StartupTalky

Tag: Start Business

  • How to Get a Government Loan for Startup? | List of Government Business Loans

    The entrepreneurial dreams of Indians have given the country over 94 Unicorns in recent years. This number is expected to cross a century by the end of 2022. Startups across the MSME sector have been at the heart of the Indian economy and generated millions of jobs for people across the country.

    It is anticipated that MSMEs alone contribute 8% of the overall GDP, and startups play a huge role in it. But unfortunately, not every entrepreneurial dream gets the chance to take off due to a lack of funds. Keeping this in mind, the Indian government offers various government loans to help passionate entrepreneurs make through.

    Budding entrepreneur with a revolutionary idea in mind should use the government loan schemes to transform their ideas into action. For further assistance of all entrepreneurs, we’ve curated this epic guide that has all the information on how to avail of a government loan for a startup.

    Who Can Avail Business Government Loans for Startups?
    Documents Required to Avail the Government Loan
    List of Government Loans for Startups

    How to Choose the Best Loan Ideal for Your Business?

    Who Can Avail Business Government Loans for Startups?

    How to get Government business loans for startups
    How to get Government business Loans for Startups

    Although the precise eligibility criteria would vary depending on the government loan people take, the general criteria common across all loans are:

    • The applicant must be an Indian citizen
    • The applicant must have a robust business plan
    • The applicant should be more than 21 years of age; the maximum age is capped at 65
    • The startup must be registered as a partnership firm, sole proprietorship, Limited Liability Partnership (LLP), Private Limited company, etc
    • The applicant and startup must have a good credit score

    Documents Required to Avail the Government Loan

    People willing to avail government loan for a startup should be ready with the following documents:

    • KYC documents, including Aadhar card, passport, voter’s ID card, PAN card, etc
    • Past 12 month’s bank statement
    • Self-drafted, sound Business Plan
    • Previous year’s ITR
    • Credit Rating/CIBIL documents
    • GST Documents
    • Business establishment certificate
    • Business address proof
    • Any other document asked by the lending institution

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    List of Government Loans for Startups

    Government business loans have always provided the necessary financial backing to startups. If a startup requires some financial help, the founders might want to apply for any one of the following government loans for a startup.

    Pradhan Mantri MUDRA Yojana (PMMY)

    Pradhan Mantri MUDRA Yojana (PMMY) – Government Business Loans for Startups

    Launched in 2015, this government loan scheme offers business loans to non-corporate & non-farm small and micro-enterprises. Under this scheme, startups can avail of a loan amount of up to Rs. 10,00,000. The tenure for repayment for this collateral-free loan ranges from one year to five years. Startups can avail of this loan by visiting any nearest small finance bank, microfinance institution, commercial bank, and non-banking financial company.

    The Pradhan Mantri MUDRA Yojana provides loans depending on the development stage of the startup. Hence, the applicants can find the following three segregation under this loan:

    Loan Type Coverage Yearly Rate of Interest
    Shishu Up to Rs. 50,000 1% to 12%
    Kishore Above Rs. 50,000 to up to Rs. 5,00,000 8.60% to 11.15%
    Tarun Above Rs. 5,00,000 to up to Rs. 10,00,000 11.15% to 20%

    Startup founders can apply for this loan if they’re a trader, shopkeeper, vendor, etc. Just visit any lending institution mentioned above or login to a PSB or 59 minutes portal and do the needful. They will guide further. Startups can utilize this loan as a working capital loan through the offered MUDRA card.

    Pradhan Mantri MUDRA Yojana (PMMY) – Government Business Loans for Startups

    MSME Loan in 59 Minutes

    MSME Loan for Startups Approved in 59 minutes
    MSME Loan for Startups Approved in 59 minutes

    As the name suggests, this loan offered by the government is approved in 59 minutes flat. Launched by SIDBI, this loan is ideal for small and medium-size startups that need capital assistance of under Rs. 10, 00,00,000 at a somewhat lesser interest rate. In some cases, the interest rate is as low as 8%.

    To avail of this Public Sector Banks (PSB) loan scheme, startup founders can visit the Central Bank of India, Canara Bank, Bank of Baroda, Bank of India, SBI, etc., for a hassle-free loan application process. Once the loan application is processed and approved, the applicants can get the amount within 8-10 working days. Startup founders can also visit the PSB loan in 59 minutes portal to get more details about this loan scheme and apply.

    Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises

    CGTMSE for starting new Business
    CGTMSE for starting new Business

    Also known as CGTMSE, this government business loan provides collateral-free loans to startups. Launched by the SIDBI and MSME ministry, this loan scheme offers a loan amount of up to Rs. 2,00,00,000 to both new and existing startups. A special preference is given to women entrepreneurs under this loan scheme. Under the CGTMSE, startups can get a collateral-free loan of up to Rs. 10,00,000. But for any amount above this value, startups will have to provide collateral in the form of any building or land attached to the primary business.

