Government Subsidy Loan for Business Small Scale Self Employment Oriented Business Vehicle Loan Scheme 2022


Scheme Form | Loan Assistance Standards | Small Scale Self-employment Oriented Business Vehicle Loan Scheme 2022

Small Scale Self-employment Oriented Business Vehicle Loan Scheme 2022

  • Small Scale Self-employment Oriented Business Vehicle Loan Scheme 2022
  • Onroad unit cost for self-employed vehicles like rickshaws, loading rickshaws, Maruti Ecos, jeep-taxis etc.
  • Up to Rs.10.00 lakh for any self-employed business like business or grocery store, medical store, readymade garment store, bookstore etc. or the actual expenses, whichever is less, will be provided by the corporation on loan.
  • Transport, logistics, travelers, food courts, etc. will be eligible for 3% interest subsidy on a loan of Rs.

Government Subsidy for Business Vehicle Loan Scheme

Name of the Scheme Rate of Interest (p.a.) Loan Amount Repayment Tenure
SIDBI Make in India Loan for Enterprises (SMILE) At the discretion of SIDBI Rs.10 lakh onwards Up to 10 years including 3 years moratorium
Pradhan Mantri Mudra Yojana (PMMY) Varies from bank to bank Up to Rs.10 lakh Varies from bank to bank
Credit Guarantee Scheme Up to Rs.1 crore
Bank Credit Facilitation Scheme Varies from bank to bank Varies from bank to bank 5 years to 7 years
Stand-Up India Scheme Up to base rate + 3% + tenor premium Rs.10 lakh to Rs.1 crore 7 years
MSME Loans in 59 minutes 8.5% onwards Rs.1 lakh to Rs.5 crore As per the bank

Lending criteria for self-employment schemes 2022

  • The applicant must have a valid license in the vehicle loan scheme.
  • The vehicle obtained will have to be mortgaged (hypothecation) towards the corporation.
  • The loan has to be repaid in equal monthly installments of five years after three months of receipt of the vehicle.
  • The small business will have to start within three months of getting the loan and after three months after starting the business the loan will be recovered in the same monthly installment of five years.
  • For a loan amounting to a total of Rs.2.50 lakh or less, the beneficiary will have to incur a burden on his or her relative’s property worth one and a half times the loan amount.
  • If the total loan amount is more than Rs. 3.50 lakh, the total amount will have to be mortgaged in favor of one’s own or any other relative’s real estate corporation.
  • Each borrower will have to provide five post dated checks signed in favor of the corporation.

Eligibility Criteria Business Vehicle Loan Scheme

The eligibility criteria for government loans for small scale businesses will vary from lender to lender but the basic ones have been listed below:

Type of Business All micro enterprises engaged in trading, manufacturing, and services sector including professionals such as architects, doctors, CAs, etc.
Residential Status of the Applicant Resident of India
Age Between 25 years and 66 years
Status of the Business New or existing enterprises

Documents Required Business Vehicle Loan Scheme

Application form Filled and duly signed
KYC Documents Business entity proof, partnership deed, incorporation certificate, shops, and establishment certificate, Articles of Association (AOA)
PAN Card Of partners/directors/proprietors/promoters

Of the business entity

Financials Projected turnover and current year performance

Tax audit reports, balance sheet, profit and loss report, VAT returns, audited and provisional financials, etc.

Address Proof Of the business entity

Of directors/promoters/partners/proprietors

Bank Statements For the last 6 months
Photographs Passport-size photograph of applicant/co-applicants

How to Apply Business Vehicle Loan Scheme ?

Availing government loans for small scale businesses will not cause you much sweat. Since most government loans are dispensed through banks and financial institutions, you can directly approach them to avail loans. You can visit the nearest branch of the bank or financial institution who will guide you on the loan application process.

Some lenders will also allow you to apply for business loans online on their respective websites. You can visit their websites, fill up the application form provided, upload the relevant documents, and submit it. Once you complete the process and the verification is done from the bank’s end, the loan amount will be credited directly into the bank account you provided during the application process.

All self-employment schemes will also have the following qualifications.

  • Applicant should be a native of Gujarat and belong to non-reserved category.
  • The age of the applicant should be between 18 years to 30 years.
  • The interest rate on the loan will be 5% per annum for simple interest and 3% for women.
  • The same amount will be lent per year. Simple interest will be considered accordingly.

Interest rate : The interest rate on the loan will be 5% per annum for simple interest and 5% for women.

Income limit : Annual income limit of the family is Rs. 4.00 lakhs or less.

Important Links Business Vehicle Loan Scheme

Official Notification Read
Official Website Click Hare
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