The Government of India has launched various subsidized loan schemes for the benefit of people who want to own homes or start their businesses.
Let us take a look at some subsidized home loan and business loan schemes.
If you were searching for govt. subsidy for housing loan, you are probably thinking of taking a home loan.
It can be difficult to get a home loan if your income is on the lower side. Thus, the Indian government has launched many home loan subsidy schemes for people of certain groups so that they too can become homeowners.
Similarly, running a business without funds is a difficult task. But getting a loan can be a major issue for small businesses that don’t have many assets to pledge as collateral.
There are many government schemes for businesses as well, which encourage MSMEs (Micro, Small, and Medium Enterprises) to start and continue their business without worrying about funds.
We will take a look at home loan subsidy schemes and government subsidy loans for businesses one by one.
If you were looking for subsidy on home loan by govt., the very first program that was started was the Indira Awaas Yojana, in 1996. From there, the Pradhan Mantri Awas Yojana (Rural or Gramin) Mission was started in 2016.
Under this, all rural households that earlier had a ‘kutcha’ house or didn’t have a ‘pucca’ house could build a ‘pucca’ house with help from subsidized loans.
A year prior to this, the Pradhan Mantri Awas Yojana (Urban) Mission was launched on 25th June 2015, which aimed to achieve ‘Housing for All' by 2022.
Given the projected growth of urbanization and the resulting housing demand in India, the PMAY (Pradhan Mantri Awas Yojana) scheme caters to the following groups -
In continuation to the Government’s efforts towards empowerment of women from EWS and LIG, PMAY (U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission.
A home loan subsidy known as the Credit Linked Subsidy Scheme (CLSS) was launched under this mission to provide interest subsidy on home loans to purchase / construct / extend / improve a house.
Everyone eligible for PMAY, can avail interest subsidy under CLSS. This makes home loans more affordable by reducing the customer's outflow on the home loan.
The amount of the subsidy under the scheme is largely determined by the customer's income category and the size of the property unit being financed.
Here some information about the general eligibility criteria for a beneficiary household under govt. subsidy schemes below -
The other specific details related to Govt. Loan schemes are related to the annual income of the household. They are mentioned below -
A household whose annual income is below Rs.3 Lakh is categorized as an EWS (Economically Weaker Section) household. The following are the criteria for an EWS household -
To be categorized as an LIG (Lower Income Group) household, the annual income of a household should be somewhere between Rs.3 Lakh to Rs.6 Lakh. The following are the criteria for an LIG household -
To be categorized as an MIG-I (Middle Income Group - I) household, the annual income of the household should be between Rs.6 Lakh to Rs.12 Lakh. The following are the criteria for an MIG-I household -
A household whose annual income is between Rs.12 Lakh to Rs.18 Lakh is categorized as an MIG-II (Middle Income Group - II) household. The following are the criteria for an MIG-II household -
After reading about ‘subsidy on home loan by govt.’, if you want to know how to apply for a subsidized home loan, read ahead. The two ways of applying for government subsidized housing loans are mentioned below -
The most straightforward way is to approach a bank where this scheme is functional. You can easily take the application forward through the same bank.
Through the CLSS (Credit Linked Subsidy Scheme) portal, you can apply for a home loan in a hassle-free manner. All you have to do is log in to the portal and fill in the application to initiate an application.
A successful MSME(Micro, Small, and Medium Enterprises) not only helps the entrepreneur, but supports the families of the staff. It also contributes to the local art & craft culture, as well as technological development.
MSMEs have to deal with many challenges, the biggest of which is securing funds easily and in a timely manner. To combat this problem, and encourage entrepreneurs, the government of India has come up with several schemes that offer loans at subsidized rates.
Many of these loans cater only to female entrepreneurs, which helps to bring women in the forefront and become financially independent. Read on if you want to know in detail about ‘govt. subsidy loan for business’.
There are multiple schemes run by the government of India for the MSME sector. Some of them are mentioned here -
MUDRA loans or the Pradhan Mantri Mudra Yojana (PMMY) was started in the year 2015 for providing loans to non-corporate, non-farm small/micro enterprises. The funds of the Mudra loans are classified into 3 broad categories -
There is no subsidy as such for loans under the PMMY. But MSMEs are able to get collateral free loans at low interest rates, which lends them a supporting hand.
This scheme is specially for women entrepreneurs in the manufacturing, servicing, or the trading sector. To be eligible under this scheme, even if the enterprise is not individually owned, more than 51% of the stakeholders should be women. Loans from Rs.10 Lakh to Rs.1 Crore can be sanctioned under this scheme.
This is an initiative of the SIDBI (Small Industries Development Bank of India) that allows businesses to avail of funds in a hassle-free manner. It is a website where you can apply for all the government scheme loans and get them approved within 59 minutes. Loan amounts starting from Rs.1 Lakh to Rs.5 Crore can be availed from the same website.
The exact eligibility criteria for subsidized loans from the government depend on the bank that finally sanctions it. But in general, these are the criteria for ‘government subsidized’ loans for businesses -
You can easily apply for any government business loans through the PSB Loans website. You can follow these steps for the same -
Step-1: Visit the PSB Loans in 59 minutes website
Step-2: Register using your name, mobile number and email ID
Step-3: Post registration, you can select your funding requirements as 'Business Loan'
Step-5: After selection of fund requirement, choose the scheme you want to apply under and provide required details
Alternatively, for MUDRA loans, you can download kits from the MUDRA official website. MSME loans can also be applied from the UdyamiMitra portal .
Apart from this, there is always an option to visit your nearest bank branch for more details about any loan.
If your search for govt. loan scheme or govt. subsidy schemes led you here, you must have seen the government has multiple such schemes.
There are various subsidized home loans to work towards the goal of ‘Housing for All’ and also loan schemes for entrepreneurs that give them access to timely funds at affordable interest rates.
Nowadays, even applying for these loans is easy as there is a website or portal dedicated to each scheme.
Even if you cannot find the portal or need any help in applying for these loans, you can easily visit your local bank branch for more details.
And in case you are in need of some urgent money to fund your dreams, why not consider moneyview? You can check out the moneyview website or download moneyview app to get loans up to Rs.5 Lakh.
Under the MIG-I category, the interest subsidy will be at 4% per annum.
You can apply for a loan depending on your parameters, and a loan bigger than Rs.6 Lakh can be sanctioned under your name.
But under this scheme, only Rs.6 Lakh will be at the subsidized rate, the rest will be at normal rates.
No, the MUDRA or the Pradhan Mantri Mudra Yojana is not only for women. It is applicable for all citizens of India who want to start a business or already own one.
The duration required to get a MUDRA loan sanctioned will depend on your documents and your individual case.
But in general, these loans are easily available and are a source of quick and affordable funds for entrepreneurs.
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