    Those who want to avail of the CGTMSE loan can approach a scheduled commercial bank or select a regional rural bank classified by NABARD for loan approval. Both new and existing startups can apply for this loan engaged in manufacturing activity, retail trade, and service activity.

    Credit Facilitation Through Bank by NSIC

    NSIC Launched by the MSME ministry for business loans
    NSIC Launched by the MSME ministry for business loans

    The NSIC has signed an MoU with various banks to provide super-fast and hassle-free loans to different startups. Launched by the MSME ministry, this one-of-a-kind loan facility is provided by NSIC under the central government. The best part of this government loan is that NSIC also helps complete the full documentation and legal formalities to quickly avail of the loan.

    Small or medium startups needing a short-term loan for maintaining working capital or other operations should consider applying for this loan. It is a reasonably low-interest loan and can be availed by visiting any well-known banking institution like the HDFC bank, ICICI bank, Axis bank, YES bank, etc.

    Also known as CCLCSS, it is a loan provided by the MSME ministry and the government of India to startups for technology upgradation. Startup founders that own a manufacturing enterprise, textile startup, fabrication unit, or any business that uses machines and equipment should avail of this loan of up to Rs. 15 lakh to upgrade to the latest technology. This loan helps startups stay up-to-date regarding technology to withstand the competition at local and global levels.

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    How to Choose the Best Loan Ideal for Your Business?

    Now that the information related to top business loans offered by the government to startups is made available, some entrepreneurs might be confused about which one to proceed with. The answer is pretty simple. Every loan discussed above has a different purpose, interest rate, credit limit, etc. The startup founders should go ahead with the one that helps the business stay afloat and even scale in the best way possible.

    To apply for any of the above-discussed government business loans, startup founders can head to the respective website of the financial institution providing the loan, fill out the application, and wait for someone from the organization to contact them. Business loans offered by Government are sure to help you accelerate your business growth, so they should be applied for.

    FAQs

    What are the Government loans for startups?

    List of Government Loans for Startups are:

    • Pradhan Mantri MUDRA Yojana (PMMY)
    • MSME Loan in 59 Minutes
    • Credit Guarantee Fund Scheme for Micro & Small Enterprises
    • Credit Facilitation through Bank by NSIC
    • Credit Link Capital Subsidy Scheme

    How much loan can you get under the MSME government business loan scheme?

    Under the MSME government business loan scheme, as an MSME, a startup/business can get a loan sanction of up to Rs. 1 crore within just 59 minutes.

    What is the eligibility for a startup business loan?

    Eligibility Criteria for Startup Business Loan are:

    • Resident citizen of India
    • Minimum CIBIL score of 700
    • Business should at least 2 years old
    • Annual income of business should be at least INR 2 lakhs
    • Applicant Should be between 21 years to 65 years of age

  • How to Start a Digital Marketing Company? – A Stepwise Guide

    ‌‌In reaching a wider audience, having a definite taste, companies are switching to the digital mode of marketing. Digital marketing is the modern approach to dealing with demand and supply.

    ‌‌Almost every business is trying to take advantage of digital marketing. But very few can understand that the digital world is not only for the supply of services but also to create the demand for them.

    ‌‌The field of marketing in the digital world is getting smarter. Along with dedication, you also need planning and proper execution. As the internet world is saturated with competitors, new ideas with appropriate promotional guidelines can only be helpful to survive in such situations. If you are among those who want to start and excel in digital marketing, then the below steps will be the best way to start the journey.

    Steps to Start a Digital Marketing Company
    Step 1. Decide The Niche- Your Strength
    Step 2. Competitive Research & Strategy: Know yourself
    Step 3. Website Launch: Set Your Brand
    Step 4. Build The Portfolio: Your Brand Image
    Step 5. Generating Leads: Interact and Grow
    Conclusion
    FAQs

    How to start a digital marketing company? – A Guide

    Step 1. Decide The Niche- Your Strength

    “Your competitors and the audience are factors that make the niche-finding process vital “. Simplifying the statement, it will be challenging for you to grow with a highly competitive niche. Along with that, if you have a niche, then it will be easier for you to get your target audience.

    ‌‌It would be best if you do healthy research over some topics, which are evergreen. But the niche must have less competition in the market. It will help you get easy growth and adequate visibility before the audience. You can still choose a niche with higher competition but need to adopt a unique approach to deal with the market and audience.

