Some of the key Government loan schemes initiated in the near recent years include the following:
1. MUDRA Loan under PMMY
“Fund the Unfunded” is the main motto of MUDRA loan . Providing adequate funds to the micro units and the non-corporate small business is the main purpose of the Micro Units Development and Refinance Agency (MUDRA). Bank facilitates loans under the MUDRA scheme as per the customer’s requirements. Under this scheme, the loans which are provided are collateral-free loans.
People can avail loans under MUDRA scheme classified in three categories, such as Shishu, Kishor and Tarun:
- Shishu Loan: The government provides loans up to Rs. 50,000 in this loan scheme. This scheme is basically for the business start-ups
- Kishor and Tarun schemes are designed based on the stage of the business and the funding needs of the beneficiary. Under the Kishor scheme, loans are offered from the amount of Rs. 50,000 to Rs. 5 lakh and up to Rs. 10 lakh of loan amount under the Tarun scheme
2. Stand-Up India Scheme
Stand-Up India is a Government scheme that aims to financially empower SC/ST and women entrepreneurs of the country. Under this scheme the banks facilitate loans between Rs. 10 lakh – Rs. 1 crore, to at least one woman, SC/ST borrower for setting up an enterprise either in the manufacturing or service, or trading sectors. The loan tenure is up to 7 years. This scheme aims at promoting women entrepreneurs among scheduled caste and scheduled tribes.
3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The Government of India launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises . Both new and existing enterprises are covered under this scheme. The amount of loan given to any person depends on the eligibility and viability of their business. The maximum limit of the loan given under this scheme is Rs. 1 crore per borrowing unit and without collateral. Also, this scheme gives collateral-free loans. The banks which are eligible to avail this scheme are all scheduled commercial banks, public and private sector banks, foreign banks, and selected Regional Rural Banks (RRBs) under the category of the National Bank for Agriculture and Rural Development (NABARD) .
4. Market Development Assistance Scheme for MSMEs
This scheme helps in gaining exposure for Micro, Small and Medium enterprises in international exhibitions, study tours abroad, and trade fairs under the MSME India kiosk. The aim is to display the potential of MSMEs and also strengthen them. This scheme provides funding for various purposes as mentioned below:
Highlights:
The scheme offers funding up to 75% in respect of to and fro air fare for participation by MSME entrepreneurs in overseas fairs/trade delegations. The scheme also has provision of funding for producing publicity material (up to 25% of costs), sector specific studies (up to Rs.2 lakh) and for contesting anti-dumping cases (50% up to Rs.1 lakh) – for individual MSMEs & associations.
- Only for registered small & micro manufacturing enterprises with DI/DIC, participation in the international exhibitions/fairs
- Financial assistance for using Global Standards (GS1) in barcoding
- Recognised importance of barcoding and avail financial assistance through Office of the DC (MSME)
