To help MSMEs and to make them more empowered, the Govt of India has introduced several loan schemes for MSMEs.
MUDRA Loan Schemes for MSMEs
Micro-units Development and Refinance Agency or MUDRA is another unique and innovative government scheme for non-corporate, non-farm small/micro-enterprises.
MUDRA was launched with the premise of ‘funding the unfunded’ MSMEs in 2015. More than Rs 40,000 crore worth of loans to MSMEs have been dispersed under Pradhan Mantri MUDRA Yojana (PMMY) (as of August 2020). MUDRA is also a type of refinance loan, which is approved and dispersed via public sector or Govt banks. Loans up to Rs 10,00,000 are provided under the MUDRA scheme.
MSME Loan in 59 Minutes –
Launched by SIDBI or Small Industries Development Bank of India, MSME loan in 59 minutes is one of the unique government loan schemes for MSME and new business, wherein a loan is approved in 59 minutes flat. Once the loan is approved, the process to disperse loans takes 8-9 days.
Under this scheme, Small businesses and MSMEs can get loans up to Rs 10 crore, under refinance schemes wherein 5 Nationalised (PSU) Banks are authorized to provide the loans. The interest rate on this special loan for MSMEs depends on the nature of the business, the current credit rating of the owner, and the tenure for which the loan has been approved.
Credit Link Capital Subsidy Scheme (CLCSS) for Technology Upgradation
Government of India and the Ministry of Micro, Small and Medium Enterprises (MSME) offer loans and credits to small enterprises under the Credit Link Capital Subsidy Scheme (CLCSS) for Technology Upgradation.
As the name suggests, this government scheme has been designed to enable MSMEs to upgrade to the latest technology seamlessly and to remain competitive in the domestic and global markets. Loans up to Rs 15 lakh are provided for enabling MSMEs to use the latest technology, which is a subsidy of 15% of the overall updation expenditure.
If you are looking for business capital, ‘Shilpkar’ offers seed funding for start-ups and MSMEs. Mumbai-based ‘Treta Marketing and Services Pvt Ltd’ is all set to kick start ‘Shilpkar’, an organization to encourage new enterprises by providing them seed funding in the range of ₹ 15K to ₹ 15 Lakh.
‘Shilpkar’ is going to organise an event very soon where potential beneficiaries will be given an opportunity to pitch their business idea.
With the mission to promote new ventures…new thinking ‘Shilpkar’ also seeks to motivate and push local and indigenous businesses and keep them at par with other rising companies by offering offer a no-cost or low-cost business development mentorship, capital arrangement, technical assistance, and other related services to budding entrepreneurs of the country.