Unemployment is a major issue which the Government of India wants to tackle. That is why the Government is facilitating the establishment of MSME enterprises so that employment opportunities can be created. Moreover, for the unemployed youth of our country, there are Government-sponsored loans that help them establish their business enterprises. The modern-day youth has the talent to run their own business, and the Government-sponsored loans to give them the needed capital to do so.
Some of the government loan schemes offered by the Indian Government include the following –
- Pradhan Mantri Rozgar Yojana
The Pradhan Mantri Rozgar Yojana was launched in the year 1993 to provide finance to unemployed individuals so that they can start their business. The features of this loan scheme are as follows –
- Individuals who have studied till Class VIII can apply for a loan under this scheme
- The loan funds should be used to start a business venture
- The minimum and maximum age to apply for the loan is 18 years and 35 years, respectively. However, for women entrepreneurs and individuals belonging to the SC/ST categories, the maximum application age is extended to 40 years.
- Training is also provided to the borrower to help him/her set up his/her business.
- The maximum amount of loan available under the scheme is INR 5 lakhs
- The documents required to avail the loan include the following –
- Driving license
- Training certificate of Entrepreneurship Development Programme
- Age proof
- Certificates stating the experience and qualification of the borrower
- Address proof
- Income certificate issued by the Mandal Revenue Officer (MRO)
- New Entrepreneur cum Enterprise Development Scheme (NEEDS)
The NEEDS scheme has been introduced by the Directorate of Industries and Commerce, Government of Tamil Nadu. The State Government offers a loan subsidy of up to 25% of the loan amount. Individuals aged between 21 and 35 years can apply for a loan under this scheme. The individual should also have a diploma, degree, or a vocational training certificate issued by a recognized institution.
- Agriculture loans
Loans that are granted to farmers for their agricultural activities are called agriculture loans. Small and marginal farmers, sharecroppers, tenant farmers, etc. can apply for an agriculture loan to fund their agricultural activities. These loans are offered by financial institutions in collaboration with the Government. Unemployed individuals aged 22 years and above can apply for this loan. There is no rigid requirement for collaterals so that institutional borrowings can be facilitated among farmers. Loans up to INR 1 lakh can be availed as unsecured loans. However, for loans of higher values, collateral security might be required.
- Cash loans
Just as the NEEDS scheme is offered by the Government of Tamil Nadu, cash loans are offered by the Government of West Bengal. Unemployed individuals can apply for cash loans up to INR 50,000. The age of the borrower should be between 18 and 45 years. Cash loans allow budding entrepreneurs to start their business ventures easily without worrying about seed capital.
So, these are some of the loan schemes which are offered by the Government. The purpose of all these schemes is to facilitate individuals to start their business ventures. You can, therefore, avail of any of the above-mentioned loan schemes and fund your dream business.
