is a credit-linked subsidy program supervised by the Ministry of Micro, Small and Medium Enterprises, Government of India. This scheme was launched in 2008 to promote the establishment of micro enterprises in rural and urban areas for generating more employment opportunities. The PMEGP extends financial assistance up to ₹ 23.75 lakh at an interest rate of 11% to 12% to the beneficiaries through the selected banks. One of the greatest benefits of this scheme is that it allows beneficiaries to avail a subsidy up to 35% by investing only 5% to 10% of the total project cost. Usually, the banks evaluate the application and sanction the amount to the beneficiaries within 60 days.
Micro Units Development and Refinance Agency (MUDRA)
This government scheme
offers low-cost credit loans up to Rs 10 lakh. This loan scheme is specifically for non-corporate, non-farm startups and small business entities, and the loans are provided through various banks in the form of Tarun Loans, Kishore Loans and Shishu Loans. Other facilities include a special debit card with your MUDRA.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
facilitates collateral-free loans and offers the opportunity for various regional, rural and commercial banks to enlist as lending authorities. Loans are sanctioned based on the SMB’s credit standing. Under this guarantee scheme, credit facilities up to Rs 200 lakh can be availed by the borrower. For credit up to Rs 5 lakh the extent of guarantee cover is 85% for micro enterprises and for credit from Rs 10 lakh to Rs 100 lakh, the extent of guarantee cover is 50% of the sanctioned amount.
Interest Subsidy Eligibility Certificate (ISEC)
The Interest Subsidy Eligibility Certificate (ISEC)
is a scheme launched by the Government of India to support the Khadi and polyvastra sectors. Under this scheme, the Khadi institutions registered with the KVIC and KVIBs are provided with credit at 4% rate of interest. The Central Government through KVIC pays the difference between the actual lending rate and this concessional rate of interest, to the lending banks.
Coir Industry Technology Upgradation Scheme (CITUS)
This scheme is a part of the Coir Vikas Yojna
and has been introduced to provide financial assistance up to Rs. 2.50 crore to entrepreneurs of the coir sector for upgrading or establishing new units.
Financial Support to MSMEs in ZED Certification Scheme
This scheme has been launched to provide 80%, 60% and 50% subsidy to Micro, Small and Medium enterprises respectively to support the Make in India initiative and help them inculcate the Zero Defect and Zero Effect practices in manufacturing processes.
Small Industries Development Bank of India (SIDBI) Make in India Soft Loan
SIDBI’s Make in India Soft Loan helps SMBs with technological upgrades and expansions for growth purposes. Eligible business owners can expect to receive a minimum loan of ₹ 10 lakh for equipment finance and ₹ 25 lakh for covering other such needs.
Sustainable Finance Scheme
Sustainable Finance Scheme
is created for renewable energy projects. Startups that are wind energy generators, solar power plants, and mini-hydel power plants, among others, are eligible for this loan. This scheme boosts the value chain of businesses that deal in energy-efficient items. This scheme offers working capital loans or term loans.
National Bank for Agriculture and Rural Development (NABARD)
offers refinancing and lending options for rural areas for developing agriculture and agrarian industries through various government sponsored schemes
. It also finances handicrafts, small industries and rural enterprises.
Marketing Assistance Scheme
The marketing assistance scheme
provides budgetary support up to Rs 45 lakh for organizing exhibitions abroad and other marketing related campaigns and activities.