Home Finance 5 Government Schemes to Get A Quick Micro Loan in India

5 Government Schemes to Get A Quick Micro Loan in India


MSMEs are contributing a lot to India’s gross domestic product. They have also helped solve the problems of unemployment, poverty, and financial imbalance to a great extent

The Government has always been taking initiatives to promote MSMEs.To help MSMEs grow and develop, it has introduced various schemes that provide micro loans to entrepreneurs. Entrepreneurs can borrow money through any of the schemes as per their need and convenience.

Read on to know about the types of schemes for a quick micro loan in India!

1.MUDRA loan

The Government of India introduced the MUDRA loan scheme for small and medium scale enterprises. The purpose behind this scheme is to provide micro loans to the needy and aspiring entrepreneurs. One can apply for a loan for start-up business in India under this scheme. There are three categories of loans under the scheme.

  • Shishu loans – loan amount up to Rs. 50,000
  • Kishor loans – loan amount between Rs.50,000 to Rs.5,00,000
  • Tarun loans – loan amount between Rs.5,00,000 to Rs.10,00,000

2. MSME Business Loans in 59 minutes

It is another initiative taken by the Government to provide financial help to new and existing business entities. As the name suggests, the time limit for approving a loan application under this scheme is 59 minutes. The disbursal of the loan amount takes time. One can avail of a loan amount of up to Rs.1 crore under this facility. The interest rate varies from one borrower to another. There is no need for collateral, and the application process is simple. The basic motto is to provide quick micro loans to borrowers.

3. National Small Industries Corporation Schemes 

National Small Industries Corporation (NSIC) works for the growth and promotion of MSMEs. NSIC offers services in finance, marketing, technology and other fields. MSMEs do not need to bear any cost or provide a security deposit for availing of this scheme. To assist MSMEs, the NSIC has introduced the following schemes –

  • Credit Support Scheme 

This scheme provides financial support for marketing activities and procuring raw materials.

  • Marketing Support Scheme

This scheme aims to help the MSMEs grow and compete in the market. The scheme provides support in the form of plans like Tender Marketing and Consortia.

4. Stand-Up India

Stand-Up India is a scheme for the Scheduled Caste, Scheduled Tribe and women. The Government has taken this initiative to encourage eligible entrepreneurs from these categories. The loans under this scheme range from Rs.10 lakhs to Rs.1 crore. The loan is a composition of term loan and working capital loan. In the case of an enterprise, a woman or member of SC/ST should hold at least a 51% stake.

5. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFMSE)

The Government has created a trust for implementing this scheme. It is being called the Credit Guarantee Fund Trust. This scheme provides working capital loans up to Rs.200 lakhs to MSMEs. The loans are collateral-free. Entrepreneurs can take a loan for startup business in India under this scheme. Eligible women applicants are being given preference.

There are many other schemes designed by the Government of India to provide micro loans. Micro loans are helpful for the growth of small enterprises and the economy at large. One should research the different options before selecting one. Apart from these above-mentioned schemes, you can always avail of business loans from leading lenders that comes with easy to meet eligibility criteria and affordable rates of interest.

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