    ‌‌Once you get your niche for starting the digital marketing company, it will be easier to decide your target audience. You can plan accordingly to reach and provide the services to them. Target audience can help save time for generating leads and producing sales. It can be a cost effective approach to deal with the growth of the company.

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    Step 2. Competitive Research & Strategy: Know yourself

    Competitive research to start digital marketing company
    Competitive research to start digital marketing company

    ‌‌The niche you select can decide your establishment and the industry’s stability. Before starting your digital marketing company, you could observe more than hundreds and thousands of such industries leading with remarkable results. If you are planning to copy the strategy of a similar company, then it will be a difficult journey for you ahead. Do healthy research on similar marketing agencies, learn from their mistakes. Observe their skills, point out their loopholes and build your strategy with an improved and established base.

    ‌‌Believe in organic reach and avoid overnight success. Understand your audience, their needs and create the possibilities of demand and order.

    Some practical things, which you can keep in mind while forming your strategy:

    • Transparency: To create a trust factor
    • Keep the process smooth: Avoid confusion
    • Audience Reach: Create an opportunity to interact with your audience
    • Time Effective service
    • Cost-effective service

    How much money do companies spend on Market Research?
    Big companies spend nearly 5-10% of their annual revenue on market research as it provides a deeper understanding of their customer and competitors.
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    Step 3. Website Launch: Set Your Brand

    Launch your website for your digital marketing company
    Launch your website for your digital marketing company

    The web presence will create authentication of your brand and services. Building your professional website will be the first step you should take after setting the strategy. The brand website must ensure clients’ needs and how your services will be the best choice.

    ‌‌Never discuss who you are and what you do. Instead, show the client’s actual needs. Build an interface, which explains the benefits. Keep an organized website with easily accessible contact information. Present the legalization of your website by registering with government authorization.

    ‌‌Secure your brand name on every social media site to spread your presence. Clients will search all the high-profile social media sites to verify your authentication. Your brand on social media sites also increases your reach. And it is crucial to interconnect each other, which will help lead generation. Your most popular social media site can transfer audience to other sites and it will create a strong network of interested leads.

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    Step 4. Build The Portfolio: Your Brand Image

    Building a portfolio is not something you can get ready before a definite time. It will demand time, improvisation, and delivery. The portfolio consists of testimonials, positive reviews, recommendations, brand partnerships, and collaborations. If big brand names are connected and benefit from your services, they can build a great portfolio.

    ‌‌You can offer low-cost services to get your initial clients and collect positive reviews. Once the process is initiated, regulate the price accordingly, but the quality of services must be best to avoid negative feedback. Always respond to client reviews, try to reciprocate their feedback. Your quick action towards their feedback will make them reward positive reviews.

    ‌‌It is a time taking process. Collaborative with different companies and partners to build a strong portfolio. Learn different strategies from successful digital marketing agents. Interact with your satisfied clients and understand their expectations to improve.

    Step 5. Generating Leads: Interact and Grow

    Lead generation is the most crucial and most challenging step in establishing a successful digital marketing company. To achieve a trustworthy lead, it is essential to focus on collecting organic lead generation.

    ‌‌Connect with your initial leads to create the possibility of more reach. They can spread your services among their friends, family, and colleagues. The companies, in recent times, are using referral systems to operate successful organic lead generation.

    ‌‌You can judge the behavior and habits of your target audience. Accordingly, prepare collaboration meet, organize events, or do anything to reach the audience.

    Conclusion

    Starting a digital marketing company is not a big deal but succeeding in the business is always unpredictable. You might have a perfect blueprint for building a successful digital marketing company, but trust us, every niche and company needs different treatment. Planning is necessary before starting, or think of starting something like a digital marketing agency.

    ‌‌Competition is not the only thing always, it demands a lot of patience. If you are planning to build the company through complete organic leads, then you will be needing more patience. Understanding the interest of people and reaching them with a suitable approach is difficult, but important to excel in the digital marketing world. Observe your niche, and do competitive research over the topic. Try to come up with ideas, which are fresh and effective.

    FAQs

    Is Digital Marketing a good business to start?

    Yes, as the Digital Marketing industry is progressing at a high growth rate, it is great to start a Digital Marketing Company.

    Why Digital Marketing is growing?

    Digital marketing industry is growing as Digital Marketing is quite flexible to do and more engaging than traditional marketing methods.

    Which are the top 10 Digital Marketing Agencies in India?

    Some of the top Digital marketing Agencies in India are:

    • Uplers
    • Webchutney
    • IndeedSEO
    • WatConsult
    • Intellemo
    • Gozoop
    • EveryMedia
    • EZ Rankings
    • Social Wavelength
    • Phonethics