how to start a business with government schemes, Before you apply for a business loan.. this is very important! – 5 things to consider before applying for business loan and what are the government schemes

Investments are essential for starting a new venture or expanding an existing business. Business loans offered by various banks and other financial institutions help your idea spread its wings and also provide loans. How to implement this in the real world is what makes you successful. However, it is better to check a few things before extending a loan to any business. When applying for a loan first, do not apply for a loan from multiple financial institutions and banks at the same time. If your application is rejected in any one of them, your applications will continue to be rejected in all the banks.
Also it is better to take loans only from banks approved by RBI.

Next your CIBIL score should be good. Because it is a certificate of credit worthiness of the borrower. A higher CIBIL score increases the probability of loan applications being accepted, while lower scores have a negative impact, so maintaining a good CIBIL score through disciplined financial practices is highly recommended.

Along with the business loan application, the borrower has to submit several supporting documents including KYC related documents, income proof and company details. Lack of required documents can be a big challenge for your business loan application so get these properly.

Before applying for business loans, it is very important to register your venture. Lack of business venture will reduce the probability of your loan application approval.

The central government is encouraging self-employed people. The government believes that more employment can be created through self-employment. Therefore, Mudra Loan Scheme was introduced to provide loans to self-starters.

Pradhan Mantri Mudra Yojana was launched in 2015. This scheme was introduced to help small and micro enterprises. Those who want to start a business can get a loan of up to 10 lakh rupees under the Mudra loan scheme.

The government has released information that 18.60 lakh crores of rupees have been disbursed so far in seven years since the Mudra loan scheme was launched. Mudra loan is offered under three categories namely Sishu, Kishore and Tarun.