capital assistance in getting loans from banks, Non-banking financial companies, as well as Micro Finance Institutions. We are strengthening the small business enthusiasts, hawkers, street vendors, and other emerging business owners by arranging business loans. Our organization is all set to assist you make smarter financial decisions so that you may prepare the roadmap for the future of your small or medium-scale business. Are you looking for customized small business loans? If your answer is yes, we are gearing up to lend you our support in arranging funds via small business loans for your small business.

If you are looking for short-term loans, intermediate-term loans or long-term loans, experts at Aatmnirbhar Sena will help you in getting loans within a limited time, and we ensure that we have the perfect financing solutions for your small and medium-scale businesses. Our associate business loan providers would meet the urgent financial needs of your small business that is at a rapidly growing stage.

Throwing light on the Uses of a Business Loan

The numerous uses of a business loan are mentioned below-

• It plays a crucial role in increasing the cash flow of your business. 
• In case you are striving to enrich your business with the latest technology, modern equipment and well-equipped tools, you may utilize your business loan. 
• A business loan would help you out if you want to renovate your office. 
• If you are thinking about stocking up on your inventory, you may proceed ahead for taking a business loan. 
• If you are planning for the expansion of your business and widening the horizon is in your mind, you may utilize your business loan. 
• If scaling up operation is a part of your plan, you may utilize your business loan. 
• You can use your business loan for repairing your machinery and equipment.  

Capital Assistance in Getting Loans from Banks

Small businesses need capital assistance to develop their business infrastructure and meet their several business needs. At Aatmnirbhar Sena, we have formulated our strategies in the direction of providing support by rendering capital assistance in getting loans from banks.

Top 5 Loan Schemes by Government for Small Businesses in India

India has got the tag of the only truly emerging market in the world in the current scenario. A significant chunk of this growth is fueled by the micro, small, and medium enterprises of the country. The SME sector in India contributes over 40% of the entire GDP and sticks to be a critical source of employment for the rapidly growing population in India. After realizing the worth of SME growth in the post-demonetization era, the government has commenced various new business loan schemes & boosted the already existing ones.

If you are looking forward to avail for small business capital assistance, you must look at the top 5 business loan schemes mentioned below-

MUDRA Yojana for Capital Assistance

In order to meet the financial requirements and furnish capital assistance to small business owners so that they can fuel up their business growth, Pradhan Mantri MUDRA Yojana was kick-started in 2015. Medium as well as small businesses are not capable enough to obtain loans from banking institutions because of lack of security and scarcity of funds for paying off the interest. In India, more than 577 crore small-scale business ventures are present today. Supporting these businesses and helping them in their growth would eventually lead to the progress of India’s economy.

Key Objectives of MUDRA Yojana

The significant objectives of MUDRA Yojana are mentioned below-

• To consolidate the informal economy into the formal territory.
• To grant capital assistance to the micro-enterprises sector.
• To bring small-scale enterprises such as the Non-Corporate Small Business Sector and ‘own account enterprises’ under the roof of the formal financial system
• To formulate an employment path in these micro-units.
• To extend the wholehearted support by granting affordable credit to MSMEs.
• To refinance collateral-free loans granted by the lenders to small borrowers.
• To keep a check on the micro-finance institutions.

As per the financing options present under this PM MUDRA Yojana, the loan limits as well as interest rates differ for accommodating for the advancement phase of the respective business availing such loan.

Given below are the applicable limits and rates concerning the loans under this Yojana-

• Shishu

  Loans up to a maximum limit of Rs. 50,000 with interest being 1 %/month or 12 %/annum. The repayment period concerning Shishu loan is up to 5 years.

• Kishore

  It entails loans from Rs. 50, 000 and up to Rs. 5, 00,000. According to the guidelines associated with the schemes and considering credit history of the applicant, the interest rate would depend on the bank. The period of loan repayment is dependent on the choice of the bank.

• Tarun

  It covers loans from Rs. 5, 00,000 and up to Rs. 10, 00,000. As per the guidelines concerning the schemes & keeping in view the credit history of the applicant, the interest rate would depend heavily on the bank. The period of loan repayment lies on the option of the bank.

In order to disburse this loan, overall 27 Public Sector Banks, 17 Private Sector Banks, 36 Microfinance Institutions, 31 Regional Rural Banks, 25 Non-Banking Financial Institutions as well as 4 Co-operative banks have been picked. 60 % of the loans under MUDRA Yojana to be offered through ‘Shishu’ option & the remaining 40 percent would be through ‘Kishore’ and ‘Tarun’ schemes.

MSME/PSB Loans in 59 Minutes

PSB Loans in 59 Minutes is an initiative that facilitates the business folks to apply for Business Loan at an interest rate that initiates from 8.50%. Indian Government has taken this initiative to encourage a self-employed business model & ease the MSME business in India by minimizing the steps engrossed in the loan approval process and eliminating the long queues in the banks. The intent of PSB Loans in 59 Minutes is to approve business loans in 59 minutes and thereby, bringing it down from a long 30-day process and anticipated to get disbursed in 7 to 8 working days, in case it gets approved.

Eligibility Criteria for PSB Loans in 59 Minutes

To avail this 59 Minutes loan, you need to follow the below-mentioned criteria-

• If you are self-employed & already have an existing business venture, you should be GST as well as IT compliant. Also, you must have bank statements with you for the last 6 months.
• Exhibited below are the factors on which the eligibility of the applicants would get ascertained-

The loans under this Yojana are granted for capital assistance and in order to uplift the MSME segment in the country. Existing businesses, as well as new businesses, can utilize the scheme for capital assistance up to Rs. 1 crore.

Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation

• An initiative, Credit Linked Capital Subsidy Scheme for Technology Upgradation is a wonderful scheme that permits small businesses to upscale their process by financing technology-based upgradation. Although India has emerged as the Hubspot of technological innovations and progress, several small scale industries are still continuing their operations with antiquated technology. 
• Scarcity of capital is the one of the major reasons behind this. 
• This is where the Credit Linked Capital Subsidy Scheme comes into play. 
• This scheme is known as innovative upfront credit scheme.
• Through this initiative, capital as well as financial aid is rendered on the purchase of machinery. Thanks to this Yojana, even micro, small as well as medium industries are now competent to produce high-quality products, & compete on a global level.
• Credit Linked Capital Subsidy Scheme is assisting small scale industries to adapt as well as scale, and accelerate their production.

Products and Industries Covered under Credit Linked Capital Subsidy Scheme

The products and industries encompassed under the CLCSS are mentioned below-

• Food Processing
• Fans and Motors
• Bicycle Parts
• Coir Products
• Printing Industry
• Toys
• Locks
• Glass and Tiles
• Zinc Sulphate
• Poultry Hatchery and Cattle Feed Industry
• Cosmetics
• Mineral Water Bottle
• Drugs & Pharmaceuticals
• Paints & Varnishes
• Biotech Industry
• Industrial Gases
• Sports Goods
• Medicinal & Aromatic Plants-based Industry
• Sewing Machine Industry
• Sports Goods
• Combustion Devices and Appliances
• Heating Elements
• Steel Rolling
• Hardware for Information Technology

NSIC Subsidy (Expanded as National Small Industries Corporation Subsidy)

The NSIC Subsidy for small businesses grants financial advantages of two types-

• Marketing Assistance
• Raw Material Assistance

Imported as well as indigenous raw materials are covered under the raw material assistance scheme of National Small Industries Corporation Subsidy. Funds and capital assistance is provided to SMEs so that they can withstand the existing competition and enhance the market value of their products as well as services under the marketing assistance scheme of National Small Industries Corporation Subsidy. The prime area of concern of NSIC is to grant financial assistance to small as well as medium-scale enterprises who wish to uplift their manufacturing quality & quantity.

Credit Guarantee Fund Scheme for Micro & Small Enterprises

• It’s a monetary support scheme for the betterment of micro & small enterprises.
• A new, as well as an existing business unit that meets the eligibility criteria, receives collateral-free credit under Credit Guarantee Fund Scheme for Micro & Small Enterprises.
• Working capital loan granted under this Yojana is up to Rs. 10 lakh without collateral.
• Nevertheless, for all credit facilities beyond the figure of Rs. 10 lakhs and up to Rs. 1 crore, the only mortgage of loan/ primary security & building linked with the building is acquired, and eligible accounts of such types get covered under CGTMSE (Expanded as Credit Guarantee Fund Trust for Micro & Small Enterprises).
• Assets formed via the credit facility linked with the business unit are deemed security when the loan amount crosses Rs. 10 lakhs.
• Business loans under Credit Guarantee Fund Scheme for Micro & Small Enterprises are funded by several private & public sector banks covered under this Yojana.

Who are Angel Investors?

Angel investors are individuals or groups with deep pockets who are responsible for funding startups, mostly in the form of equity financing. These prosperous individuals are known for financing the funding of a new organization or they can boost the growth of a newly established business. These people bet on new and emerging startup businesses. Angel investors may or may not be elected as authorized investors by the Securities and Exchange Commission.

How does Angel Funding Functions?

• Most angel investors think and make their plans carefully before proceeding ahead for investment. They'll conduct their due diligence; inquire businesses for well-organized business plans.
• They'll go on for competitive analysis to make themselves familiar with the industry.
• In addition to this, they may need numerous meetings & various rounds of presentations from the businesses before granting capital assistance.
• At Aatmnirbhar Sena, we have our well-equipped team who serve as angel investors by helping in decision-making and lending proper advice.
• As angel investor, we are capable of bringing loads of knowledge to the table necessary for the growth and development of the business.

What’s in Store?

Aatmnirbhar Sena is preparing to grant aid to small businesses, hawkers, & street vendors under the numerous capital assistance schemes to meet the deficit in the demand of the capital. Aatmnirbhar Sena has piloted the initiative to pull off the responsibility of enabling women as well as minorities via capital assistance programs and other programs adhering to their capital calls along with other demands. We are aiming to build capacities beyond different sectors that keep potential for entrepreneurs and new businesses with the purpose to produce an equitable platform for one and all. Additionally, we will be promoting local products via our initiatives as well.

Since India's government has fixed its vision to embark on India toward the track of self-sufficiency and our Prime Minister Narendra Modiji has shown the flashes of his desires through Aatmnirbhar Bharat Abhiyan, nourishing the skilled workforce has become the command of the season. Therefore, Aatmnirbhar Sena will support the young and hopeful entrepreneurs and small business owners via capital assistance measures so that they can sustain their workforce and enhance their efficiency and skills via training programs.

Yet to Travel Miles and Render Capital Assistance to Many

The way COVID-19 has wrecked the Indian economy and has brought all the mini-scale businesses & street vendors on their toes, Aatmnirbhar Sena will adorn them with financial support and capital assistance that would eventually make them withstand against all the odds amid the COVID-19 pandemic. Our initiatives with respect to capital assistance would concentrate principally on scaling up small businesses & startups, pulling willing entrepreneurs, elevating the Indian economy's growth, and giving movement to infrastructure development.