World MSME Day is observed every year on 27 June to mark the contribution made by the small scale business sector. The Small and Medium Enterprises (SME) sector accounts for about 40% of the total GDP of India and plays an important role in bringing more employment to the country. The Government of India (GoI) gives several loan schemes to small scale businesses to further finance them which can be used to run their operations, buy new equipment, grow their business etc.
Check out the schemes offered by the government –
MSME Government Business Loan Scheme The scheme was unveiled by the Government of India as a working capital loan in which an MSME can get a loan of Rs. 1 crore in 59 minutes. The interest rate at which this loan is offered is 8% with easy repayment options. To get the required loan, the GST identification number of the business and then income tax return in XML format has to be filed. Also upload last 6 months bank statement in business account and then enter personal, educational and ownership criteria of director and submit application.
Mudra Business Loan The scheme provides loans to small businesses and start-ups through low-cost credit and is financed by public and private sector banks. MSMEs working in the manufacturing, trading and service sectors can avail this loan. This scheme comes with three subheadings – Shishu Loan Rs. 50,000, Kishor loan Rs. 5, 00,000, and Tarun Loans up to 10, 00,000.
Credit Guarantee Fund Scheme for Micro and Small Businesses This special scheme provides loans without collateral to the businesses falling under the MSME sector. The Credit Guarantee Fund Trust was created by the Ministry of MSME and Small Scale Industries to launch the CGFMSE scheme.
industrialist This scheme is specially for women empowerment and loan is given to provide assistance to those people who need capital to start business. The maximum loan given under this scheme is Rs. 15,00,000. The eligibility of women to avail this loan is that their age should be between 18 years to 55 years. The annual income of the family of the woman should not exceed Rs. 15,00,000. Apart from this, other documents which are required include passport size photographs, Below Poverty Line card, Birth Certificate, Caste Certificate, Aadhar Card, Passbook or Bank Account, Ration Card and Income to apply for the loan. certificate is included.
National Small Industries Corporation Subsidy The scheme assists in the development of MSMEs across the country including finance, markets, technology and other services. NSIC comes with two schemes – Marketing Support Scheme and Credit Support Scheme.
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