Loan for startup without collateral

[Giant]

I am running a business from last 1.5 year. Discussed about loan in banks my company's current account is in icici bank they are offering BLI with interest rate of 14...15% with monthly emi . Where BOB is offering OD limit for 4L with PM startup scheme charing 11.5% intrest rate but telling to shift account in BOB which is a long process for us as we have to update all our client about this. Can anyone suggest what to do

 

[himanshurocks]

I need more information to solve your issue like what kind of business you are doing and why is there need to update the clients if you are going to take the loan.
I would suggest you to take the loan from ICICI because difference will be 3.5% if this amount is bearable without any hustle like long process to shift,about updating the client etc.

 

[Giant]

I run a placement consultancy from raj. And we only need to update our clients that we have shifted bank and new bank details need to be updated as invoice raising system is there.and need loan or OD for salary or operations only.

 

[himanshurocks]

First you have to negotiate with ICICI bank for loan by visiting your branch, if you are able to negotiate around 2% (loan at 12,even 12.5%) it would be a better option.
second if you are going to switch account then it may be doubting for customers and their trust issues.

 

[anuragmukherjee28]

these are the two schemes that I could find out , hope that it helps

1. MUDRA Loans under PMMY (Pradhan Mantri Mudra Yojana):

• Offered through partner banks like public sector banks and scheduled commercial banks.
• No collateral required.
• Categorized into three loan amounts:
  • Shishu Loan: Up to Rs. 50,000
  • Kishore Loan: Rs. 50,001 to Rs. 5 lakh
  • Tarun Loan: Rs. 5,00,001 to Rs. 10 lakh

2. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) Scheme:

• Doesn't provide direct loans but offers a guarantee to lenders like banks.
• This guarantee encourages banks to offer loans to startups without collateral.
• Loan amounts can be higher compared to MUDRA loans.

Here's a quick comparison:

Feature	MUDRA Loan	CGTMSE Scheme
Loan provided by	Partner banks	Banks & NBFCs
Guarantee	No	Yes (by CGTMSE)
Maximum loan amount	Rs. 10 lakh	Can be higher than Rs. 10 lakh

 

[Kishan_Sharma]

For all your financing requirements, including business loans, loans against property, and home loans sourced from various banks based on customer eligibility, we offer our expertise. Our commitment lies in securing the best interest rates and minimal processing fees for our clients.

 

[Giant]

these are the two schemes that I could find out , hope that it helps

1. MUDRA Loans under PMMY (Pradhan Mantri Mudra Yojana):

• Offered through partner banks like public sector banks and scheduled commercial banks.
• No collateral required.
• Categorized into three loan amounts:
  • Shishu Loan: Up to Rs. 50,000
  • Kishore Loan: Rs. 50,001 to Rs. 5 lakh
  • Tarun Loan: Rs. 5,00,001 to Rs. 10 lakh

2. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) Scheme:

• Doesn't provide direct loans but offers a guarantee to lenders like banks.
• This guarantee encourages banks to offer loans to startups without collateral.
• Loan amounts can be higher compared to MUDRA loans.

Here's a quick comparison:

Feature	MUDRA Loan	CGTMSE Scheme
Loan provided by	Partner banks	Banks & NBFCs
Guarantee	No	Yes (by CGTMSE)
Maximum loan amount	Rs. 10 lakh	Can be higher than Rs. 10 lakh

Getting same PMMY in BOB they are providing OD Limit for 4L

 

[Giant]

First you have to negotiate with ICICI bank for loan by visiting your branch, if you are able to negotiate around 2% (loan at 12,even 12.5%) it would be a better option.
second if you are going to switch account then it may be doubting for customers and their trust issues.

Not ready to negotiate tried my best with them for lower rate