Loans for small business under government schemes

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India has about 40 million Micro, Small and Medium Enterprises (MSMEs), including registered / unregistered businesses in the organised and unorganised sectors.

These MSMEs contribute to about 40 per cent of India’s total GDP. The government of India has introduced various schemes to sanction loans to MSMEs to boost and support them.

MSME business loans in 59 minutes

Launched as part of the Atmanirbhar Bharat Campaign, under this scheme, MSMEs receive in-principle approvals for loans of Rs 1 lakh to Rs 5 crore within 59 minutes.

How to apply

Eligible borrowers can apply for the loan through the online portal set up by SIDBI.

Pradhan Mantri Mudra Yojana (PMMY)

This loan can be availed by any Indian citizen who has a business strategy in a nonfarming sector, with incomegenerating ventures like manufacturing, processing, trade, service sector or any other field whose credit demand is less than Rs 10 lakh.

How to apply

Borrowers can apply online through the Udyami Mitra portal, or offline by visiting the nearest bank branch.

SIDBI Make in India soft loan fund for MSMEs (SMILE)

A flagship scheme of SIDBI, the bank provides MSME loans with flexible or soft terms. Under this scheme, MSMEs can apply for loans between Rs 10 lakh to Rs 25 lakh.

How to apply

The borrower can either approach the nearest branch of SIDBI or apply online.

Stand-up India

The Government of India has introduced this loan scheme to provide SME loans to businesses run by SC / ST category individuals and women to support entrepreneurship.

How to apply

Borrowers can apply online at: https://www.standupmitra.in

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)

MSMEs can borrow collateral-free MSME loans up to Rs 200 lakh from banks and NBFCs. CGTMSE pays a guarantee fee to the lender in exchange for financial assistance, ranging from 75 per cent to 85 per cent of the sanctioned loan amount.

How to apply

Applicants can directly approach the lenders. They should also submit a business model explaining the viability of the project. Website: https://www.cgtmse.in

Bank Credit Facilitation Scheme

This scheme facilitates loans to various MSMEs with the help of different private and public sector banks. Both new and existing MSMEs from all sectors are eligible to apply.

How to apply

MSMEs can directly approach branch offices of the National Small Scale Industries Corporation (NSIC). Website: https://www.nsic.co.in

Growth Capital and Equity Assistance Scheme

SIDBI has launched this scheme to provide loans to MSMEs. The loan amount varies which can be used towards any bonafide expenditure.

How to apply

Borrowers can approach the nearest SIDBI branch or apply online at https://www.sidbi.in

Prime Minister Employment Generation Programme (PMEGP)

This is a Government of India-backed credit-linked scheme. It focuses on generating self-employment opportunities in the non-farm sector by helping unemployed youth and traditional artisans.

How to apply

The beneficiaries can submit their application online at https://www.kviconline.gov.in or visit the nearest office of the Khadi & Village Industries Commission (KVIC).

Udyogini

The Government of India, under the Women Development Corporation, has launched the Udyogini scheme for Indian Women entrepreneurs to encourage and provide women with financial assistance to start their own businesses in rural and underdeveloped areas. Under the scheme, these women entrepreneurs can avail of liberal loans for starting their business activities under different categories.

How to apply

Applicants can directly approach lending banks.

(The writer is a Vile Parle-based social activist)

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