Small Business Loan India

What Do You Know?

Are you worried about your business loans and want to get a loan in India? you can also get a small business loan in India. The Government of India has provided you with a loan of up to 20 lakh crores. If you don’t know, then read this article carefully. 

Today, I Will Talk Only About Business

For small business owners and these four categories:

• Student
• Working professional
• Unemployed youth
• Small business owners

If you are a business owner, a product or service distributor, or a small manufacturer, and if you fall into one of these four categories, you will benefit greatly from this article. You will know how to get the 20 lakh crores the government provides. you can also get your loan calculation by using EMI calculator.

Understanding Your Problem

First of all, if you fall into any of these categories, let’s dive deep and understand what your problem is.

1. If You Are a Student

• Students often procrastinate about how to establish their own business.
• How do you earn money? But it does not come into implementation.
• If you are not able to implement it, then how will it grow?
• Even if you implement it, what if you fail?
• You may have already implemented your idea, but the result is not coming.
• These are the problems you face as a student. I will give the solution to your problem after discussing all the parts.

2. If You Are a Working Professional

• If you are a working professional or just started your career, or you have lost your job due to the pandemic or recession, you can relate to this.
• You may be an IT professional, software developer, marketing and sales professional, telecaller, driver, architect, seller, daily wager, electrician, doctor, nurse, or nutritionist.
• The problem is how to implement your business ideas, and if you have already implemented them but are not seeing results, you might have abandoned your business idea.

3. If You Are an Unemployed Youth

• The problem of unemployed youth is big in our country.
• It includes new graduates, post-graduates, and even those who have dropped out of work.
• As an unemployed youth, you may have a business idea but face challenges in taking risks or implementing it.
• You might have implemented it, but the business was not successful.
• As a business trainer and a professional trainer in the placement department of a university, I am familiar with these challenges. Read more about the student loan.

4. If You Are a Small Business Owner

• Small business owners can include small product distributors, service providers, street vendors, or self-employed professionals.
• If your business is unregistered, you cannot access these loans.
• To fully utilize the MSME loan provided by the Government of India, you need to follow these steps.

How to Structure Your Business for MSME Loan India

You need to transform your business from unstructured to structured. What does this mean?

• You need to register your business to be eligible for loans.
• The type of registration you need depends on your business income.
• There are four types of registrations:
  1. Proprietorship
  2. Partnership
  3. LLP (Limited Liability Partnership)
  4. Private Limited Company

Choosing the Right Business Registration for Small Business Loan India

• If your business has a turnover of 20 lakh rupees or less, 
• For businesses between 50 lakh and 1 crore rupees, it is recommended to register as a partnership or LLP.
• If your business exceeds 50 lakh rupees but remains under 1 crore, you can also extend from a proprietorship.
• Partnership requires having a business partner, whereas LLP can be suitable for an individual business owner.

Understanding Different Registration Types for Small Business Loan India

1. Proprietorship

• Best for businesses with transactions under 20 lakh rupees.
• You can register for GST even if your business is under the 20 lakh limit for additional benefits.

2. Partnership

• You can only register a partnership if you have one or more partners.

3. LLP (Limited Liability Partnership)

• LLP is a higher-level registration directly under the Ministry of Corporate Affairs.

4. Private Limited Company

• Pvt. Ltd. is one of the most prestigious registrations.
• Even for a company up to Rs 20 crore,
• you will have yearly compliance requirements under Pvt.